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GTAP Resource #1122

"The WTO Agricultural Negotiations: Reform Options and Outcomes for New Zealand"
by Rae, Allan and Anna Strutt


Abstract
With its strong comparative advantage in agricultural production, New Zealand has much to gain from liberalization of international agricultural markets. The Uruguay Round was the first multilateral trade round in which a major effort was made to reform agricultural trade. However there remains much to be done and agricultural negotiations are likely to be very contentious. In countries where agricultural protection is currently high, farmers and other special interest groups have strong incentives to oppose further reform. Improved understanding of the impacts of agricultural market liberalization will help to make the benefits more clear and better inform negotiations.

A new WTO Round of agricultural trade negotiations began in March 2000; in this paper we analyse some of the potential outcomes. We analyse proposals for agricultural reform that have been submitted under the current Round and we use the GTAP model to examine the impacts of various reform options, with a particular focus on New Zealand. Globally agriculture is one of the most heavily protected and subsidised sectors. In particular, trade in products that can be produced on grasslands (ie dairy products and ruminant meats) is seriously disrupted by current agricultural policies, with protection of ruminant meats and dairy products amongst the highest of all foods. These are important export products for New Zealand and preliminary modelling results suggest that there are likely to be large gains from including liberalization of these markets in any agreement on international agricultural market reform.


Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
2002 Conference Paper
Status: Published
By/In: Presented at the 5th Annual Conference on Global Economic Analysis, Taipei, Taiwan
Date: 2002
Version:
Created: Bacou, M. (6/20/2002)
Updated: Bacou, M. (7/16/2002)
Visits: 1,888
No keywords have been specified.


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