Domestic support and the WTO negotiations |
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Authors: | Daniel A. Sumner |
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Affiliation: | Professor in the Department of Agricultural and Resource Economics, University of California, Davis, and Director of the University of California, Agricultural Issues Center. |
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Abstract: | In their attempt to maximise trade benefits, agricultural trade negotiators must allocate scarce resources and consider trade-offs across issues such as liberalising foreign border measures or reducing foreign domestic subsidies. Analysis and examples support the notion that more liberalisation will be achieved in the new WTO round by emphasis on lowering border barriers and export subsidies rather than attempting to discipline domestic farm subsidies directly. Analyses of EU grain policy, Korean rice policy and US sugar policy show how reduced export subsidy or more import access have substantial trade benefits, even if farmers are compensated with payments or price supports. |
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