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World Agricultural Trade Reform: Implications for Australia

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  • Horridge, Mark
  • Pearce, David
  • Walker, Agnes

Abstract

In this paper we assess the implications of agricultural trade reform by GATT member countries. To do this, we link two general equilibrium models, a world food trade model and the ORANI model of the Australian economy. By treating the ORANI models as an integral part of the world model, we are able to focus on the implications for Australia of old agricultural trade reform. The findings suggest that, if price distorting agricultural policies were removed by GATT member countries, world food commodity prices would rise, some by up to 30 percent, and world food trade expand by about a third. Australia would be a major beneficiary of these international developments, the value of its agricultural exports rising by close to 15 percent. In 1986, this would have meant for Australia additional export earnings of around $US750 million, as well as more rapid economic growth. Copyright 1990 by The Economic Society of Australia.

Suggested Citation

  • Horridge, Mark & Pearce, David & Walker, Agnes, 1990. "World Agricultural Trade Reform: Implications for Australia," The Economic Record, The Economic Society of Australia, vol. 66(194), pages 235-248, September.
    • Handle: RePEc:bla:ecorec:v:66:y:1990:i:194:p:235-48
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    Cited by:

    1. D. MacLaren, 1991. "Agricultural Trade Policy Analysis And International Trade Theory: A Review Of Recent Developments," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(3), pages 250-297, September.
    2. Mark Horridge & David Pearce, 1988. "Modelling the Effects on Australia of Interventions in World Agricultural Trade," Centre of Policy Studies/IMPACT Centre Working Papers op-65, Victoria University, Centre of Policy Studies/IMPACT Centre.
    3. Rodney Tyers, 1991. "On The Neglect Of Dynamics, Risk And Market Insulation In The Analysis Of Uruguay Round Food Trade Reforms," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 35(3), pages 295-313, December.
    4. McCalla, Alex F., 1992. "GATT, Preferential/Regional Trading Blocks and Agricultural Trade," 1992 Conference (36th), February 10-13, 1992, Canberra, Australia 146544, Australian Agricultural and Resource Economics Society.
    5. Tyers, Rod, 1992. "Searching under the Light: The Neglect of Dynamics and Risk in the Analysis of Food Trade Reforms," 1992 Occasional Paper Series No. 6 197873, International Association of Agricultural Economists.
    6. Gerritsen, Rolf, 1992. "Labor's Final Rural "Crisis"?: Australian Rural Policy in 1990 and 1991," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 60(02), pages 1-17, August.

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