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A CASE AGAINST THE SIMULTANEOUS USE OF MARKET ACCESS RESTRICTIONS, DOMESTIC SUPPORT, AND EXPORT SUBSIDIES AgEcon
Garcia, Roberto J..
The Uruguay Round of GATT introduced market disciplines to international trade in agricultural commodities. However, in cases where countries negotiated the right to limit market access, support domestic production at high levels and subsidize exports, the spirit of the WTO rules have been violated. The Norwegian meat market (beef, pork, lamb and mutton, and chicken) situations are studied in terms of the policy implications and WTO commitments. If Norway's policy objective is to target some level of production that satisfies its non-trade concerns, then semi-decoupled income support could be an improvement over a policy mix that simultaneously restricts market access, provides domestic support and applies export subsidies.
Tipo: Conference Paper or Presentation Palavras-chave: Norway; Meat; Market access limitations; Domestic support; Export subsidies; International Relations/Trade.
Ano: 2003 URL: http://purl.umn.edu/25915
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A Framework for Estimating U.S. WTO Domestic Support to 2015 AgEcon
Quiroga, Jose.
The framework allows comprehensive and consistent measurement and classification of U.S. domestic support to 2015 under different assumptions. Projections of future U.S. domestic support patterns are made with estimates published in the USDA Agricultural Baseline Projections. We also use information from the OECD, FAPRI, NASS, and our own estimates. We present key elements and an overview of our analytical framework, assumptions of a baseline scenario, and some analytical results and observations arising from our analysis. The baseline scenario extends the classification of programs in WTO notifications to 2015. The framework consists of 65 spreadsheets, which are grouped into 4 analytical stages: calculation of program estimates by commodity; calculation...
Tipo: Conference Paper or Presentation Palavras-chave: Agriculture; AMS; De minimis; Domestic support; WTO; Framework; International Relations/Trade; F1; Q1; Q17; Q18; F13.
Ano: 2006 URL: http://purl.umn.edu/25412
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A Revenue-Based Alternative to the Counter-Cyclical Payment Program AgEcon
Cooper, Joseph C..
This paper develops a stochastic model for comparing payments to U.S. corn producers of a revenue-based counter-cyclical payment (R-CCP) that is offered as an alternative in the 2007 House "Farm Bill" (H.R. 2419) to the current price-based CCP (P-CCP). We minimize the potential for miss-specification bias in the model by using nonparametric and semi-nonparametric approaches as specification checks in the model. Using this model, the paper examines the sensitivity of the density function for payments to changes in expected price levels. A mean-variance utility function approach is used to assess producer preferences for choice of CCP program alternative. The results show that as risk reduction instruments at the farm level, there appears to be little...
Tipo: Conference Paper or Presentation Palavras-chave: Domestic support; Counter-cyclical payments; Revenue; Price; Corn; Yield; Pairs bootstrap; Kernel density; Semi-nonparametric; Combinatorial optimization; Agricultural and Food Policy; Crop Production/Industries.
Ano: 2008 URL: http://purl.umn.edu/6197
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ACRE: A Revenue-Based Alternative to Price-Based Commodity Payment Programs AgEcon
Cooper, Joseph C..
This paper develops a stochastic model for estimating the probability density function of the Average Crop Revenue Election (ACRE), a revenue-based commodity support payment that is offered under the 2008 Farm Act as an alternative to the traditional suite of price-based commodity payments, that is, marketing loan benefits and counter-cyclical payments. We minimize the potential for miss-specification bias in the model by using nonparametric and semi-nonparametric approaches as specification checks in the model. Our simulation results show that adding ACRE revenue payments to gross revenue reduced the downside risk in revenue for corn, wheat, and soybean farmers in 2009 in the four locations examined, with reductions ranging from 4% to 25%. Integrating...
Tipo: Conference Paper or Presentation Palavras-chave: Domestic support; Average crop revenue election; Loan deficiency payments; Counter-cyclical payments; Revenue; Price; Corn; Yield; Pairs bootstrap; Kernel density; Semi-nonparametric; Combinatorial optimization; Negative exponential utility function; Agricultural and Food Policy; Demand and Price Analysis.
Ano: 2009 URL: http://purl.umn.edu/49180
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Agricultural Policy Indicators AgEcon
Josling, Timothy E.; Valdes, Alberto.
This paper outlines a methodological approach for use by FAO to collect, analyze and monitor agricultural policy indicators (API) for developing countries. The aim is to establish a consistent and comparable set of policy indicators, allowing analysts to examine whether agriculture in particular countries is being stimulated or retarded by the set of policies employed. The API should also be useful in the context of quantitative models of policy impacts and market projections. Ideally, the indicators should function as building blocks for the more comprehensive policy measurement. This paper is presented in four parts. Part I gives an overview of the rationale for monitoring, the relationship between policy monitoring, quantitative modeling and evaluation,...
Tipo: Working or Discussion Paper Palavras-chave: Agricultural policy; Trade and development; Policy indicators; Domestic support; Agricultural and Food Policy; Q11; Q17; Q18; O10; O19.
Ano: 2004 URL: http://purl.umn.edu/23789
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Are Disciplines Required on Domestic Support? AgEcon
Blandford, David.
The impact of domestic support on trade is likely to become an increasingly important issue in the WTO negotiations on agriculture. Domestic support expenditures are increasing and existing disciplines on forms and levels of support are weak. While a shift from market price support to output subsidies should be less trade distorting, such support may not be minimally distorting as required under the so-called “green-box” criteria. Proposals submitted by WTO members could further expand permissible support measures and weaken disciplines on their use. In some cases, most notably support provided in pursuit of environmental objectives, there may be a contradiction between the aims of support measures and the requirement that these should be minimally trade...
Tipo: Journal Article Palavras-chave: Agriculture; Domestic support; Green box; WTO; International Relations/Trade.
Ano: 2001 URL: http://purl.umn.edu/23857
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Asian Rice Policies and WTO Commitments on Domestic Support Under Existing and Proposed Doha Round Provisions AgEcon
Yang, Min-Hsien; Blandford, David.
We examine current rice policies in four major Asian countries (China, Japan, Korea, and Taiwan), their relationship to current WTO disciplines, and to those proposed under the Doha negotiations. WTO disciplines have prompted some changes in rice policies, but disciplines of domestic support are unlikely to impose serious constraints in the future. Using the example of Taiwan, we examine how existing support policies could be changed to reduce domestic distortions and satisfy WTO commitments. Changing from existing amber box payments to those that would likely qualify for inclusion under the blue or green boxes could allow greater market orientation in Taiwan’s rice market, while satisfying food security and farm income support objectives.
Tipo: Conference Paper or Presentation Palavras-chave: Domestic support; Rice; WTO; Taiwan; Asia; Agricultural and Food Policy; Food Security and Poverty; International Relations/Trade.
Ano: 2011 URL: http://purl.umn.edu/103665
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Classifying, Measuring and Analyzing WTO Domestic Support in Agriculture: Some Conceptual Distinctions AgEcon
Brink, Lars.
Much confusion permeates discussions of the domestic support provisions of the WTO Agreement on Agriculture and in the ongoing Doha negotiations. The paper clarifies some conceptual distinctions with a view to dispelling some confusion, enhancing communication, and facilitating the representation of domestic support provisions in economic analysis. It distinguishes between classification of policy measures and measurement of support, between measures and support, among measures classified in various categories, between applied support and commitments, and between applied support that counts towards commitments and applied support that does not. It highlights certain issues, including the role of criteria in classifying policy measures (such as those...
Tipo: Working or Discussion Paper Palavras-chave: WTO; Agriculture; Domestic support; Doha; AMS; De minimis; Commitments; Rules; International Relations/Trade.
Ano: 2007 URL: http://purl.umn.edu/7337
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Classifying, Measuring and Analyzing WTO Domestic Support in Agriculture: Some Conceptual Distinctions AgEcon
Brink, Lars.
Much confusion permeates discussions of the domestic support provisions of the WTO Agreement on Agriculture and in the ongoing Doha negotiations. The paper clarifies some conceptual distinctions with a view to dispelling some confusion, enhancing communication, and facilitating the representation of domestic support provisions in economic analysis. It distinguishes between classification of policy measures and measurement of support, between measures and support, among measures classified in various categories, between applied support and commitments, and between applied support that counts towards commitments and applied support that does not. It highlights certain issues, including the role of criteria in classifying policy measures (such as those...
Tipo: Working or Discussion Paper Palavras-chave: WTO; Agriculture; Domestic support; Doha; AMS; De minimis; Commitments; Rules.; International Relations/Trade.
Ano: 2007 URL: http://purl.umn.edu/14581
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Constraining U.S. and EU Domestic Support in Agriculture: The October 2005 WTO Proposals AgEcon
Brink, Lars.
In October 2005 the USA, EU, and G-20 submitted proposals on domestic support in the WTO agriculture negotiations. We consider the de minimis rules and allowances, project future (2014) distorting support for the USA and the EU-15, calculate the constraints resulting from projected values of production combined with the U.S., EU and G-20 proposals, and compare their effectiveness in constraining components of distorting support and future applied support. The de minimis rules make a significant difference for future allowed support. Under the U.S. proposal the Overall commitment constrains neither the USA nor the EU. Under the EU and especially the G-20 proposals the Overall commitment constrains distorting support to be less than the sum of the cap on...
Tipo: Conference Paper or Presentation Palavras-chave: Agriculture; AMS; De minimis; Domestic support; Overall reduction; WTO; Agricultural and Food Policy; International Relations/Trade; Q17.
Ano: 2006 URL: http://purl.umn.edu/25399
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Domestic Support Reform? A Closer Look at EU Policies Applied to Processed Fruits and Vegetables AgEcon
Rickard, Bradley J.; Sumner, Daniel A..
Recent trade negotiations have attracted much attention to the consequences of domestic support applied to agricultural markets. In various markets, researchers have examined the economic effects of regimes and scenarios with less, or different forms of, domestic support including decoupled payments. Here we examine the domestic support regimes for processed fruits and vegetables in the European Union (EU) where major policy changes were applied in 2001 and again in 2008. The changes were billed as policy “reform” but no analysis has yet evaluated quantitatively the nature of what was reformed and what was not. A simulation model is used here to assess the price, production, and welfare effects of policies that have been applied to the EU processing tomato...
Tipo: Working or Discussion Paper Palavras-chave: Agricultural policy reform; Domestic support; Horticultural markets; European Union; Common Agricultural Policy; Processing tomatoes; Simulation analysis; Agricultural and Food Policy; Q18.
Ano: 2008 URL: http://purl.umn.edu/51174
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Estimating the Costs of Revenue Deficiency Programs AgEcon
Cooper, Joseph C..
This paper develops an approach to empirically demonstrate how the within-season distribution of U.S. domestic commodity support for corn differs between current-style approaches of support and revenue-based support. From a purely economic standpoint, the results show the revenue-based payment scenarios to be preferable at the national level to the uncoordinated forms of support currently in use, even in a situation where the annual mean payments are set equal across the support scenarios. For revenue-based support, the variability around the total expected annual payment is lower, and perhaps more importantly, the probability of high payments is lower. These results suggest advantages to this type of support, both in terms of lower budgetary uncertainty –...
Tipo: Conference Paper or Presentation Palavras-chave: Domestic support; Marketing loan benefits; Counter-cyclical payments; Disaster assistance; Revenue support; Corn; Nonparametric; Semi-nonparametric; Bootstrap; Financial Economics.
Ano: 2007 URL: http://purl.umn.edu/9699
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Evaluating EU Agricultural Policy Reform Using the EU WTO Model AgEcon
Stout, Jim; Leetmaa, Susan E.; Normile, Mary Anne.
This paper provides an overview of the European Union component of the recently developed ERS/Penn State WTO Model. The model is a multi-region, multi-commodity partial equilibrium trade model which allows the user to simulate the effects of reducing or eliminating tariffs and TRQs, export subsidies, and domestic support policies. The paper describes how the model captures the important agricultural policies of the EU, and presents results from model simulations of domestic support liberalization, export subsidy elimination, and tariff removal.
Tipo: Conference Paper or Presentation Palavras-chave: WTO; Agricultural trade; Domestic support; Export subsidy; European Union; International Relations/Trade.
Ano: 2002 URL: http://purl.umn.edu/24941
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Evaluating the Saskatchewan Short-Term Hog Loan Program AgEcon
Lien, Donald; Hennessy, David A..
The Saskatchewan short-term hog loan program of 2002 provided a non-market credit line to participating hog producers. The repayment conditions for cash advances committed to by the provincial government depend on later hog prices, and so the program has derivative contract attributes. We model the contracts and use an estimated spot price stochastic process to establish summary statistics for producer benefits from the program.
Tipo: Working or Discussion Paper Palavras-chave: Agricultural policy; Derivative contract; Domestic support; International trade agreements; Livestock Production/Industries.
Ano: 2005 URL: http://purl.umn.edu/18571
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Imposing WTO disciplines on domestic support: an assessment of the Doha Round Approach AgEcon
Blandford, David.
The elements of the approach to disciplining domestic support for agriculture in the Doha round of WTO negotiations are evaluated using data for a selection of OECD countries. Despite a substantial increase in complexity in comparison to the Uruguay Round Agreement, the new approach is unlikely to require real reductions in trade-distorting support. As a result it is unlikely to stimulate further reforms in domestic agricultural policies in OECD countries. RESUMEN: En este artículo se evalúan los instrumentos del enfoque utilizado en la Ronda de Doha de la Organización Mundial de Comercio para establecer disciplinas en relación con la ayuda interna a la agricultura. El análisis se lleva a cabo para un conjunto de países de la OCDE. A pesar de la mayor...
Tipo: Journal Article Palavras-chave: International trade; Agriculture; Domestic support; WTO; International Relations/Trade; F02; F13; F14.
Ano: 2005 URL: http://purl.umn.edu/28766
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Optimal agricultural policy and PSE measurement: an assessment and application to Norway AgEcon
Blandford, David; Brunstad, Rolf Jens; Gaasland, Ivar; Vardal, Erling.
The producer support estimate (the successor to the producer support equivalent) calculated by the OECD is widely used as an indicator of distortions created by agricultural policies. In this paper we demonstrate that changes in the relative (percentage) PSE are not an accurate indicator of the implications of policy reform for domestic welfare or for trade distortions. We demonstrate that it is important to consider the implications of changes in both the level and the form of support in evaluating the impact of policy reform. Using a model of Norwegian agriculture we show that reforms indicated towards the provision of public goods, while apparently leading to an increase in relative support, are actually superior to existing agricultural policies or to...
Tipo: Conference Paper or Presentation Palavras-chave: Agricultural policy; Trade distortion; Domestic support; Producer subsidy estimate (PSE); Agricultural and Food Policy; C61; F13; F18; Q17; Q18.
Ano: 2008 URL: http://purl.umn.edu/36769
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Payments under the Average Crop Revenue Program: Implications for Government Costs and Producer Preferences AgEcon
Cooper, Joseph C..
This paper develops a stochastic model for comparing payments to U.S. corn producers under the U.S. Senate’s Average Crop Revenue Program (ACR) versus payments under the price-based marketing loan benefit and countercyclical payment programs. Using this model, the paper examines the sensitivity of the density function for payments to changes in expected price levels. We also assess the impact of the choice of yield aggregation used in the ACR payment rate on the mean and variance of farm returns. We find that ACR payments lower the producer’s coefficient of variation of total revenue more than does the price-based support, although ACR may not raise mean revenue as much. While corn farmers in the heartland states might still prefer to receive the...
Tipo: Journal Article Palavras-chave: Domestic support; Counter-cyclical payments; Revenue; Price; Corn; Yield; Pairs bootstrap; Kernel density; Combinatorial optimization; Agricultural and Food Policy.
Ano: 2009 URL: http://purl.umn.edu/49864
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Prediction of Loan Deficiency Payments AgEcon
Cooper, Joseph C.; Plato, Gerald E..
This paper develops a stochastic model for estimating potential loan deficiency payments to U.S. corn producers in a discrete-dynamic context. We minimize the potential for misspecification bias by using nonparametric and semi-nonparametric approaches as specification checks in the model. The model permits the forecast at planting time of the resulting empirical distribution of LDP payments for that crop year. Using this model, the paper examines the sensitivity of this distribution to changes in expected price levels.
Tipo: Conference Paper or Presentation Palavras-chave: Domestic support; Loan deficiency payments; Marketing loan benefits; Corn; Yield; Agricultural Finance.
Ano: 2007 URL: http://purl.umn.edu/9717
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TARIFF RATE IMPORT QUOTAS, DOMESTIC MARKET STRUCTURE AND AGRICULTURAL SUPPORT PROGRAM: THE CASE OF TAIWANESE RICE IMPORT AgEcon
Chang, Hung-Hao; de Gorter, Harry.
After joining the WTO in 2002, Taiwan allowed rice imports for the first time by implementing an import quota subject to a special safeguard tariff. In 2003, the import quota was expanded to a two-tier tariff rate import quota system. Although Taiwan maintained land set-asides and domestic support prices for producer sales to the State Trading Enterprise, the latter was limited to importing only 65 percent of the import quota with the rest sold to private traders. This sudden transformation of the Taiwanese import regime and rice market along with the government proposal for a "strategic alliance" amongst traders highlights the importance of studying the effects of policy reforms in the framework of imperfect domestic market structure. The purpose of...
Tipo: Conference Paper or Presentation Palavras-chave: Tariff rate quota; Strategic alliance; Domestic support; Market structure; Agricultural and Food Policy; International Relations/Trade; Q17; Q18.
Ano: 2004 URL: http://purl.umn.edu/36274
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The Current Round of Agricultural Trade Negotiations: Should We Bother About Domestic Support? AgEcon
Rae, Allan N.; Strutt, Anna.
The current WTO agricultural trade negotiations began in March 2000 and became part of the Doha Development Agenda in late 2001. The previous Uruguay Round reached agricultural agreements in the areas of market access, export competition and domestic support. The current round is seeking agreements under similar headings. The effort to reach agreement over reductions in domestic support to farmers is complicated by a number of factors,for example, the extent to which such support affects production decisions, the wishes of governments to support farmers for pursuing multifunctional outcomes from agriculture, and the categorisation of a myriad of policy instruments into green, blue and amber boxes. These complications pose the risk of considerably extending...
Tipo: Journal Article Palavras-chave: Agricultural policy reform; CGE modelling; Decoupled policies; Domestic support; WTO; International Relations/Trade.
Ano: 2003 URL: http://purl.umn.edu/23881
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