Agriculture

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

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

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Illustration 1 unit value heterogeneity the case
of Sugar (HS170111)
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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
• Whats 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

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Illustration 3 The role of TRQ in measuring
protection
Countries Inside rate applied MacMapHS6 solution Outside rate applied
South Africa 12.6 15.1 18.0
Canada 5.7 15.9 17.3
China 10.6 11.1 25.9
South Korea 23.8 36.8 55
United States 3.8 8.9 9.9
Japan 20.0 28.2 31.6
Panama 13.1 15.8 17,7
Switzerland 30.1 53.2 83.6
European Union 16.1 21.3 24.2
All countries with TRQ 14.7 18.8 22.0
Laborde (2008)
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Domestic support
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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

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Illustration 4 AMS product specific cap
Two different provisions
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Illustration 4 AMS product specific cap
Supporting Table DS4 Current total AMS for
product x 1,049
http//docsonline.wto.org/
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Other indicators
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Illustration 5 Special products
1 Whether product is staple or part of the basic food basket 6 women producers
1 contribution to Caloric intake 6 of production in disadvantaged regions
2 Domestic production as of domestic consumption 7 of value of production from the product
3 Domestic consumption as of total world exports 7 of agriculture income of households from the product
3 exported by the largest exporting country 8 of product processed
4 domestic production on small land holdings 8 of value addition to the product
4 of small land holdings producing the product 9 of customs tariff revenue
5 of population/labour force employed in the production 10 of food expenditure on the product
6 low income farmers 10 of income spent on the product
6 of resource poor farmers 11 AMS or blue box subsidies and exported
6 of subsistence farmers 12 Productivity per worker of the product
6 vulnerable communities 12 Productivity per hectare of the product
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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

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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
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Measuring impacts
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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

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Data sources
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Data for agricultural trade
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Data Sources