The relative importance of global agricultural subsidies and tariffs, revisited

Kym Anderson, Erwin Corong, Anna Strutt and Ernesto Valenzuela

Departmental Working Papers from The Australian National University, Arndt-Corden Department of Economics

Abstract: Over the past three decades, tariff protection to farmers has fallen and partly been replaced by domestic support, whilst support for farmers in some emerging economies has grown. Against that backdrop, this paper provides new estimates of national economic impacts of global agricultural tariffs and domestic supports. Using the latest global economywide GTAP (Global Trade Analysis Project) model calibrated to 2017, we simulate (a) the removal of food and agricultural domestic supports and agri-food tariffs and (b) the removal also of tariffs on imports of non-agricultural goods. We find that agricultural support policies are still an important part of the global welfare cost of all goods’ trade-restrictive policies (albeit only half as costly as in 2001), and tariffs still dominate the global welfare cost of all farm-support programs. That farm support could be re-instrumented to relieve natural resource and environmental stresses, boost food and nutrition security, and alleviate poverty and income inequality.

Keywords: Distortions to agricultural incentives; Domestic support; Agricultural market access restrictions (search for similar items in EconPapers)
JEL-codes: F13 F14 O13 Q17 Q18 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2023
New Economics Papers: this item is included in nep-agr and nep-int
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Related works:
Journal Article: The Relative Importance of Global Agricultural Subsidies and Tariffs, Revisited (2023)
Working Paper: The Relative Importance of Global Agricultural Subsidies and Tariffs, Revisited (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:pas:papers:2023-03

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