By Will Martin; Kym Anderson
Agricultural alternate reform is important to a good improvement consequence from the Doha improvement time table. yet agricultural rules and the coverage reforms being meditated are fiendishly advanced, and the satan is within the information. Agricultural exchange Reform and the Doha improvement schedule builds up from the fundamental aspect of the price lists and different safety measures, and makes use of this knowledge to supply an research of the big-picture implications of proposed reforms. offering the main entire and recent research of the diversity of agricultural concerns less than negotiation within the multilateral alternate negotiations underway on the earth alternate association (WTO), this name is a beneficial source to policymakers, agricultural deepest quarter, and teachers in constructing and assessing the negotiating ideas.
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Additional info for Agricultural Trade Reform And the Doha Development Agenda (World Bank Trade and Development Series)
Generally throughout this volume we use the term high-income economies to include the developed countries, the new Central European members of the EU, and the four Asian “tiger” economies of Hong Kong (China), Republic of Korea, Singapore, and Taiwan (China). The term developing countries generally excludes these latter four (and includes other economies in transition). However, in modeling tariff cuts in Doha scenarios, we treat these four Asian tiger economies the same as other developing economies because they have self-nominated to retain that status in the WTO (because it may bestow certain benefits including lesser obligations to cut tariffs).
High binding overhang in developing countries means they would have to make few cuts. Given the high binding overhang of developing countries, even with their high tariffs and even if tiered formulas are used to cut highest bindings the most— relatively few of them would have to cut their actual tariffs and subsidies at all. That is even more the case if some special products are subjected to smaller cuts, and if developing countries exercise their right, as laid out in the July Framework Agreement, to undertake smaller cuts (zero in the case of least developed countries) than developed countries.
The reason is twofold: they have relatively high tariffs themselves and, more importantly, their exporters face much higher tariffs in high-income markets than do exporters from the high-income countries themselves. What are the policy measures contributing most to those potential gains from full trade liberalization? First, although agriculture contributes only 4 percent to global GDP, policies for that sector are responsible for two-thirds of the global cost of merchandise protection. Almost four-fifths of that cost is attributable to high-income country policies, with only one-fifth due to farm policies of developing countries.