Journal of Economic Perspectives
ISSN 0895-3309 (Print) | ISSN 1944-7965 (Online)
Dispelling Some Misconceptions about Agricultural Trade Liberalization
Journal of Economic Perspectives
vol. 22,
no. 1, Winter 2008
(pp. 199–216)
(Complimentary)
Abstract
There has been a great deal of public discussion over the impact that agricultural trade liberalization would likely have, especially on low-income countries. Unfortunately, the public discussion has been characterized by a number of misconceptions. This paper provides a clarifying discussion of the issues involved. Among the key points addressed are 1) agricultural "subsidies" are not nearly as large as has been portrayed; 2) tariffs are actually far more distortionary than subsidies and some low-income countries actually benefit from rich country subsides; and 3) widespread tariff reductions will not inflict large damage on developing countries as a result of preference erosion. The case for removing agricultural trade barriers remains compelling, even without the exaggerations and misconceptions.Citation
Tokarick, Stephen. 2008. "Dispelling Some Misconceptions about Agricultural Trade Liberalization." Journal of Economic Perspectives, 22 (1): 199–216. DOI: 10.1257/jep.22.1.199JEL Classification
- F13 Trade Policy; International Trade Organizations
- O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
- O19 International Linkages to Development; Role of International Organizations
- Q17 Agriculture in International Trade
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