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WTO’s Agreement on Agriculture: Implications for Trade, Sustained Agricultural Growth And Poverty Alleviation /доклад на 10 конгрессе ЕААЕ, Exploring Diversity in the European Agri-Food System, Zaragoza, Spain, 28-31 August 2002

Опубликовано на портале: 30-11-2003
A theory-based graphical analysis of WTO’s trade liberalization policies (opening of close-economy to international trade and cuts in price-supports, import-tariffs and exportsubsidies) suggests that most of such policies would yield net social gains to the society, as a whole. The adverse effects and losses in producer surpluses of some of the policies would be balanced out by greater gains in consumer surpluses and vice versa. Losses in producer surpluses due to cuts in price supports and import tariffs are also expected to be partially subsided by reductions in export subsidies mainly granted by the USA and EU; hence, policies need to be enforced, not in isolation, but in a simultaneous fashion. Trade liberalization would help minimize control of individuals on trade, leave less room for individual policy makers, tax collectors and interest groups to exploit situations in their own interest and lead the economy to be run in accordance with the supply and demand forces based on the last lasting general tendency of human nature. This would help to achieve a sustainable and stable agricultural growth; however, more durable sustained growth would depend as how effectively trade liberalization is pursued and enforced the world over. Opening of closed economy for exportables, and withdrawal of export subsidies by foreign exporters would be proproducers and would directly contribute to poverty alleviation. Opening of economy for importables, withdrawal of price supports and tariff-cuts on imports would yield savings to consumers and would positively contribute towards poverty reduction.

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