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12 - Modeling the effects on agriculture of protection in developing countries
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- By Dean A. Derosa, ADR International, Ltd
- Edited by Merlinda D. Ingco, The World Bank, L. Alan Winters, University of Sussex
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- Book:
- Agriculture and the New Trade Agenda
- Published online:
- 27 February 2010
- Print publication:
- 25 March 2004, pp 245-289
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Summary
Introduction
Developing countries have clear but differing interests in greater reform of international trade in agriculture. In low-income countries, agriculture still accounts for a substantial proportion of domestic output, and especially employment (see table 12.1).
In many developing countries, achieving sufficient domestic production plus imports of foodstuffs to sustain a healthy population – popularly termed “food security” – is of considerable concern, often, it is alleged, in the face of highly fluctuating commodity prices and uncertain export earnings. Indeed, food security concerns often give rise to market interventions and trade measures to promote domestic food production and control exports and imports of essential food commodities such as cereal grains.
However, further multilateral liberalization of agricultural trade and domestic economic policies would promote wider global integration of markets for agricultural goods. If such liberalization of trade and economic policies stabilized and even raised world prices for agricultural goods, internationally competitive producers in developing countries would benefit. What's more, both low-income and more advanced developing countries have considerable comparative advantage in a number of non-food agricultural goods and light manufactures. They could export such goods to finance food imports, offsetting periodic or persistent shortfalls in domestic food production.
Direct gains to consumers in developing countries are more problematic, depending upon the extent to which they benefit from artificially low prices for foodstuffs owing to production and export subsidies in industrial countries, and from international food aid.
2 - Increasing Protectionism and Its Implications for ASEAN-U.S. Economic Relations
- from PART I - ECONOMIC TRENDS
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- By Burnham O. Campbell, University of Hawaii, Dean A. DeRosa, International Monetary Fund Research Department Washington, D.C.
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- Book:
- ASEAN-U.S. Economic Relations
- Published by:
- ISEAS–Yusof Ishak Institute
- Published online:
- 21 October 2015
- Print publication:
- 01 January 1988, pp 24-64
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Summary
An often stated and widely held perception is that protectionism has been increasing. As at the recent Bali Meeting of ASEAN Foreign Ministers, this generally refers to increased protectionism by developed countries against the exports of developing countries. There is seldom any precise definition of what is meant by protectionism or any empirical evidence presented to support the contention that protectionism has increased. Certainly, the growth in exports from developing countries to industrial countries in general has slowed (or, in some instances, become negative) as has the growth of exports from ASEAN countries to the United States. However, this slow-down of trade could result from factors other than protection. For example, in the specific case of the United States and ASEAN, it could result from reduced U.S. growth, changed U.S. tastes, greater competition for ASEAN from other sources of exports to the United States, and ASEAN domestic policies adversely affecting ASEAN exports. Together, these factors could make the “bite” of protectionism seem greater regardless of whether protectionism has been increasing.
Why Might Protectionism Have Increased?
Barriers to international trade, especially in the form of tariffs, have been reduced significantly through concerted international policies over the past thirty years, particularly in industrial countries. The past decade, however, has witnessed increasing concern that protectionism is emerging again as a potential force, powerful enough to affect perceptively the growth of world trade. Apprehension about increasing application of non-tariff barriers, which are typically more discriminatory and less transparent than tariffs, is particularly widespread. As a preface to examining the record of increasing protectionism in the next section, this section considers why protectionism might be increasing in the United States and the ASEAN countries.
Before turning to consider circumstances bearing on protectionism in the United States and the ASEAN countries, it should be noted briefly that some important hypotheses have been advanced to explain “long” cycles in international trade relations.