Evaluate the Counter Effect of Border Measures and Domestic Support in Iran’s Agriculture

مجله اقتصاد و توسعه کشاورزی

Article 12, Volume 24, Issue 2, July 2010   

Document Type: Research Article

DOI: 10.22067/jead2.v1389i2.3941

Authors

O. Gilanpour^{* 1}; M. Hejazi²

¹Tehran

²University of Wyoming

Abstract

One of the unique characteristic of agricultural agreement is to order the countries to accept the commitments in three different areas such as domestic support, market access and export subsidy. Although the main goal of this type of classification is the reduction of distortion interventions of trade, but indicates that the agricultural agreement has special attention to political tools against the trade effects of agricultural policies. Whereas it is expected that the attention to the trade effects of policies must has more priority. This subject has been taken into consideration by researches formerly, yet in this paper a method is presented for the first time, to measure the amount of reciprocal effect in two areas, market access and domestic support. The result of this essay shows that in Iran like countries such as U.S and Canada the government supports some of agricultural producers with applying border and domestic support at the same time. Disregarding to this stimulatingly causes under estimation of domestic price support about %161. This result confirmed the conclusions of Anania (1997), Gurter and Ingco (2002) that are based upon the impressionability of domestic support from border policies and the necessity of redefine of amber box. But it is against the conclusion of Anania (1997) that is based upon over estimation of aggregate measurement support because of stimulating of these policies.

JEL: Q18, Q17, F13

Keywords

Agreement of Agriculture; Aggregate Measurement Support; Trading Policies; Amber Box; Iran CLASSIFICATION