Agricultural support -- Implications for industry adjustment

Summary

Governments are often reluctant to lower trade barriers and reduce support for highly protected industries. The resistance to reform has been evident in discussions for a new Round of WTO trade negotiations. A recent RIRDC study addressed the issue of industry adjustment to trade related policy reform. A key finding of the study was that industry performance often improves after a period of adjustment. This suggests that highly protected industries may have slower rates of productivity growth and performance improvements. Farmers in the protected industry may be experiencing a long term decline in their relative competitiveness. The outocomes of this project are: An improved understanding of how trade protection and domestic support affects the economic performance and development of agricultural industries. Advice for policy makers in developing countries on the implications of trade protection for industry development. Evidence of how protection can cause industry development to stagnate in order to encourage internal pressures for policy reform in protected industries.

Program

National Rural Issues

Research Organisation

D. N. Harris & Associates

Objective Summary

Compare structural adjustment and economic performance in highly protected industries in the developed economies to industry performance in countries that do not provide support. Investigate the distribution of financial transfers from policy support measures between small scale family farms and large scale commercialised farming operations.

Project Code

PRJ-000702

Project Stage

Closed

Project Start Date

Saturday, September 30, 2006

Project Completion Date

Wednesday, December 24, 2008

Journal Articles From Project

Not Available

National Priority

An environmentally sustainable Australia

National Priority

Advanced Technology

National Priority

NRI-National Rural Issues

Contact

Related publications

03.08.09

Agricultural Industry support and structural adjustment