Trade liberalization and state support of agriculture: effects for developing countries
2014
Erokhin, V. | Ivolga, A. | Heijman, W.J.M.
The paper aims at the overview of the main approaches of state support implemented by developed and developing countries and the assessment of their distorting influences on the trade with agricultural commodities. The current state of state support is analyzed on the examples of EU-27, the USA and Japan. The experiences of developing countries are summarized on the examples of China, Russia and the CIS countries. State support tools are grouped according to the WTO classification. The alternative classification is implemented in order to compare the distorting effects caused by the state support. The EPACIS model is implemented to analyze the effects of trade liberalization for the distribution of agricultural commodities and trade policies in developing countries. The model is adjusted in order to assess the effects of state support for the production and trade with agricultural commodities in developing countries, recently accessed the WTO (the case of Russia). Imitation calculations allow formulating policies for the developing agricultural markets depending on the degrees of their sensitivity to foreign trade regulations and domestic support.
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