The Impact of Trade Agreements on Livestock Producers

Abstract

Growth in per capita supply of livestock products in developing countries during the last decade is associated with even faster growth of imports, particularly those of pig and poultry meat. Some developing countries are net exporters of livestock products. The theory of comparative advantage emphasises the global benefits of trade liberalisation and the damage caused by tariffs and other trade barriers. High tariffs remain in the EU, USA and Japan despite the negotiations of the WTO aimed at re ducing trade barriers. However, it is estimated that even if all such barriers were removed, the impact on developing countries, as a group, would be relatively small. The SPS Agreement of the WTO is aimed at international harmonisation of health and sanitary standards and the resolution of associated trade disputes. Developing countries face resource constraints in meeting the standards demanded by industrialised country importers. Similarly standards for environmental protection, animal welfar e and other non-market attributes of agricultural products may require harmonisation within the WTO.