Doha and the food crisis

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Agricultural liberalisation in the European Union and the US is good for several reasons, but it will not help moderate the food crisis. A key component of the proposed Doha agreement is a substantial reduction in agricultural subsidies. This would reduce the supply of grains from some countries that subsidise them and increase it from other countries, especially in the Cairns group. The net effect on supply would be negative.

— Jagdish Bhagwati and Arvind Panagariya in the FT.

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One Response to “Doha and the food crisis”

  1. Anonymous Says:

    Doha might not moderate the food crisis, but it could help to prevent further food crises in the future.
    Bhagwati is a great economist, but he often fails to see the long-run.

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