IDEAS home Printed from https://ideas.repec.org/p/ags/srlewp/45992.html
   My bibliography  Save this paper

A CGE Analysis of the Harbinson Proposal: Outcomes for the EU25

Author

Listed:
  • Philippidis, George
  • Hubbard, Lionel J.
  • Renwick, Alan W.

Abstract

In this study, we employ the Harbinson proposal and July Framework to compare a ‘likely’ Doha scenario with an ‘inclusive’ baseline. The key aim is to assess the impacts across EU member states. More specifically, we (i) employ the latest version 6 of the GTAP database, (ii) explicitly model CAP mechanisms (e.g., quotas, decoupled payments, set-aside, CAP budget etc.) to more accurately assess the asymmetric trade led welfare effects on selected EU member states, and (iii) introduce binding overhangs into domestic support, export subsidies and more importantly market access commitments. Whilst the EU regions benefit from the multilateral reform proposals, the gains are weakened considerably by the tariff binding overhangs, where the EU25 only gain ten per cent of their potential trade led welfare gain from the proposals. On this basis, a more positive stance must be applied if the Doha Reforms are to yield a meaningful outcome for all.

Suggested Citation

  • Philippidis, George & Hubbard, Lionel J. & Renwick, Alan W., 2006. "A CGE Analysis of the Harbinson Proposal: Outcomes for the EU25," Working Papers 45992, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    • Handle: RePEc:ags:srlewp:45992
    DOI: 10.22004/ag.econ.45992
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/45992/files/Work5Renwick.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.45992?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Hertel, Thomas W., 1994. "The 'procompetitive' effects of trade policy reform in a small, open economy," Journal of International Economics, Elsevier, vol. 36(3-4), pages 391-411, May.
    2. Bach, Christian Friis & Ken Pearson, 1996. "Implementing Quotas in GTAP Using GEMPACK or How to Linearize an Inequality," GTAP Technical Papers 307, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    3. Will Martin & Kym Anderson, 2006. "Agricultural Trade Reform and the Doha Development Agenda," World Bank Publications - Books, The World Bank Group, number 6889.
    4. Markus Lips & Peter Rieder, 2005. "Abolition of Raw Milk Quota in the European Union: A CGE Analysis at the Member Country Level," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(1), pages 1-17, March.
    5. Alan Swinbank, 2005. "Developments in the Doha Round and WTO dispute settlement: some implications for EU agricultural policy," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 32(4), pages 551-561, December.
    6. S¯ren E. Frandsen & Hans G. Jensen & Wusheng Yu & Aage Walter-J¯rgensen, 2003. "Reform of EU sugar policy: price cuts versus quota reductions," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 30(1), pages 1-26, March.
    7. McDougall, Robert, 2000. "A New Regional Household Demand System for GTAP," GTAP Working Papers 404, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    8. Chad E. Hart & John C. Beghin, 2004. "Rethinking Agricultural Domestic Support under the World Trade Organization," Center for Agricultural and Rural Development (CARD) Publications 04-bp43, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    9. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
    10. G Philippidis & L J Hubbard, 2003. "Agenda 2000 Reform of the CAP and its Impacts on Member Member States: A Note," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(3), pages 479-486, November.
    11. Patrick Messerlin & Bernard Hoekman, 2006. "Removing the Exception of Agricultural Export Subsidies," SciencePo Working papers Main hal-03569311, HAL.
    12. McDougall, Robert A., 2000. "A New Regional Household Demand System for GTAP," Working papers 283446, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    13. Giovanni Anania & Jean-Christophe Bureau, 2005. "The negotiations on agriculture in the Doha Development Agenda Round: current status and future prospects," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 32(4), pages 539-574, December.
    14. McCorriston, Steve & MacLaren, Donald, 2005. "Trade and Welfare Effects of State Trading Enterprises," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24523, European Association of Agricultural Economists.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. G. Philippidis & L. J. Hubbard & A. Renwick, 2007. "Re‐evaluating the Harbinson Proposal – Prospects for the EU25: A Note," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(2), pages 368-375, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Philippidis, George, 2005. "Agricultural trade liberalisation in the Doha Round: impacts on Spain," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 5(10), pages 1-28.
    2. Anania, Giovanni, 2007. "Multilateral Negotiations, Preferential Trade Agreements and the CAP. What's Ahead?," Working Papers 7283, TRADEAG - Agricultural Trade Agreements.
    3. Giovanni Anania, 2007. "Multilateral trade negotiations, preferential trade agreements and European Union’s agricultural policies," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 3, July.
    4. Hertel, Thomas, 2013. "Global Applied General Equilibrium Analysis Using the Global Trade Analysis Project Framework," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 815-876, Elsevier.
    5. Butault, Jean-Pierre & Bureau, Jean-Christophe, 2006. "WTO Constraints and the CAP: Domestic Support in EU-25 Agriculture," Working Papers 18879, TRADEAG - Agricultural Trade Agreements.
    6. George Philippidis & Hubbard Lionel, 2003. "Varietal Utility and Patriotic Preference: The Cas of European Agriculture," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 66, pages 5-25.
    7. Ken Itakura, . "Calibrating the Mix of Electric Power Generation Types," Chapters,, Economic Research Institute for ASEAN and East Asia (ERIA).
    8. Chad E. Hart & John C. Beghin, 2004. "Rethinking Agricultural Domestic Support under the World Trade Organization," Center for Agricultural and Rural Development (CARD) Publications 04-bp43, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    9. Philippidis, G. & Hubbard, L. J., 2001. "The economic cost of the CAP revisited," Agricultural Economics, Blackwell, vol. 25(2-3), pages 375-385, September.
    10. Philippidis, George & Waschik, Robert, 2016. "Removal of EU Milk Quotas Using a CGE Model with Imperfect Competition and Heterogeneous Firms," Conference papers 332682, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    11. Gabriela Ortiz Valverde & Maria C. Latorre, 2020. "A computable general equilibrium analysis of Brexit: Barriers to trade and immigration restrictions," The World Economy, Wiley Blackwell, vol. 43(3), pages 705-728, March.
    12. Will Martin & Kym Anderson, 2006. "Agricultural Trade Reform and the Doha Development Agenda," World Bank Publications - Books, The World Bank Group, number 6889.
    13. Ken Itakura, 2011. "The Economic Consequences of Shifting Away From Nuclear Energy," Working Papers PB-2011-04, Economic Research Institute for ASEAN and East Asia (ERIA).
    14. Will Martin & Kym Anderson, 2008. "Agricultural trade reform under the Doha Agenda: some key issues ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(1), pages 1-16, March.
    15. Eddy Bekkers & Joseph F. Francois & Hugo Rojas†Romagosa, 2018. "Melting Ice Caps and the Economic Impact of Opening the Northern Sea Route," Economic Journal, Royal Economic Society, vol. 128(610), pages 1095-1127, May.
    16. Michał BURZYŃSKI, 2014. "Trading Goods or Human Capital The Winners and Losers of Economic Integration," LIDAM Discussion Papers IRES 2014022, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    17. Moon, Wanki, 2010. "Multifunctional Agriculture, Protectionism, And Prospect Of Trade Liberalization," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 33(2), pages 1-33, July.
    18. Moon, Wanki, 2011. "Is agriculture compatible with free trade?," Ecological Economics, Elsevier, vol. 71(C), pages 13-24.
    19. George Philippidis & Lionel Hubbard, 2003. "Modelling hierarchical consumer preferences: an application to global food markets," Applied Economics, Taylor & Francis Journals, vol. 35(15), pages 1679-1687.
    20. Rae, Allan N. & Strutt, Anna, 2007. "The WTO, Agricultural Trade Reform and the Environment: Nitrogen and Agro-chemical Indicators for the OECD," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 8(1), pages 1-22.

    More about this item

    Keywords

    Research Methods/ Statistical Methods;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:srlewp:45992. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/lesacuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.