Differences regarding the liberalization of agricultural markets are a central issue in the current Doha-round of WTO negotiations. The positions of the individual countries and country groups differ significantly as far as market access is concerned. The positions can be explained by the existing levels of market support and thus by potential agricultural income losses as a consequence of market liberalization.
The purpose of this paper is to analyze the dynamic impacts of different adjustment steps in market access and the resulting interactions between the agricultural markets. Adjustment steps can consist in an expansion of tariff quotas and in a reduction of import tariffs. Our simulations show that price development and thus the development of the revenue from agricultural products depend on several factors. In addition to domestic supply and demand the temporal design of market liberalisation is a key influencing factor.