Harmonizing and reducing trade distorting domestic support: An analysis of the impacts of new domestic support disciplines at the WTO

Harmonizing and reducing trade distorting domestic support: An analysis of the impacts of new domestic support disciplines at the WTO

Author: Glauber, Joseph W.

Publisher: Intl Food Policy Res Inst

Published: 2021-11-30

Total Pages: 44

ISBN-13:

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The upcoming WTO Ministerial in November 2021 will once again provide WTO Members with an opportunity to address and reform agricultural domestic support. As pointed out in the Draft Chair Text on Agriculture of 29 July 2021, the Domestic Support pillar has been at the heart of the agricultural negotiations since their commencement in 2000, and, to date, has proven to be a challenging area to achieve consensus on how best to further reforms in that area. This paper examines three broad questions: First, what would be the effect on agricultural trade if Members were to fully utilize domestic support entitlements under the current Agreement on Agriculture. To study the role of existing policy space inherited from the Uruguay Round, we examine the impact of full utilization of domestic support entitlements on agricultural markets. Under the scenario, trade-distorting support would increase to USD 1.3 trillion, 5.5 times the level under the baseline scenario (USD 246 billion). Assuming full use of policy space, global agricultural production is projected to increase by 6 percent and global prices will drop by 8 percent, with all agricultural product prices showing declines. While farm income rises, a greater share of farm income comes from taxpayer resources, and the efficiency of additional transfers (ratio between increase in farmer income and taxpayer cost) is about 60 percent. The second objective of the paper is to discuss and analyze new disciplines that would further the re-forms accomplished under the Agreement on Agriculture by harmonizing support levels across Members and providing additional constraints to prevent Members from undermining these disciplines by concentrating support in a few commodities. The paper examines how these disciplines would affect production, prices, trade and farm sector income compared to a business-as-usual baseline. We find that using an overall concept of Overall Trade Distorting Support including all forms of trade-distorting measures, associated with amber and blue boxes, will have very negligible impacts on applied policies by 2030 and small effects on the agricultural markets overall. Extending this discipline to measures currently notified under Art. 6.2., the development box, will not put significant constraints on developing countries. Moving to this simplified and more transparent framework will require to define properly an anti-concentration clause, limiting the amount of payments that can benefit the producers of a specific commodity. Such feature will be quite important for sensitive commodities like cotton. Lastly, the paper examines how the proposed disciplines would affect agricultural markets under the alternative baseline that assumes that Members will utilize full entitlements under the current AoA. De-pending on the discipline scenarios, the potential subsidies increase will be reduced by USD 240 billion to USD 800 billion.


Book Synopsis Harmonizing and reducing trade distorting domestic support: An analysis of the impacts of new domestic support disciplines at the WTO by : Glauber, Joseph W.

Download or read book Harmonizing and reducing trade distorting domestic support: An analysis of the impacts of new domestic support disciplines at the WTO written by Glauber, Joseph W. and published by Intl Food Policy Res Inst. This book was released on 2021-11-30 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: The upcoming WTO Ministerial in November 2021 will once again provide WTO Members with an opportunity to address and reform agricultural domestic support. As pointed out in the Draft Chair Text on Agriculture of 29 July 2021, the Domestic Support pillar has been at the heart of the agricultural negotiations since their commencement in 2000, and, to date, has proven to be a challenging area to achieve consensus on how best to further reforms in that area. This paper examines three broad questions: First, what would be the effect on agricultural trade if Members were to fully utilize domestic support entitlements under the current Agreement on Agriculture. To study the role of existing policy space inherited from the Uruguay Round, we examine the impact of full utilization of domestic support entitlements on agricultural markets. Under the scenario, trade-distorting support would increase to USD 1.3 trillion, 5.5 times the level under the baseline scenario (USD 246 billion). Assuming full use of policy space, global agricultural production is projected to increase by 6 percent and global prices will drop by 8 percent, with all agricultural product prices showing declines. While farm income rises, a greater share of farm income comes from taxpayer resources, and the efficiency of additional transfers (ratio between increase in farmer income and taxpayer cost) is about 60 percent. The second objective of the paper is to discuss and analyze new disciplines that would further the re-forms accomplished under the Agreement on Agriculture by harmonizing support levels across Members and providing additional constraints to prevent Members from undermining these disciplines by concentrating support in a few commodities. The paper examines how these disciplines would affect production, prices, trade and farm sector income compared to a business-as-usual baseline. We find that using an overall concept of Overall Trade Distorting Support including all forms of trade-distorting measures, associated with amber and blue boxes, will have very negligible impacts on applied policies by 2030 and small effects on the agricultural markets overall. Extending this discipline to measures currently notified under Art. 6.2., the development box, will not put significant constraints on developing countries. Moving to this simplified and more transparent framework will require to define properly an anti-concentration clause, limiting the amount of payments that can benefit the producers of a specific commodity. Such feature will be quite important for sensitive commodities like cotton. Lastly, the paper examines how the proposed disciplines would affect agricultural markets under the alternative baseline that assumes that Members will utilize full entitlements under the current AoA. De-pending on the discipline scenarios, the potential subsidies increase will be reduced by USD 240 billion to USD 800 billion.

WTO Disciplines on Agricultural Support

WTO Disciplines on Agricultural Support

Author: David Orden

Publisher: Cambridge University Press

Published: 2011-03-31

Total Pages: 519

ISBN-13: 113950133X

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Farm support is contentious in international negotiations. This in-depth assessment of the legal compliance and economic evaluation issues raised by the WTO Agreement on Agriculture presents consistent support data and forward-looking projections for eight developed and developing countries (EU, US, Japan, Norway, Brazil, China, India, Philippines), using original estimates where official notifications are not available. Variations over time in notified support in some cases reflect real policy changes; others merely reflect shifts in how countries represent their measures. The stalled Doha negotiations presage significantly tighter constraints for developed countries that provide the highest support, but loopholes will persist. Developing countries face fewer constraints and their trade-distorting farm support can rise. Pressure points and key remaining issues if a Doha agreement is reached are evaluated. Vigilant monitoring for compliance of farm support with WTO commitments will be required to lessen its negative consequences whether or not the Doha Round is concluded.


Book Synopsis WTO Disciplines on Agricultural Support by : David Orden

Download or read book WTO Disciplines on Agricultural Support written by David Orden and published by Cambridge University Press. This book was released on 2011-03-31 with total page 519 pages. Available in PDF, EPUB and Kindle. Book excerpt: Farm support is contentious in international negotiations. This in-depth assessment of the legal compliance and economic evaluation issues raised by the WTO Agreement on Agriculture presents consistent support data and forward-looking projections for eight developed and developing countries (EU, US, Japan, Norway, Brazil, China, India, Philippines), using original estimates where official notifications are not available. Variations over time in notified support in some cases reflect real policy changes; others merely reflect shifts in how countries represent their measures. The stalled Doha negotiations presage significantly tighter constraints for developed countries that provide the highest support, but loopholes will persist. Developing countries face fewer constraints and their trade-distorting farm support can rise. Pressure points and key remaining issues if a Doha agreement is reached are evaluated. Vigilant monitoring for compliance of farm support with WTO commitments will be required to lessen its negative consequences whether or not the Doha Round is concluded.

WTO Disciplines on Subsidies and Countervailing Measures

WTO Disciplines on Subsidies and Countervailing Measures

Author: Dominic Coppens

Publisher: Cambridge University Press

Published: 2014-05-22

Total Pages: 695

ISBN-13: 1107014778

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A legal and normative analysis of WTO disciplines on industrial and agricultural subsidies and countervailing duties.


Book Synopsis WTO Disciplines on Subsidies and Countervailing Measures by : Dominic Coppens

Download or read book WTO Disciplines on Subsidies and Countervailing Measures written by Dominic Coppens and published by Cambridge University Press. This book was released on 2014-05-22 with total page 695 pages. Available in PDF, EPUB and Kindle. Book excerpt: A legal and normative analysis of WTO disciplines on industrial and agricultural subsidies and countervailing duties.

Domestic Regulation and Service Trade Liberalization

Domestic Regulation and Service Trade Liberalization

Author: Pierre Sauve

Publisher: World Bank Publications

Published: 2003-08-29

Total Pages: 244

ISBN-13: 0821383434

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Trade in services, far more than trade in goods, is affected by a variety of domestic regulations, ranging from qualification and licensing requirements in professional services to pro-competitive regulation in telecommunications services. Experience shows that the quality of regulation strongly influences the consequences of trade liberalization. WTO members have agreed that a central task in the ongoing services negotiations will be to develop a set of rules to ensure that domestic regulations support rather than impede trade liberalization. Since these rules are bound to have a profound impact on the evolution of policy, particularly in developing countries, it is important that they be conducive to economically rational policy-making. This book addresses two central questions: What impact can international trade rules on services have on the exercise of domestic regulatory sovereignty? And how can services negotiations be harnessed to promote and consolidate domestic policy reform across highly diverse sectors? The book, with contributions from several of the world's leading experts in the field, explores a range of rule-making challenges arising at this policy interface, in areas such as transparency, standards and the adoption of a necessity test for services trade. Contributions also provide an in-depth look at these issues in the key areas of accountancy, energy, finance, health, telecommunications and transportation services.


Book Synopsis Domestic Regulation and Service Trade Liberalization by : Pierre Sauve

Download or read book Domestic Regulation and Service Trade Liberalization written by Pierre Sauve and published by World Bank Publications. This book was released on 2003-08-29 with total page 244 pages. Available in PDF, EPUB and Kindle. Book excerpt: Trade in services, far more than trade in goods, is affected by a variety of domestic regulations, ranging from qualification and licensing requirements in professional services to pro-competitive regulation in telecommunications services. Experience shows that the quality of regulation strongly influences the consequences of trade liberalization. WTO members have agreed that a central task in the ongoing services negotiations will be to develop a set of rules to ensure that domestic regulations support rather than impede trade liberalization. Since these rules are bound to have a profound impact on the evolution of policy, particularly in developing countries, it is important that they be conducive to economically rational policy-making. This book addresses two central questions: What impact can international trade rules on services have on the exercise of domestic regulatory sovereignty? And how can services negotiations be harnessed to promote and consolidate domestic policy reform across highly diverse sectors? The book, with contributions from several of the world's leading experts in the field, explores a range of rule-making challenges arising at this policy interface, in areas such as transparency, standards and the adoption of a necessity test for services trade. Contributions also provide an in-depth look at these issues in the key areas of accountancy, energy, finance, health, telecommunications and transportation services.

A Practical Guide to Trade Policy Analysis

A Practical Guide to Trade Policy Analysis

Author: United Nations

Publisher: United Nations Publications

Published: 2012

Total Pages: 0

ISBN-13: 9789211128550

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In recent years, globalization and trade openings have become increasingly contentious. This book aims to fill a gap in the market by guiding the users through the main sources of data and the most useful empirical tools for trade and trade policy analysis in an applied, real-world context. This approach builds on the comparative advantage of the authoring organizations - the WTO and UNCTAD - both of which have a strong policy focus. It quantifies trade flows and trade policies, presents the gravity models, and covers a number of simulation methodologies to predict the effects of trade and trade-related policies on trade flows, welfare and the distribution of income.


Book Synopsis A Practical Guide to Trade Policy Analysis by : United Nations

Download or read book A Practical Guide to Trade Policy Analysis written by United Nations and published by United Nations Publications. This book was released on 2012 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent years, globalization and trade openings have become increasingly contentious. This book aims to fill a gap in the market by guiding the users through the main sources of data and the most useful empirical tools for trade and trade policy analysis in an applied, real-world context. This approach builds on the comparative advantage of the authoring organizations - the WTO and UNCTAD - both of which have a strong policy focus. It quantifies trade flows and trade policies, presents the gravity models, and covers a number of simulation methodologies to predict the effects of trade and trade-related policies on trade flows, welfare and the distribution of income.

Reducing Agricultural Tariffs Versus Domestic Support

Reducing Agricultural Tariffs Versus Domestic Support

Author: Bernard Hoekman

Publisher:

Published: 2016

Total Pages: 40

ISBN-13:

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High levels of protection and domestic support for farmers in industrial countries significantly affect many developing countries, both directly and through the price-depressing effect of agricultural support policies. High tariffs - in both rich and poor countries - and domestic support may also lower the world price of agricultural products, benefiting net importers.Hoekman, Ng, and Olarreaga assess the impact of reducing tariffs and domestic support in a sample of 119 countries. Least developed countries (LDCs) are disproportionately affected by agricultural support policies. More than 18 percent of LDC exports are subject to domestic support in at least one World Trade Organization (WTO) member, as compared to only 9 percent of their imports. For other developing countries the figures are around 4 percent for both their exports and imports. So, the prevailing pattern of trade suggests the world price-reducing effect of agricultural domestic support policies may induce a welfare loss in LDCs.The authors develop a simple partial equilibrium model of global trade in commodities that benefit from domestic support in at least one WTO member. The simulation results suggest there will be large differences between LDCs and other developing economies in terms of the impact of a 50 percent cut in tariffs as compared to a 50 percent cut in domestic support. Developing countries as a group would suffer a welfare loss from a cut in support, while LDCs would experience a small gain. For both groups of countries, tariff reductions by WTO members - including own liberalization - will have a positive effect on welfare. The results show both the importance of focusing on tariffs as well as subsities, and the need for complementary actions to allow a domestic supply response to occur in developing countries if world prices rise.This paper - a product of Trade, Development Research Group - is part of a larger effort in the group to analyze the effects of trade-related policies on developing countries.


Book Synopsis Reducing Agricultural Tariffs Versus Domestic Support by : Bernard Hoekman

Download or read book Reducing Agricultural Tariffs Versus Domestic Support written by Bernard Hoekman and published by . This book was released on 2016 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: High levels of protection and domestic support for farmers in industrial countries significantly affect many developing countries, both directly and through the price-depressing effect of agricultural support policies. High tariffs - in both rich and poor countries - and domestic support may also lower the world price of agricultural products, benefiting net importers.Hoekman, Ng, and Olarreaga assess the impact of reducing tariffs and domestic support in a sample of 119 countries. Least developed countries (LDCs) are disproportionately affected by agricultural support policies. More than 18 percent of LDC exports are subject to domestic support in at least one World Trade Organization (WTO) member, as compared to only 9 percent of their imports. For other developing countries the figures are around 4 percent for both their exports and imports. So, the prevailing pattern of trade suggests the world price-reducing effect of agricultural domestic support policies may induce a welfare loss in LDCs.The authors develop a simple partial equilibrium model of global trade in commodities that benefit from domestic support in at least one WTO member. The simulation results suggest there will be large differences between LDCs and other developing economies in terms of the impact of a 50 percent cut in tariffs as compared to a 50 percent cut in domestic support. Developing countries as a group would suffer a welfare loss from a cut in support, while LDCs would experience a small gain. For both groups of countries, tariff reductions by WTO members - including own liberalization - will have a positive effect on welfare. The results show both the importance of focusing on tariffs as well as subsities, and the need for complementary actions to allow a domestic supply response to occur in developing countries if world prices rise.This paper - a product of Trade, Development Research Group - is part of a larger effort in the group to analyze the effects of trade-related policies on developing countries.

Women and Trade

Women and Trade

Author: World Bank;World Trade Organization

Publisher: World Bank Publications

Published: 2020-09-04

Total Pages: 270

ISBN-13: 1464815569

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Trade can dramatically improve women’s lives, creating new jobs, enhancing consumer choices, and increasing women’s bargaining power in society. It can also lead to job losses and a concentration of work in low-skilled employment. Given the complexity and specificity of the relationship between trade and gender, it is essential to assess the potential impact of trade policy on both women and men and to develop appropriate, evidence-based policies to ensure that trade helps to enhance opportunities for all. Research on gender equality and trade has been constrained by limited data and a lack of understanding of the connections among the economic roles that women play as workers, consumers, and decision makers. Building on new analyses and new sex-disaggregated data, Women and Trade: The Role of Trade in Promoting Gender Equality aims to advance the understanding of the relationship between trade and gender equality and to identify a series of opportunities through which trade can improve the lives of women.


Book Synopsis Women and Trade by : World Bank;World Trade Organization

Download or read book Women and Trade written by World Bank;World Trade Organization and published by World Bank Publications. This book was released on 2020-09-04 with total page 270 pages. Available in PDF, EPUB and Kindle. Book excerpt: Trade can dramatically improve women’s lives, creating new jobs, enhancing consumer choices, and increasing women’s bargaining power in society. It can also lead to job losses and a concentration of work in low-skilled employment. Given the complexity and specificity of the relationship between trade and gender, it is essential to assess the potential impact of trade policy on both women and men and to develop appropriate, evidence-based policies to ensure that trade helps to enhance opportunities for all. Research on gender equality and trade has been constrained by limited data and a lack of understanding of the connections among the economic roles that women play as workers, consumers, and decision makers. Building on new analyses and new sex-disaggregated data, Women and Trade: The Role of Trade in Promoting Gender Equality aims to advance the understanding of the relationship between trade and gender equality and to identify a series of opportunities through which trade can improve the lives of women.

Agricultural Subsidies in the WTO Green Box

Agricultural Subsidies in the WTO Green Box

Author: Ricardo Meléndez-Ortiz

Publisher: Cambridge University Press

Published: 2009-12-03

Total Pages: 706

ISBN-13: 0521519691

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Growing evidence suggests that 'green box' farm subsidies may in fact affect production and trade, harm farmers in developing countries and cause environmental damage. This book brings together new research and analysis examining the relationship between green box subsidies and sustainable development goals, and explores options for future reform.


Book Synopsis Agricultural Subsidies in the WTO Green Box by : Ricardo Meléndez-Ortiz

Download or read book Agricultural Subsidies in the WTO Green Box written by Ricardo Meléndez-Ortiz and published by Cambridge University Press. This book was released on 2009-12-03 with total page 706 pages. Available in PDF, EPUB and Kindle. Book excerpt: Growing evidence suggests that 'green box' farm subsidies may in fact affect production and trade, harm farmers in developing countries and cause environmental damage. This book brings together new research and analysis examining the relationship between green box subsidies and sustainable development goals, and explores options for future reform.

The Role of Trade in Ending Poverty

The Role of Trade in Ending Poverty

Author: World Bank Group

Publisher:

Published: 2015

Total Pages: 0

ISBN-13: 9789287040138

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Trade will have an important role at the global level in generating the growth necessary for reducing extreme poverty to 3 percent and boosting prosperity for the poorest 40 percent by 2030. To identify the most important challenges that exist in maximizing the positive impact of trade on poverty, we need to understand who the poor are, where they are, and what economic activities they undertake. To this end, the study highlights particularly relevant dimensions of poverty: rural poverty in remote areas, informality, fragile and conflict situations, and women. For each of these issues, this study considers the main traderelated barriers and challenges, along with policy responses to address them. It shows the importance of the multilateral trading system and of the Doha Round, as well as the important role of the WBG and WTO in promoting coherence and implementing trade policies in a way that delivers the greatest possible benefits for the poor.


Book Synopsis The Role of Trade in Ending Poverty by : World Bank Group

Download or read book The Role of Trade in Ending Poverty written by World Bank Group and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Trade will have an important role at the global level in generating the growth necessary for reducing extreme poverty to 3 percent and boosting prosperity for the poorest 40 percent by 2030. To identify the most important challenges that exist in maximizing the positive impact of trade on poverty, we need to understand who the poor are, where they are, and what economic activities they undertake. To this end, the study highlights particularly relevant dimensions of poverty: rural poverty in remote areas, informality, fragile and conflict situations, and women. For each of these issues, this study considers the main traderelated barriers and challenges, along with policy responses to address them. It shows the importance of the multilateral trading system and of the Doha Round, as well as the important role of the WBG and WTO in promoting coherence and implementing trade policies in a way that delivers the greatest possible benefits for the poor.

Assessing the contribution of PIM to strengthening the capacity of developing country representatives to represent their interests in trade negotiations related to agriculture

Assessing the contribution of PIM to strengthening the capacity of developing country representatives to represent their interests in trade negotiations related to agriculture

Author: Bouët, Antoine

Publisher: Intl Food Policy Res Inst

Published: 2022-07-13

Total Pages: 96

ISBN-13:

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The purpose of this review is to assess the extent to which the research outputs of Flagship 3, cluster on The Policy Environment for Value Chains (cluster 3.1) of the CGIAR Research Program on Policies, Institutions, and Markets (PIM) have been used to inform decisions and behaviors of representatives of government organizations, development agencies, researchers, donors, private firms, nongovernment organizations, and other users. The assessment both reviews the achievement of past milestones as well as looks forward to how re-searchers should support the trade agenda in developing countries going forward through their research and communication of research and what should be the focus in the research agenda for developing countries. There are already ongoing and forming activities for which strategic guidance, decisions on allocation of resources across activities, or other research decisions could benefit from this assessment. Areas for prioritization include evaluation of policy changes proposed by policymakers or proactively investigated by the PIM trade team (e.g., reduction in domestic support, lowering tariffs), a trade and nutrition database, work on trade and greenhouse gas emissions, future AATM editions, improving data on trade flows, analysis of impactful events such as COVID-19 and large-scale droughts on world markets and value chains, work on the future of trade multilateralism, research on global value chains and non-tariff measures, and research on advancing value chains for competitiveness and economic development.


Book Synopsis Assessing the contribution of PIM to strengthening the capacity of developing country representatives to represent their interests in trade negotiations related to agriculture by : Bouët, Antoine

Download or read book Assessing the contribution of PIM to strengthening the capacity of developing country representatives to represent their interests in trade negotiations related to agriculture written by Bouët, Antoine and published by Intl Food Policy Res Inst. This book was released on 2022-07-13 with total page 96 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this review is to assess the extent to which the research outputs of Flagship 3, cluster on The Policy Environment for Value Chains (cluster 3.1) of the CGIAR Research Program on Policies, Institutions, and Markets (PIM) have been used to inform decisions and behaviors of representatives of government organizations, development agencies, researchers, donors, private firms, nongovernment organizations, and other users. The assessment both reviews the achievement of past milestones as well as looks forward to how re-searchers should support the trade agenda in developing countries going forward through their research and communication of research and what should be the focus in the research agenda for developing countries. There are already ongoing and forming activities for which strategic guidance, decisions on allocation of resources across activities, or other research decisions could benefit from this assessment. Areas for prioritization include evaluation of policy changes proposed by policymakers or proactively investigated by the PIM trade team (e.g., reduction in domestic support, lowering tariffs), a trade and nutrition database, work on trade and greenhouse gas emissions, future AATM editions, improving data on trade flows, analysis of impactful events such as COVID-19 and large-scale droughts on world markets and value chains, work on the future of trade multilateralism, research on global value chains and non-tariff measures, and research on advancing value chains for competitiveness and economic development.