A Quantitative Analysis of Trade Policy Responses to High Agricultural Commodity Prices

In order to mitigate the food commodity price pressure on domestic markets in the 2007/08 marketing year, major exporting and importing countries, most of them developing economies, have adopted some trade policy changes such as imposing export bans (or raising restrictions) and reducing import tariffs. This paper evaluates the impact of those policies on the world price and trade of major agricultural commodities. We quantify the changes in prices, trade, production, and consumption by using a set of multi-country, multi-commodity, and partial-equilibrium models. Results show that most commodity prices increase when these trade policies are exercised. Rice price is distorted the most, followed by wheat and barley. The impact on the aggregate trade varies by commodities. Our analysis illustrates that the inefficient trade policies actually worsen the price inflation rather than solving the issue.


Issue Date:
2009
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/51805
Total Pages:
24
Note:
Replaced with revised version of paper 07/24/09.
Series Statement:
Contributed Paper
734




 Record created 2017-04-01, last modified 2017-08-25

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