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Agriculture – Specific issues

Agriculture – Specific issues. Data Day at the WTO. Tariffs. Overview. Agricultural trade is still dampen by tariff and non tariff barriers Agricultural tariffs 7 times higher than Non Ag. Combinations of border and non border measures Lack of transparency of many measures

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Agriculture – Specific issues

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  1. Agriculture – Specific issues Data Day at the WTO

  2. Tariffs

  3. Overview • Agricultural trade is still dampen by tariff and non tariff barriers • Agricultural tariffs 7 times higher than Non Ag. • Combinations of border and non border measures • Lack of transparency of many measures • Complex instruments • Weak notifications • Data sources: AMAD, IDB, MAcMap, MAcMapHS6, WTO notifications, National sources…

  4. Tariff variation • Numerous changes across time • Between years • Inside a given year • Seasonal protection • Challenge for the analysis: Calendar year versus Crop year • Endogeneity of tariff to price level • Target domestic price

  5. Illustration 2: Tariff volatility, the case of Wheat (EU)

  6. Specific tariffs, Unit values and AVE • Specific tariffs: 45% of agricultural protection • OECD countries • But… Reference price and ad valorem in developing countries • From price to unit value • Product heterogeneity • Different concepts of unit value • Official = Negotiation  Accessibility to information • Effective distortions = Economic impacts • Tariffs and Unit values: endogeneity problems • Lack of robustness of bilateral unit values • Unit value and preferences: who gets the rents? • Exchange rate, unit values and mechanical on AVE

  7. Illustration 1: unit value heterogeneity the case of Sugar (HS170111)

  8. More complex tools • Entry prices, additional duties… • Tariff rate quotas: tariffs, quantity, fill rates… • WTO and preferential • Bound and applied level • Multilateral and allocated • Allocation method • What’s happen really on the field? Need of a transparent database on licenses • Discretionary behavior • New quota • Assessing the real level of protection, rents etc. • New research initiatives

  9. Illustration 3: The role of TRQ in measuring protection Laborde (2008)

  10. Domestic support

  11. Subsidies • Domestic support • Notifications, box and coupling instruments • When notifications are not available: researchers come with their own: Improving WTO Transparency, Shadow Domestic Support Notifications Measurement Issues, IFPRI • Measurement of support: PSE of OECD • Export subsidies • Ad valorem / specific: level of subsidies and level of world prices • Export Credit, Food Aid • Public monopoly

  12. Illustration 4: AMS – product specific cap Two different provisions

  13. W T ORLD RADE G/AG/N/ country / number 1 7 March .... O RGANIZATION ( … ) Committee on Agriculture Original: English NOTIFICATION Illustration 4: AMS – product specific cap Supporting Table DS:4 Current total AMS for product x: 1,049 http://docsonline.wto.org/

  14. Other indicators

  15. Illustration 5: Special products

  16. Illustration 5: Special products – Contributions to calories intake • FAO provides data on the caloric intake in kcal by product • Data is available for 124 products at the level of the FAO classification • Example: Apples, Maize, Potatoes, Wheat, Sugar cane • There is no easy one-to-one match with the HS classification used in WTO: but a (complex) concordance table exists • Calculate share of contribution to total caloric intake for each product • If this share is higher than [10 %] the product contributes significantly to caloric intake AND is thus a candidate for SP

  17. Illustration 5: Special products – Contributions to calories intake Share of products that each contributes at least 10 per cent (5 per cent) to the total caloric intake; Based on products for which data are available; Data source: FAOstat

  18. Measuring impacts

  19. Illustration 6: Possible Change in World Prices from Doha Round Source: ATPSM simulation, UNCTAD

  20. Beyond agriculture • Agriculture, Poverty and Hunger • Agriculture, Redistribution and Stabilization • Agriculture and Climate Change • Agriculture and Energy: • Biofuels

  21. Data sources

  22. Data for agricultural trade

  23. Data Sources

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