Groundnut trade liberalization: Could the South help the south?
Economics, Center for Agricultural and Rural Development
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This paper analyzes policies affecting global groundnut-products markets. The new US groundnut policy is now a minor source of distortion in world markets where India and China stand out as the major distorters. We analyze and quantify the effects of groundnut-products trade liberalization on consumer welfare and producer income. Our analysis shows that African exporters would gain significantly from reductions in protection and subsidies in India, and to a lesser extent, China, although China’s exports of food-quality groundnuts would expand dramatically. Net-importing OECD countries would suffer from higher world prices. The paper draws direct implications for the Doha trade negotiations.
Beghin, John; Diop, Ndiame; and Matthey, Holger, "Groundnut trade liberalization: Could the South help the south?" (2006). Economics Publications. 292.