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  • The Relative Importance of Global Agricultural Subsidies and Tariffs, Revisited

  • Kym Anderson, Erwin Corong, Anna Strutt, Ernesto Valenzuela
  • Journal:
    World Trade Review / Volume 22 / Issue 3-4 / October 2023
    Published online by Cambridge University Press:
    05 September 2023, pp. 382-394
    Print publication:
    October 2023
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  • Over the past three decades, tariff protection to farmers has fallen and partly been replaced by domestic support, whilst support for farmers in some emerging economies has grown. Against that backdrop, this paper provides new estimates of national economic impacts of global agricultural tariffs and domestic supports. Using the latest global economy-wide GTAP (Global Trade Analysis Project) model calibrated to 2017, we simulate (a) the removal of food and agricultural domestic supports and agri-food tariffs and (b) the removal also of tariffs on imports of non-agricultural goods. We find that agricultural support policies are still an important part of the global welfare cost of all goods’ trade-restrictive policies (albeit only half as costly as in 2001), and tariffs still dominate the global welfare cost of all farm-support programs. That farm support could be re-instrumented to relieve natural resource and environmental stresses, boost food and nutrition security, and alleviate poverty and income inequality.