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Agricultural Reforms and Use of Market Mechanisms for Risk Management

Alizadeh-Masoodian, A. and Nomikos, N. (2005). Agricultural Reforms and Use of Market Mechanisms for Risk Management. Cass Business School, City University London.

Abstract

In July 2004, the Members of the World Trade Organisation (WTO) unanimously agreedon a framework for liberalising farm trade under the Doha Development Agenda with a view to establishing a fair and market-orientated trading system. The ultimate objective is to promote living standards, employment and sustainable development around the
world, particularly in developing countries, through a process of fundamental reform. The key ingredients of this process are substantial reductions in trade-distorting domestic support, the elimination of all forms of export subsidisation by an agreed date, and a further opening-up of agricultural markets.
The European Community has already taken importantunilateral steps in that direction, most recently through the introduction of the Single Farm Payment scheme agreed under the 2003 Mid-term Review of the Common Agricultural Policy. This policy change coupled with the reforms that will result from the WTO negotiations will expose European farmers, like farmers in other countries, more prominently to market forces. The present report provides an important analysis of the opportunities and challenges ahead for the European farm community in adapting to the new policy environment. It also provides guidance for farmers, agro-industries and policy markets with respect to effective risk management strategies designed to facilitate smooth adjustment and a soft landing as these reforms are being implemented. Finally, the report highlights a few important areas which need to be further explored in the quest for instruments to facilitatea successful liberalisation of agricultural markets in Europe.

Publication Type: Report
Publisher Keywords: agriculture; agricultural reforms; agricultural markets; agricultural subsidies;
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Departments: Cass Business School > Finance
URI: http://openaccess.city.ac.uk/id/eprint/16261
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