Agricultural free trade and WTO concessions
The WTO’s agricultural agreement negotiated in the Uruguay Round initiated several essential steps towards freer trade for agricultural products comprising the introduction of tariff rate quotas. The Bachelor Thesis analyses the developments in terms of trade with regards to the WTO concessions.
Flühler Daniela & Rieder Anna Katharina, 2015
Bachelor Thesis, SALS-Schweiz
Betreuende Dozierende: Mathias Binswanger
Keywords: trade of agricultural goods, trade barriers, WTO concessions, tariff rate quotas, tariff under the quota, tariff out of the quota, full domestic supply, fruits, vegetables, meat
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On the basis of the WTO agricultural agreement, Switzerland allowed more market access and converted former trade barriers into tariff rate quotas. Notified tariff rate quotas regulate import and export behaviour in accordance with WTO agreements. In order to protect the domestic production, high out-of-quota tariff rates discourage imports while stimulating the production within Switzerland. The purpose of the Bachelor Thesis is to shine a light on the dynamics of trade of certain agricultural products.
In a frist step, seven agricultural products in the categories vegetables, fruits and meat were selceted. Secondly, Switzerland's current agricultural agreements as well as the WTO notified tariff rates and tariff quotas of the seven predetermined products were identified. The analysis comprised not only the development and dynamics in trade but also the correlation between domestic production and imports and their interplay with domestic demand. Significant results and furture prospects likewise were discussed with experts from trade associations and domestic producers.
In conclusion, the implementation of tariff rate quotas have not fundamentally altered trade of the predetermined products. Within the industry, tariff rate quotas are perceived as valuable and crucial to protect domestic production and their impact on imports was clearly visible. Nevertheless, the Bachelor Thesis identified dependencies of certain products on foreign trade in order to satisfy domestic demand. Particularly the import of loin cuts and half-carcasses cows increased disproportionate to domestic production and hence imports rose. A similar picture emerged with cherry tomatoes. Even though domestic production accumulated steadily, domestic supply only equaled domestic demand during certain periods in summer when cherry tomatoes harvest peaked. Contrarily, carrots, which are domestically produced throughout the year, are independent of imports and market access is only granted due to current WTO agricultural agreements. Domestic producers and trade associations perceive a threat in further negotiations on free trade agreements. They might result in the reduction or elimination of trade barriers and thus jeopardise domestic production of certain agricultural products.
Studiengang: Business Administration International Management (Bachelor)
Fachbereich der Arbeit: Volkswirtschaft