By Organisation for Economic Co-Operation and Development
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Extra resources for Agricultural Trade and Poverty: Making Policy Analysis Count
Where such policies capture a larger share of transactions than an exporter’s price would support, competitors must lower their price to compete with the supported trade or else must seek markets elsewhere or defer sales and thereby incur some additional costs. Food security Among the concerns that have been expressed regarding the effects of trade liberalisation is the impact on food security. In response to this concern, the recent OECD report extends some of the analysis described above in order to identify how further trade liberalisation, such as an increase in market access or a reduction in export subsidies on the part of OECD Members, might affect food security.
The GTAP data do not distinguish raw and refined sugar uniformly across countries, leading to much raw sugar being accounted for as refined sugar, especially in trade data. Hence, the refined sugar sector provides information for the aggregate sugar industry (raw and refined) whereas the results for the raw sugar sector should be discounted. These shortcomings are significant but not radical enough to invalidate our policy analysis exercise. Production and trade flows would be different under a more accurate policy description but the key messages emerging from our analysis remain unaltered.
These results highlight the sometimes overlooked fact that only one aspect of a TRQ regime (in-quota tariff, quota quantity or out-of-quota tariff) can be binding at one time. This implies that changes in a single aspect of a TRQ regime may have no effect at all. But as changes in one instrument may lead to a regime switch so that another instrument becomes the binding one, simultaneous liberalisation of all TRQ instruments would yield the largest effects. Export subsidies and export credits Export subsidies (as defined under Article 9 of the URAA and as notified to the WTO) and officially supported export credits are two export competition policies that may be used to expand exports of those countries that rely on such schemes relative to what would otherwise be the case.