Agriculture and trade liberalisation : extending the Uruguay Round Agreement / Organisation for Economic Co-operation and Development.

Format:

Book

Government document

Contributor:

Organisation for Economic Co-operation and Development

Language:

English

Subjects (All):

Agreement on Trade-Related Aspects of Intellectual Property Rights (1994 April 15).

Agreement on Trade-Related Aspects of Intellectual Property Rights.

Agriculture and state.

Commercial treaties.

Produce trade.

International trade.

Physical Description:

156 pages : illustrations ; 27 cm

Place of Publication:

[Paris] : OECD, [2002]

Summary:

This report provides information on the average tariff levels and on the use of tariff-rate quotas, export subsidies and export credits by selected OECD countries for temperate-zone agricultural products. The implications of further liberalisation of the various instruments over the medium term are examined.

Contents:

Part I Tariff-Rate Quotas and Tariffs in Oecd Agricultural Markets: A Forward-Looking Analysis

The economics of TRQs 14

TRQs and fill rates 20

TRQs and fill rates for OECD Countries 20

Tariffs 28

How are average tariffs calculated? 28

Calculating ad valorem equivalent 28

Average tariffs for Aglink countries are high 29

Tariffs are very disperse 30

Fewer but still significant number of mega-tariffs 32

Trade-weighted average tariffs much lower for most countries 32

Average tariff by in- out-of- and no-quota 33

Dairy products among most protected 35

Applied rates are also substantial 38

Generalised system of preferences 39

Empirical implementation 40

Aglink model 40

Data issues 43

Scenarios 46

Differences between TRQBASE and BASELINE 49

Changes in world prices 50

Scenario results 54

Gradual quota expansion 55

TRQ expansion and in-quota tariff reduction 57

Out-of-quota and non-quota tariff reduction 62

Quota expansion and reduction of all tariffs 66

Part II A Forward-Looking Analysis of Export Subsidies in Agriculture

Data from country notifications to the WTO 86

Summary of Aglink and the Outlook 87

Subsidised exports in the Outlook are low for crops, but higher for livestock products 87

Quantity controls or support prices 88

Results of the scenario 90

Eliminating subsidised exports lowers internal market prices 91

Eliminating subsidised exports increases world dairy prices, but has less effect on world crop prices 93

Key assumptions 94

Sensitivity of results: the consequences of alternate assumptions regarding the Euro 95

Annex. Implementation of the export subsidy scenario in Aglink 99

Part III An Analysis of Officially Supported Export Credits in Agriculture

Use of export credits 111

Total export credit use rose over the survey period (1995 to 1998), in absolute terms 111

... and also rose relative to trade 113

Subsidy rate of export credits 114

Subsidy rate estimates for 1998 show that some export credits distort trade 116

Over a third of the export credits of the survey target bulk cereals, yet these account for almost half of the subsidy element of export credits 119

How defaults can affect the subsidy rate 121

Importers and liquidity constraints 122

Can export credits create demand? 122

Recipients of export credits are mostly OECD Members, not developing countries 123

Other uses of export credits excluded from this study 125

Organisations with legislative authority 126

The overlap between export credits and food aid 126

Exchange rate guarantees and other possible programme benefits or effects 127

Export credits in world agricultural product markets 127

Preliminary analysis of the world market effects of distorting export credits 128

Export credits and export subsidies on world markets 129

Annex. Method and Data used to Evaluate Export Credits 135

I.1. Number of TRQs and average fill rates for OECD and other selected countries 22

I.2. Aggregating quotas and tariffs into Aglink commodities 25

I.1. Tariff quotas, fill rates and imports of selected commodities 26

I.2. Allocated quotas in 2000 for Aglink products 27

I.3. Average and standard deviation of tariffs for commodities in Aglink in selected countries 30

I.4. Average and standard deviation of trade weighted tariffs for countries and commodities in Aglink 33

I.5. Average tariff rates for countries and commodities in Aglink 34

I.6. Average tariff in 2000 by in-out and non-quota products 37

I.7. Effects on selected commodities of various preferential agreements (2000) 40

I.8. Endogenous countries in Aglink, number of TRQs and tariff-only regimes implemented 45

I.9. Average tariff rates for selected OECD countries and commodities 47

I.10. Per cent change in world prices: TRQBASE relative to BASELINE 50

I.11. Effects in selected domestic markets 51

I.12. Relative change in world price of selected commodities: TRQBASE relative to alternative scenarios 56

I.13. Effects in selected domestic markets TRQBASE relative to TRQEXP50 58

I.14. Changes in selected domestic markets: TRQEXPT1 relative to TRQBASE 60

I.15. Changes in selected domestic markets: TRQT2 relative to TRQBASE 64

I.16. Changes in selected domestic markets: ALL relative to TRQBASE 67

I.A.1. Quad countries preferential trade agreement 73

I.A.2. Distribution of reduced tariffs among agricultural and industrial products 74

I.A.3. Share of tariff lines under GSP schemes, number of beneficiary countries, and their share of imports 75

I.A.4. Products included in analysis 75

I.A.5. Percentage of relevant tariff lines affected by GSP and LDC 75

I.A.6. GSP and LDC share of imports for selected products (1999) 76

I.B.1. Example of calculations to derive TRQ volume for use in Aglink: US cheese 78

I.B.2. Example of calculations to derive TRQ volume for use in Aglink: EU beef 79

II.1. Export subsidies in the Outlook 88

II.2a. Export subsidy elimination scenario - European Union market consequences 90

II.2b. Export subsidy elimination scenario - Canada, United States and world market consequences 91

II.3. Export subsidy elimination results under different assumptions regarding the value of the Euro 96

II.A.1. WTO notification quantity data for Aglink commodities 100

II.A.2. Lesser importance of value limits in the Outlook 101

II.A.3. Quantities of export subsidies in the Outlook 102

II.A.4. Export subsidies included in the present study 103

III.1. Export credits and the value of exports 112

III.2. Subsidy element estimates in 1998 116

III.3. Export credits by length 117

III.4. Export credits and subsidy element by commodity group 120

III.5. Recipients of officially supported export credits 124

III.6. Export credits and export subsidies 130

III.A.1. How parameters of the Ohlin formula affect estimates 137

III.A.2. Examples of the guaranteed rate calculation 140

III.A.3. Estimate link between credit rating services to increase coverage 142

III.A.4. Estimated mapping from credit ratings to interest rates 145

III.A.5. Sensitivity of subsidy amount and rate estimates to interest rates 147

III.A.6. Parameters from survey data: fees and net defaults in 1998 150

III.A.7. Other parameters from survey data in 1998 150

III.A.8. Composite credit ratings 152

I.1. Three zones of effectiveness 14

I.2. Quota under-fill with administrative costs 18

I.3. Per cent of fill rates by fill-rate categories (1995-1999) 24

I.4. Average fill rates (1995-1999) 26

I.5. Percentage of mega-tariffs by country 31

I.6. Average tariff for Aglink commodities and selected countries 34

I.7. Average tariffs in 2000 35

I.8. Percentage of mega-tariffs by agricultural commodity 36

I.9. Applied and scheduled tariffs for selected commodities: 1997 38

II.1. Public stocks relative to production in 2005 89

II.2. World crop markets - Indirect effects of export subsidy elimination 93

II.A.1. Canadian dairy component 105

II.A.2. Poultry trade effects 107

III.1. Spreads on emerging market bonds by credit rating 115

III.2. Terms of export credits 118

III.3. Subsidy amount estimates for beginning 1998 119

III.4. Countries' export credits to OECD importers, 1995-98 125.

Notes:

Published in French under the title: L'agriculture et la libéralisation des échanges : élargir la portée des accords d'Uruguay.

Includes bibliographical references.

ISBN:

9264197095

OCLC:

49765485