The authors would like to thank Luca Salvatici (University of Molise) and Hervé Guyomard (INRA) for their remarks on a first version of the paper. They also acknowledge the helpful comments from anonymous referees as well as the financial support by the Agricultural Trade Agreements (Tradeag) project, funded by the European Commission, DG Research (Specific Research Project, Contract no. 513666). The authors are solely responsible for the content of this paper.
On the European Responsibility in the Agricultural Multilateral Trade Negotiations: Modelling the Impacts of the Common Agricultural Policy
Version of Record online: 2 JUN 2009
© 2009 The Authors. Journal compilation © 2009 Blackwell Publishing Ltd
The World Economy
Volume 32, Issue 10, pages 1434–1460, October 2009
How to Cite
Femenia, F. and Gohin, A. (2009), On the European Responsibility in the Agricultural Multilateral Trade Negotiations: Modelling the Impacts of the Common Agricultural Policy. World Economy, 32: 1434–1460. doi: 10.1111/j.1467-9701.2009.01182.x
- Issue online: 22 OCT 2009
- Version of Record online: 2 JUN 2009
The present round of multilateral trade negotiations is still deadlocked over agricultural trade. The European Union (EU) is urged by its trading partners to open its agricultural markets. Economic evaluations of trade liberalisation scenarios unanimously conclude that a substantial opening of agricultural markets is required for a successful (welfare-improving) Doha Round. In this paper, we perform new evaluations to identify precisely the contributions of the European farm policy and to examine the robustness of these evaluations in the representation of this complex policy. Using the same specifications as in major previous studies, our first simulations show that the EU has a major responsibility in delivering significant gains to the developing countries. On the other hand, when we conduct the same experiments with a more relevant calibration and modelling of the European farm policy instruments, the gains that these developing countries may reap from the EU liberalisation are considerably reduced. Accordingly the current charge against the EU is simply inopportune.