12th Congress of the European Association of Agricultural Economists EAAE 2008 1 Modelling the impacts of multilateral agricultural trade liberalization on the EU

Abstract The objective of this paper is to explore the implications of domestic policy reforms and trade liberalisation on EU and global agricultural markets by utilising the GTAP model. The results suggest that CAP reforms in conjunction with the removal of export subsidies and tariff reductions according to the proposals from the EU and the US in the WTO would decrease EUs production, reduce EUs exports, and increase EUs imports in almost all the examined agricultural products. For countries such as Australia, the US, and the MERCOSUR group, higher world prices stimulate domestic agricultural production, partly offsetting the EU output decline. Key words EU, WTO, tariff reductions, expor