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Percent Change in Average Global Market Prices by Commodity in Two Agricultural Trade-Reform Scenarios
Commodity | Percent change in TFA scenario | Percent change in tariff-removal scenario
Fruits and vegetables | -1.50 | +0.04
Processed foods | -1.76 | -1.00
Rice | -0.37 | +1.36
Wheat | -1.35 | +0.45
Ratified in 2017 by two-thirds of World Trade Organization member nations, the Trade Facilitation Agreement (TFA) is a trade-reform measure that aims to reduce redundant customs procedures and other costly aspects of international trade. In a 2021 report, economist Jayson Beckman modeled global market prices of several agricultural commodities under both the TFA and an alternative trade-reform scenario: removal of agricultural tariffs (taxes on imports that generally increase prices on imported goods). After reviewing data from the report, a student concludes that overall, consumers of the commodities listed in the table would likely benefit more from the TFA than they would from tariff removal.
Ratified in 2017 by two-thirds of World Trade Organization member nations, the Trade Facilitation Agreement (TFA) is a trade-reform measure that aims to reduce redundant customs procedures and other costly aspects of international trade. In a 2021 report, economist Jayson Beckman modeled global market prices of several agricultural commodities under both the TFA and an alternative trade-reform scenario: removal of agricultural tariffs (taxes on imports that generally increase prices on imported goods). After reviewing data from the report, a student concludes that overall, consumers of the commodities listed in the table would likely benefit more from the TFA than they would from tariff removal.