International Food Policy Research Institute
sustainable solutions for ending hunger and poverty
The economic performance of the West Asia and North Africa (WANA) region is highly diverse, but many of the countries in the region exhibit relatively slow growth rates and high unemployment. Some attribute these problems to the relatively high trade barriers and unfavorable investment climate that characterize the region, but policymakers are often reluctant to liberalize trade, in part because of concerns about the potential impact on farmers. This report examines the impact of trade liberalization on the agricultural sector, with emphasis on the effect on small farmers and the rural poor. The first half of the report describes the agricultural sector, trade patterns, and changes in trade policy in 13 WANA countries, and it reviews the literature on the impact of trade liberalization on the agricultural sector. The second half of the report provides more detailed analysis of the impact of trade reforms in Egypt, Tunisia, Syria, and Morocco. The Egypt chapter uses household budget data to estimate the distributional impact of hypothetical changes in agricultural prices. The Tunisia and Sryia chapters use CGE models to simulate the impact of different reforms on small farmers and poor households. And the Morocco chapter draws on the results of an earlier study of the distributional impact of liberalizing wheat trade policy. The study was carried out with funding from the Near East and North Africa Division of the International Fund for Agricultural Development (IFAD).