A computable general equilibrium analysis of agricultural liberalisation: The Uruguay Round and Common Agricultural Policy reform

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Authors: Blake, A.T., Rayner, A.J. and Reed, G.V.

Journal: Journal of Agricultural Economics

Volume: 50

Issue: 3

Pages: 400-424

ISSN: 0021-857X

This paper uses a computable general equilibrium model to assess the effects of the Uruguay Round (UR) and CAP reform. Detailed attention is given to the impact of the agricultural components of the UR and of the CAP reform on the agricultural and food-processing sectors of the EU. The CGE model used, while based on the standard Global Trade Analysis Project (GTAP) model, uses a more detailed representation of the UR and CAP policy changes than is usual in GTAP analyses of the UR effects. In so doing it assumes a degree of specificity of factors used in agriculture and makes appropriate agricultural policy variables endogenous. Finally, it assesses the consequences of assuming imperfect competition in all non-agricultural sectors.

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