The effect of WTO and FTAA on agriculture and the rural sector in Latin America
In this paper we analyze the effect on output, employment and poverty of two (2) alternative versions of further trade liberalization -- one representing free trade world wide (WTO) and the other a Western hemisphere free trade bloc (FTAA). The paper introduces international commodity price changes...
| Main Authors: | , |
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| Format: | Artículo preliminar |
| Language: | Inglés |
| Published: |
International Food Policy Research Institute
2004
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/155676 |
| _version_ | 1855540890116816896 |
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| author | Morley, Samuel Piñeiro, Valeria |
| author_browse | Morley, Samuel Piñeiro, Valeria |
| author_facet | Morley, Samuel Piñeiro, Valeria |
| author_sort | Morley, Samuel |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | In this paper we analyze the effect on output, employment and poverty of two (2) alternative versions of further trade liberalization -- one representing free trade world wide (WTO) and the other a Western hemisphere free trade bloc (FTAA). The paper introduces international commodity price changes derived from a world model into national Computable General Equilibrium (CGE) and microsimulation models for fifteen (15) Latin American countries to estimate how FTAA and WTO would affect sectoral output, employment, wages and poverty levels at the national level for each of the countries. We found that either of these two alternatives is expansionary for both output and employment in general and for agriculture in particular in most Latin American countries. WTO particularly favors the rural sector because the elimination of producer subsidies in developed countries causes a big increase in prices of all food commodities, especially on grains, dairy products and milk. As a result we found that in general, trade liberalizationreduced skill differentials, both within the urban sector, and where we had the information, between the rural and urban unskilled. Finally, the poverty microsimulation exercise showed that the poor are helped by either WTO or FTAA. Either version reduces poverty and inequality, and the changes are especially significant under the WTO. Clearly the rural poor pay a fairly heavy price for the producer subsidies in developed countries. |
| format | Artículo preliminar |
| id | CGSpace155676 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2004 |
| publishDateRange | 2004 |
| publishDateSort | 2004 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1556762025-11-06T07:23:36Z The effect of WTO and FTAA on agriculture and the rural sector in Latin America Morley, Samuel Piñeiro, Valeria wto trade liberalization prices employment poverty rural population urban population subsidies In this paper we analyze the effect on output, employment and poverty of two (2) alternative versions of further trade liberalization -- one representing free trade world wide (WTO) and the other a Western hemisphere free trade bloc (FTAA). The paper introduces international commodity price changes derived from a world model into national Computable General Equilibrium (CGE) and microsimulation models for fifteen (15) Latin American countries to estimate how FTAA and WTO would affect sectoral output, employment, wages and poverty levels at the national level for each of the countries. We found that either of these two alternatives is expansionary for both output and employment in general and for agriculture in particular in most Latin American countries. WTO particularly favors the rural sector because the elimination of producer subsidies in developed countries causes a big increase in prices of all food commodities, especially on grains, dairy products and milk. As a result we found that in general, trade liberalizationreduced skill differentials, both within the urban sector, and where we had the information, between the rural and urban unskilled. Finally, the poverty microsimulation exercise showed that the poor are helped by either WTO or FTAA. Either version reduces poverty and inequality, and the changes are especially significant under the WTO. Clearly the rural poor pay a fairly heavy price for the producer subsidies in developed countries. 2004 2024-10-24T12:42:25Z 2024-10-24T12:42:25Z Working Paper https://hdl.handle.net/10568/155676 en Open Access application/pdf International Food Policy Research Institute Morley, Samuel; Piñeiro, Valeria. 2004. The effect of WTO and FTAA on agriculture and the rural sector in Latin America. DSGD Discussion Paper 3. https://hdl.handle.net/10568/155676 |
| spellingShingle | wto trade liberalization prices employment poverty rural population urban population subsidies Morley, Samuel Piñeiro, Valeria The effect of WTO and FTAA on agriculture and the rural sector in Latin America |
| title | The effect of WTO and FTAA on agriculture and the rural sector in Latin America |
| title_full | The effect of WTO and FTAA on agriculture and the rural sector in Latin America |
| title_fullStr | The effect of WTO and FTAA on agriculture and the rural sector in Latin America |
| title_full_unstemmed | The effect of WTO and FTAA on agriculture and the rural sector in Latin America |
| title_short | The effect of WTO and FTAA on agriculture and the rural sector in Latin America |
| title_sort | effect of wto and ftaa on agriculture and the rural sector in latin america |
| topic | wto trade liberalization prices employment poverty rural population urban population subsidies |
| url | https://hdl.handle.net/10568/155676 |
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