Economy in Africa and the Middle East

Economy in Africa - This is changing however During the 1994 Uruguay round non-tariff barriers on agriculture were converted to tariffs with the

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This is changing, however. During the 1994 Uruguay round, non-tariff barriers on agriculture were converted to tariffs, with the intention of reducing these tariffs in the future. Furthermore, during the 2001 Doha Round, the issue of agriculture was one of the dominant issues on the agenda. However, the Doha Round has been stalled since it began and very little progress has been made in lowering agricultural tariffs in the developed world. Domestic pressure, particularly in the EU plays a major role – farmers in the EU are very politically active and attempt to block any moves towards lowering the tariffs. Furthermore, the US and EU provide large government subsidies to the agricultural sector, particularly in the form of price supports. In areas like dairy products and corn, for example, the US guarantees a minimum price for these products – farmers have an incentive to produce as much as possible, since supply and demand don’t need to be factored in. In many cases, particularly with corn, a surplus is generated – the US then
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This note was uploaded on 11/27/2011 for the course POLISCI 1003 taught by Professor Olson during the Fall '11 term at GWU.

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