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GTAP Resource #2261

"Liberalising Border Trade in Agriculture: Implications for South Asian Countries "
by Chadha, Rajesh

South Asian agricultural markets are likely to get affected through various re-adjustments in the output-vector as it exists before and after trade liberalisation both at global and South Asian countries' borders. We use the GTAP general equilibrium model to understand the likely impact on the agricultural sectors of Bangladesh, India, Pakistan and Sri Lanka through demonstration of their likely gains/losses from liberalisation of international agricultural trade regime. We have also run simulations with alternative assumptions about the four South Asian countries dismantling or not dismantling its tariff protection granted to their agricultural sectors. The South Asian region, in particular, gains from the complete elimination of agricultural tariffs by the high income countries except for Bangladesh. Higher gains are attained when the high income countries eliminate domestic and export subsidies in addition to their tariffs in agricultural sectors. Realisation of a regional trade agreement in agriculture is likely to bring gains to the South Asian region, though Bangladesh looses under such arrangement. The regional gains become multi-fold upon complementing the RTA with complete liberalisation by high income countries. Within the South Asian region, autonomous liberalisation of agricultural tariffs by the member countries exhibits gains for both, the member country and the region, but for the Sri Lankan case when it looses upon eliminating its own agricultural tariffs.

Rajesh Chadha, NCAER:

Resource Details (Export Citation) GTAP Keywords
Category: Pakistan Conference Paper
Status: Published
Date: 2007
Version: Alpha
Created: Chadha, R. (2/20/2007)
Updated: Batta, G. (3/5/2007)
Visits: 2,193
No keywords have been specified.

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