The Relative Importance of Global Agricultural Subsidies and Tariffs, Revisited

Over the past three decades, tariff protection to farmers has fallen and partly been replaced by domestic support, whilst support for farmers in some emerging economies has grown. Against that backdrop, this paper provides new estimates of national economic impacts of global agricultural tariffs and...

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Bibliographic Details
Published in:World trade review 2023-10, Vol.22 (3-4), p.382-394
Main Authors: Anderson, Kym, Corong, Erwin, Strutt, Anna, Valenzuela, Ernesto
Format: Article
Language:English
Subjects:
Agribusiness
Agricultural economics
Agricultural policy
Agricultural production
Agricultural subsidies
Commodities
Consumers
Economic impact
Environmental stress
Estimates
Exports
Farmers
Farms
Food
Food security
General Agreement on Tariffs and Trade
Global economy
Import restriction
Imports
Income inequality
International trade
Natural resources
Nutrition
Organisation for Economic Co-operation and Development
Original Article
Poverty
Self sufficiency
Socioeconomics
Subsidies
Tariffs
Trade Policy
Trends
World Trade Organization
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Summary:Over the past three decades, tariff protection to farmers has fallen and partly been replaced by domestic support, whilst support for farmers in some emerging economies has grown. Against that backdrop, this paper provides new estimates of national economic impacts of global agricultural tariffs and domestic supports. Using the latest global economy-wide GTAP (Global Trade Analysis Project) model calibrated to 2017, we simulate (a) the removal of food and agricultural domestic supports and agri-food tariffs and (b) the removal also of tariffs on imports of non-agricultural goods. We find that agricultural support policies are still an important part of the global welfare cost of all goods’ trade-restrictive policies (albeit only half as costly as in 2001), and tariffs still dominate the global welfare cost of all farm-support programs. That farm support could be re-instrumented to relieve natural resource and environmental stresses, boost food and nutrition security, and alleviate poverty and income inequality.
ISSN:1474-7456
1475-3138
DOI:10.1017/S1474745623000101