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WTO Agricultural Negotiations: a comparison of the Harbinson proposal and the Swiss Formula

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The WTO negotiations of the Doha round are a key issue in the public debate. This paper analysis the effects of different market access option on the basis of general equilibrium model. An extended version of the GTAP model is used to firstly project a base run including the Agenda 2000, the EU enlargement, the EBA agreement and the MTR. The policy simula-tion includes the WTO negotiations. Here, it is differentiated between three different experi-ments. While the first experiment simply implements the HARBINSON 1½ proposal, the sec-ond one additionally takes into account an adoption of the EBA agreement by all industrial-ized countries. In the third experiment, the tariff cuts are based on the Swiss Formula using a coefficient of 33 instead of the tiered approach of HARBINSON. Based on the experiments, it can be shown that world wide the high protected sectors experiences severe losses relative to the application of the HARBINSON 1½ approach. The comparison also shows that the highly protected beef and other processed food products sectors of the EU are particularly affected by the Swiss Formula.

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  • Martina Brockmeier & Marianne Kurzweil & Janine Pelikan & Petra Salamon, 2005. "WTO Agricultural Negotiations: a comparison of the Harbinson proposal and the Swiss Formula," ENARPRI Working Papers 012, ENARPRI (European Network of Agricultural and Rural Policy Research Institutes).
    • Handle: RePEc:ena:enawpp:012
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    1. 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.
    2. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    3. Brockmeier, Martina & Salamon, Petra, 2004. "Handels- und Budgeteffekte der WTO-Agrarverhandlungen in der Doha-Runde: Der revidierte Harbinson-Vorschlag," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 53(06), pages 1-19.
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    1. Brockmeier, Martina & Sommer, Ulrich & Thomsen, Karin, 2005. "Sugar Policies: An Invincible Bastion for Modelers?," 89th Seminar, February 2-5, 2005, Parma, Italy 232588, European Association of Agricultural Economists.

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