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08 Jun 2006

The Effects of Trade Liberalisation on Agriculture in Smaller Developing Countries: Implications for the Doha Round

Andreas Schneider / David Kernohan

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The Doha negotiations have renewed interest in the effects of liberalisation of markets on developing countries. Middle-income developing countries stand to gain more because the commodity composition of their exports is such that they will gain substantially in large commodity markets, while lower-income countries need additional help to take advantage of new opportunities in smaller or niche markets. This study looks at whether and how smaller developing countries’ agricultural production systems can benefit from participation in trade, in terms of acquiring practical skills and techniques, as well as from the macroeconomic improvement brought about by adopting sound trade policies and practicing good governance.