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Adjustment Options and Strategies in the Context of Agricultural Policy Reform and Trade Liberalisation

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  • Osamu Kubota

    (OECD)

Abstract

Reforming agricultural policies by reducing distorting support improves economic efficiency as a whole through a better allocation of resources. This implies that adjustment may have adverse effects on some agricultural households and other people engaged in the sector, in particular in the short term. There may also be negative impacts on upstream and downstream sectors and on regional economies that rely on commodities whose prices and production levels fall with reductions in support and protection. Despite pressures to reform to meet multilateral and bilateral trade commitments and to respond to budgetary constraints, these adverse impacts are a major reason why governments find it difficult to make progress in policy reform.

Suggested Citation

  • Osamu Kubota, 2007. "Adjustment Options and Strategies in the Context of Agricultural Policy Reform and Trade Liberalisation," OECD Food, Agriculture and Fisheries Papers 4, OECD Publishing.
    • Handle: RePEc:oec:agraaa:4-en
    DOI: 10.1787/124462320780
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    Cited by:

    1. John Davis & Paul Caskie & Michael Wallace, 2013. "How Effective are New Entrant Schemes for Farmers?," EuroChoices, The Agricultural Economics Society, vol. 12(3), pages 32-37, December.

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