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The Impacts of WTO Export Subsidy Abolition on the Agri-food Industry in the EU: A Preliminary Assessment

Author

Listed:
  • Kerkelä, Leena
  • Lehtonen, Heikki
  • Niemi, Jyrki

Abstract

As a part of agricultural negotiations, the WTO members have agreed to phase out all forms of export subsidies. This study evaluates the current level and commitments of subsidised export quantities and subsidy expenditures of the EU, which is by far the largest user of export subsidies. The effects of removing subsidies are studied by a multi-region general equilibrium model GTAP on world-wide, EU wide and on the level of the Finnish agriculture. The results show decreasing prices and production in the EU for subsidised products especially in dairy, grain and meat production and slight increases in their world market prices. The effects for Finland are magnified compared to the rest of the EU and are seen especially in grains production.

Suggested Citation

  • Kerkelä, Leena & Lehtonen, Heikki & Niemi, Jyrki, 2005. "The Impacts of WTO Export Subsidy Abolition on the Agri-food Industry in the EU: A Preliminary Assessment," Discussion Papers 375, VATT Institute for Economic Research.
    • Handle: RePEc:fer:dpaper:375
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    File URL: https://www.doria.fi/handle/10024/148354
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    Cited by:

    1. Cheptea, Angela & Gohin, Alexandre & Huchet Bourdon, Marilyne, 2008. "Applying the gravity approach to sector trade: Who bears the trade costs?," Conference papers 331671, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Anderson, Kym & Yao, Shunli, 2001. "China, GMOs and World Trade in Agricultural and Textile Products," Conference papers 330922, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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