Implications of Domestic Support Disciplines for Further Agricultural Trade Liberalization

30 Pages Posted: 7 Aug 2006

See all articles by Keith Walsh

Keith Walsh

Revenue Commissioners; IIIS

Martina Brockmeier

University of Hohenheim

Alan Matthews

Trinity College (Dublin) - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: October 2005


This paper employs the GTAP computable general equilibrium model and dataset to analyse the implications of domestic support reductions in the context of agricultural trade liberalisation. Three specific issues are addressed: overhang in domestic support, the accurate distinction of the boxes in the GTAP dataset and the treatment of market price support in the amber box. An extensive domestic support database is used to calculate the change in applied domestic support rates from a specified cut in bound rates, and to identify the impact on the different domestic support boxes and the required reductions in each support category. The GTAP model is extended to incorporate an explicit representation of the market price support element of the AMS. The results from these extensions of the standard database and model support the view that the impact of an agreement to reduce domestic support will be limited and lower than conventionally estimated. Results of simulations combining domestic support cuts with market access and export competition disciplines show that the effect of import tariff reductions dominate the gains from domestic support cuts once full account is taken of the issues addressed in this paper.

Keywords: WTO agricultural negotiations, domestic support, agricultural protection, Aggregate Measure of Support

JEL Classification: C68, F13, Q17, Q18

Suggested Citation

Walsh, Keith and Brockmeier, Martina and Matthews, Alan, Implications of Domestic Support Disciplines for Further Agricultural Trade Liberalization (October 2005). IIIS Discussion Paper No. 99, Available at SSRN: or

Keith Walsh

Revenue Commissioners ( email )

Dublin Castle
Dublin 2


IIIS ( email )

The Sutherland Centre, Level 6, Arts Building
Trinity College
Dublin 2

Martina Brockmeier

University of Hohenheim ( email )

International Agricultural Trade and Food Security
Stuttgart, 70599

Alan Matthews (Contact Author)

Trinity College (Dublin) - Department of Economics ( email )

Dublin 2
+00353 1 896 1069 (Phone)
+00353 1 677 2503 (Fax)


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