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Dispelling Some Misconceptions about Agricultural Trade Liberalization

Dispelling Some Misconceptions about Agricultural Trade Liberalization 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Economic Perspectives American Economic Association

Dispelling Some Misconceptions about Agricultural Trade Liberalization

Journal of Economic Perspectives , Volume 22 (1) – Mar 1, 2008

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References (24)

Publisher
American Economic Association
Copyright
Copyright © 2008 by the American Economic Association
Subject
Articles
ISSN
0895-3309
DOI
10.1257/jep.22.1.199
Publisher site
See Article on Publisher Site

Abstract

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.

Journal

Journal of Economic PerspectivesAmerican Economic Association

Published: Mar 1, 2008

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