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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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Presentation Transcript
overview
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…
tariff variation
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
specific tariffs unit values and ave
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
more complex tools
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
subsidies
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
slide13

W

T

ORLD

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G/AG/N/

country

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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/

slide16

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
slide17

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

illustration 6 possible change in world prices from doha round
Illustration 6: Possible Change in World Prices from Doha Round

Source: ATPSM simulation, UNCTAD

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