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Additional resources for Agriculture And Development: The Case for Policy Coherence
The studies generally suggest that the distribution of the global gains are shared relatively equally between developed and developing countries, in the range of 4065%. An important point is that the major source of the gains accruing to each group arises from its own liberalisation, rather than that of partner countries. Put another way, the studies suggest that the costs of OECD agricultural protectionism for developing countries may be less than the costs developing countries impose on themselves through their own trade-distorting policies.
It is argued that these restrictive features often lead to underutilisation of preferences and help to explain their limited development impact to date. AGRICULTURE AND DEVELOPMENT: THE CASE FOR POLICY COHERENCE – ISBN-92-64-01334-2 © OECD 2005 3. POLICY COHERENCE BETWEEN OECD COUNTRY AGRICULTURAL TRADE POLICIES… – 49 A recent empirical study of the utilisation of EU and US preferences suggests that, at least in the case of agricultural and food products, preferences have been highly used (OECD, 2004c).
Rather than attempt to systematically compare the results from individual studies, some broad generalisations are highlighted here (for a comparative review of recent studies on which some of these generalisations are based, see UNCTAD, 2003a, Chapter V and Anderson, 2004). In the context of static, constant returns to scale AGE models, the global gains from (full) agricultural trade liberalisation are at least as great as those achievable from trade liberalisation in manufactures, with a number of studies suggesting that agriculture contributes two-thirds of the global gains from liberalising all merchandise trade.