Agricultural policy and trade reform. Potential effects at global, national and household levels

A recent report shows that a simultaneous reform involving a halving of trade protection and domestic support across all sectors could potentially generate $44 billion in welfare gains globally. Most of these gains arise from agricultural reform and most of these agricultural gains come from reform of market access measures.

The report finds that almost all countries gain overall. Those with the highest levels of support and protection would benefit most from such reforms. The most efficient agricultural exporters would also gain significantly. But for many developing economies the immediate benefits would be relatively small and would be concentrated more in manufacturing than in agricultural trade.

Agriculture policy and trade reform: potential effects at global, national and household levels, assesses the impact of greater liberalisation on producers and consumers. By identifying the groups who may become worse off following such reforms, the report gives governments the opportunity to design policies to help them adjust.

Website: OECD iLibrary http://www.oecd-ilibrary.org/

OECD: Agricultural policy and trade reform - Overview http://www.oecdbookshop.org/oecd/display.asp?lang=EN&sf1=identifiers&st1=512006071e1

---