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A Stocktaking of OECD Work on Subsidies

A Stocktaking of OECD Work on Subsidies. Outi Honkatukia OECD Secretariat. Background. OECD countries committed to reducing subsidies... …yet only modest progress over the years  OECD Ministerial mandate 2001. OECD work on obstacles to policy reform.

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A Stocktaking of OECD Work on Subsidies

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  1. A Stocktaking of OECD Work on Subsidies Outi Honkatukia OECD Secretariat

  2. Background • OECD countries committed to reducing subsidies... • …yet only modest progress over the years •  OECD Ministerial mandate 2001

  3. OECD work on obstacles to policy reform • Take stock of the ongoing work on subsidies • Identify environmentally harmful subsidies • Analyse experiences in subsidy reform • Develop policy recommendations

  4. Caveats • Different methodologies • Data gaps • Different countries • Different years

  5. Keep the caveats in mind when looking at the big picture Billion USD

  6. Support to agriculture is high... • … but it is also the sector with the most complete data • 311 billion USD in 2001 • 1.3% of GDP; 31% of the value of farm receipts

  7. Modest change in the level of support…%PSE

  8. …and in the composition of support.

  9. Other sectors pale in comparison 1) Transport: USD 40 billion in road and rail subsidies in Europe 2) Energy producers: USD 20-30 billion, of which USD 5 billion for coal 3) Manufacturing: USD 22 billion in the EU 4) Fisheries: USD 6 billion

  10. Support to coal production has decreased over time...

  11. …but not if we look at support per tonne of coal produced

  12. What other data sources are there? 1) System of National Accounts 2) WTO Agreement on Subsidies and Countervailing Measures 3) EU State Aid Survey 4) National sources (e.g. Productivity Commission)

  13. To conclude 1) Progress made in the measurement and analysis of subsidies 2) Significant gaps remain 3) Stocktaking exercise important for setting priorities and advancing the debate

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