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Blue Box Policy Reform in the Doha Round Negotiations: Effects and China's Position

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  • Jie Cheng
  • Laping Wu
  • Richard W. Dawson

Abstract

This paper uses an agricultural trade policy simulation model to quantitatively evaluate the effects of Blue Box policy reform on agricultural production and trade, and further provides specific proposals regarding China's reform position. The results indicate that, if the reform could achieve a reduction in distorting supports in more developed countries, China's total agricultural production would increase, accompanied by a decrease in agricultural imports and a slight increase in exports. In terms of social welfare, producers would gain significantly, consumers would lose and government would not suffer greatly, which is in accordance with current agricultural policies in China. As a core member of G20, China should approve a subsidy level as low as possible required by Blue Box to achieve “substantial reductions in trade‐distorting domestic supports”.

Suggested Citation

  • Jie Cheng & Laping Wu & Richard W. Dawson, 2008. "Blue Box Policy Reform in the Doha Round Negotiations: Effects and China's Position," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 16(5), pages 83-102, September.
    • Handle: RePEc:bla:chinae:v:16:y:2008:i:5:p:83-102
    DOI: 10.1111/j.1749-124X.2008.00131.x
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    References listed on IDEAS

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    1. Andrew Schmitz & Troy G. Schmitz & Frederick Rossi, 2006. "Agricultural Subsidies in Developed Countries: Impact on Global Welfare," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(3), pages 416-425.
    2. Brink, Lars, 2004. "Assessing Domestic Support Provisions Of The 2003 Draft Texts In Wto Agriculture Negotiations," Working Papers 14609, International Agricultural Trade Research Consortium.
    3. Andrew Schmitz & Troy G. Schmitz & Frederick Rossi, 2006. "Agricultural Subsidies in Developed Countries: Impact on Global Welfare ," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(3), pages 416-425.
    4. Johanns, Mike, 2007. "Transcript of Remarks and 2007 Farm Bill Proposals (Paper and PowerPoint)," Agricultural Outlook Forum 2007 8031, United States Department of Agriculture, Agricultural Outlook Forum.
    Full references (including those not matched with items on IDEAS)

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