Agriculture and the WTO: Creating a Trading System for Development

Contents......Page 7
List of Boxes......Page 9
List of Tables......Page 10
List of Figures......Page 13
Foreword......Page 15
Acronyms and Abbreviations......Page 17
1. WHAT’S AT STAKE? DEVELOPING-COUNTRY INTERESTS IN THE DOHA DEVELOPMENT ROUND......Page 21
2. TRADE AGREEMENTS: ACHIEVEMENTS AND ISSUES AHEAD......Page 43
3. EXPORT COMPETITION POLICIES......Page 63
4. MARKET ACCESS: ECONOMICS AND THE EFFECTS OF POLICY INSTRUMENTS......Page 83
5. QUOTA ADMINISTRATION METHODS: ECONOMICS AND EFFECTS WITH TRADE LIBERALIZATION......Page 115
6. DOMESTIC SUPPORT: ECONOMICS AND POLICY INSTRUMENTS......Page 139
7. THE DISTRIBUTIONAL EFFECTS OF AGRICULTURAL POLICY REFORMS......Page 169
8. THE “MULTIFUNCTIONALITY” OF AGRICULTURE AND ITS IMPLICATIONS FOR POLICY......Page 187
9. FOOD SECURITY AND AGRICULTURAL TRADE POLICY REFORM......Page 199
10. MANAGING POTENTIAL ADVERSE IMPACTS OF AGRICULTURAL TRADE LIBERALIZATION......Page 213
11. THE SANITARY AND PHYTOSANITARY AGREEMENT, FOOD SAFETY POLICIES, AND PRODUCT ATTRIBUTES......Page 235
12. AGRICULTURAL BIOTECHNOLOGY: A PRIMER FOR POLICYMAKERS......Page 255
13. GLOBAL INTELLECTUAL PROPERTY RIGHTS: A NEW FACTOR IN FARMING......Page 273
14. RULES AND OPTIONS FOR SPECIAL AND DIFFERENTIAL TREATMENT......Page 289
15. SPECIAL TRADE ARRANGEMENTS TO IMPROVE MARKET ACCESS......Page 311
APPENDIX A: OECD POLICY EVALUATION MATRIX AND TRENDS IN POLICY FOR VARIOUS COMMODITIES......Page 337
APPENDIX B: THE AGREEMENT ON AGRICULTURE......Page 369
INDEX......Page 387
Box 1.1 The Importance of Agriculture to Developing Countries......Page 23
Box 1.2 The Human Face of Policy Incoherence......Page 29
Box 1.3 Reforming Inefficient Support Systems: Recent Experience in Two Developing Countries......Page 39
Box 1.4 Cambodia Rice: Challenges to Integration......Page 40
Box 2.1 The Price of Multilateral Negotiations......Page 44
Box 2.2 Uruguay Round Agreement on Agriculture: Important Documents......Page 47
Box 3.1 Two Examples of Consumer-Only-Financed Export Subsidy Schemes......Page 76
Box 4.1 Transparency and Tariffication......Page 90
Box 4.2 More on Tariff Quotas......Page 100
Box 5.1 Tariff Quotas: Categories of Principal Administration Methods......Page 119
Box 5.2 Tariff Quotas: Categories of Additional Conditions......Page 120
Box 5.3 Tariff Quotas: Economics of First-Come, First-Served (FCFS)......Page 134
Box 5.4 Tariff Quotas: Factors Affecting the Impacts on Trade with an STE in Importing Country......Page 135
Box 6.1 The Peace Clause and Domestic Subsidies......Page 151
Box 8.1 Aspects of Valuation......Page 192
Box 9.1 Food Security Indicators......Page 202
Box 10.1 Farming without Subsidies: The Experience of New Zealand......Page 226
Box 11.1 The Joint FAO/WHO Codex Alimentarius Commission (CAC)......Page 238
Box 11.2 The Office International des Epizooties (OIE)......Page 239
Box 11.3 The International Plant Protection Convention (IPPC)......Page 240
Box 12.1 The Global Trade Effects of China Bt Cotton......Page 258
Box 13.1 The U.K. Commission on Intellectual Property Rights’ Recommendations on Agriculture and Genetic Resources......Page 287
Box 15.1 Trade Agreements: AFTA to SADC......Page 313
Box 15.2 A Brief History of the GSP Schemes......Page 314
Table 15.4 U.S. Imports from CBERA Countries, Total and Under-Selected Import Programs, MFN-Free, GSP, and CBERA......Page 318
Box 15.4 U.S. Generalized System of Preferences (GSP): Criteria and Conditions......Page 319
Box 15.5 U.S. Generalized System of Preferences (GSP): Annual Timetable......Page 320
Box 15.6 Parties to Regional Trade or Preferential EU Trade Agreements in Force as of April 2002......Page 323
Box 15.7 The Americas: Trade Diversion—Displacement from Markets......Page 331
Box 15.8 Chile: Strategy for Growth—Access or Diversion?......Page 332
Table 1.1 Rural-Urban Poverty Gap......Page 24
Table 1.2 Agricultural Protection in Developing Countries, 1984–87 and 1994–98......Page 31
Table 1.3 Applied Tariff Rates in Developing and Industrial Countries, 1994–98 (Percent)......Page 32
Table 1.4 World Trade Simulation Model Product Categories......Page 34
Table 1.5 Frequency of NTBs in Developing and Industrial Countries, 1994–98 (Percent)......Page 35
Table 1.7 Shares of Developing and Industrialized Countries in World Exports (Percent)......Page 36
Table 1.8 Gains from Removing All Trade Barriers in Agriculture and Food Globally, Post-Uruguay Round, 2005 (in 1997 US$ Billions)......Page 37
Table 3.2 Total Export Subsidy Commitments......Page 64
Figure 3.1 Baseline Allocation of the Value of Export Subsidies......Page 66
Table 3.4 Percentage Allocation of Total Value Commitments by Commodity......Page 67
Table 3.5 Percentage Use of the Total Value Commitments Allocated to Each Commodity Group......Page 68
Table 3.6 Percentage Use of the Total Volume Commitments Allocated to Each Commodity Group......Page 69
Table 3.7 Countries Using over 90 Percent of Value Commitments......Page 70
Table 3.8 Countries Using over 90 Percent of Volume Commitments......Page 71
Table 3.10 Volume Front-Loading......Page 72
Table 3.11 Export Subsidy Equivalents (ESEs) (Percent)......Page 74
Table 4.1 Empirical Estimates of Transfers Due to Policies in World Agriculture, US$ Millions (1999–2001 average)......Page 92
Table 4.2 Empirical Estimates of Transfers Due to Policies by Commodity in World Agriculture, US$ Millions (1999–2001 average)......Page 93
Table 4.3 Examples of Tariff Peaks and Dispersion in Agriculture......Page 95
Table 4.4 Tariff Escalation (Weighted Average MFN Applied Tariffs in Percentage) in the Quad Markets (U.S., EU, Japan, and Canada)......Page 97
Table 4.5 Special Safeguards Tabled in the URAA......Page 98
Table 4.6 Analyzing Tariff Equivalents Using the Swiss Formula (maximum tariff of 25%)......Page 104
Table 4.8 Import Quotas in PEM......Page 108
Table 4.9 Tariffs Applicable to Tariff Quota Commodities......Page 109
Table 4.10 Tariff Rates (US$/mt)......Page 110
Table 4.11 Impact of Tariff Quota Border Protection (US$/mt)......Page 111
Table 5.1 Tariff Quotas by Product Category......Page 117
Table 5.3 Tariff Quotas by Principal Administration Method, 1995–2001......Page 118
Table 5.4 Tariff Quotas: Simple Average Fill Rates, 1995–2001......Page 127
Table 5.5 Distribution of Fill Rates, 1995–2000......Page 128
Table 6.1 Agricultural Support in OECD Countries, US$ Millions (1999–2001 Average)......Page 143
Table 6.3 Empirical Measures of Domestic Support by Commodity in World Agriculture, US$ Millions (1999–2001 Average)......Page 144
Table 6.4 Composition of Domestic Support by Country, 1995–1998 (percent)......Page 145
Table 6.5 Use of Total Aggregate Measurement of Support (AMS) Commitments by Member, 1995–2001 (percent)......Page 146
Table 6.6 AMS Commitments Versus Actual......Page 147
Table 6.7 Evolution of Aggregate Measure of Support (AMS) and Producer Support Estimate (PSE), US$ Billions......Page 149
Table 6.8 Total Green Box Expenditures by Category, US$ Millions, 1995–98......Page 153
Table 6.9 de minimis Support......Page 154
Table 6.10 2001 Baseline Support by Commodity Region and Type (US$/tonne)......Page 156
Table 6.12 Effect on Effective Producer Price and Production of Removing All Direct Payments Support......Page 157
Table 6.13 Effect of Trade Liberalization (US$ Millions)......Page 158
Table 7.1 Liberalization Effects on Wheat Price, Production, and Exports by Region, Base Levels, and Percentage Change......Page 173
Table 7.2 Liberalization Effects on Coarse Grains Price, Production, and Exports by Region, Base Levels, and Percentage Change......Page 174
Table 7.4 Liberalization Effects on Rice Price, Production, and Exports by Region, Base Levels, and Percentage Change......Page 175
Table 7.5 Welfare Effects of Liberalization by Region (US$ Millions)......Page 176
Table 7.6 Distribution of the Effects of Global Liberalization on Mexico: Base Income Levels and Percentage Change......Page 177
Table 7.7 Welfare Effects of Liberalization by Region (US$ Millions)......Page 178
Table 7.8 Distribution of the Effects of Liberalization on Mexican Base Income Levels and Percentage Change......Page 179
Table 7.9 Impacts of Hypothetical Changes in Maize Policies in Mexico (US$ Millions)......Page 180
Figure 9.1 Cereal Import Costs per Ton......Page 205
Table 10.1 Coefficients of Variation of World Prices of Selected Commodities......Page 218
Figure 10.1 Real Price of Selected Commodities (1960–97, US$ as of July 1997)......Page 219
Table 10.3 Decomposition of Real Producer Price for Wheat in Transition Economies......Page 221
Table 10.4 Decomposition of Producer Price Changes: Argentina......Page 222
Table 10.5 Decomposition of Producer Price Changes: Chile......Page 223
Table 10.6 Decomposition of Producer Price Changes: Columbia......Page 224
Table 12.1 Labeling Requirements for Genetically Modified Foods......Page 262
Table 12.2 Online Resources......Page 265
Table 12.3 The Cartagena Protocol on Biosafety......Page 266
Table 13.1 Online Resources......Page 274
Table 15.1 U.S. GSP Beneficiaries, 1999 (Independent Countries a )......Page 316
Table 15.3 Leading Product Groups Imported by the U.S. Duty-Free under GSP, 2000......Page 317
Table 15.5 U.S.-Sub-Saharan Africa Trade: Major U.S. Import Suppliers under the Generalized System of Preferences, and the African Growth and Opportunity Act (YTD Jan.–Jun, AGOA-Eligible Countries Only in US$ Millions)......Page 322
Table 15.6 EU: Applied MFN Tariffs by HS Chapters 01–22, 2002 (percent and U.S.$ Billions)......Page 324
Table 15.7 Effective Benefits of Quad Countries: Generalized System of Preferences for Least-Developed Countries, Late 1990s......Page 328
Table 15.8 Preference Margins for Selected Groups of Agricultural Products Exported from the AACP to the EU, Lome Preferences and GSP Preferences Compared, 1999 EU Tariffs (1997 Trade Data)......Page 329
Table 15.9 Preference Margins for Protocol Beef and Sugar Exported from Individual AACP Countries to the European Union under Lome Provisions, 1999 EU Tariffs (1997 Trade Data)......Page 330
Table 15.10 Preference Margins for Selected Groups of Agricultural Products Exported from the AACP to the European Union under Lome Provisions, Hypothetical EU Tariffs after the Next WTO Round (1997 Trade Data)......Page 333
Table A.1 OECD Support for Grains and Oilseeds 2001 (in US$ Millions)......Page 338
Table A.2 Type of Support as a Percentage (%) of Total Support for a Commodity......Page 340
Table A.3 Support to a Specific Commodity as a Percentage (%) of Total Type of Support......Page 342
Table A.4 Support as a Percentage (%) for Grains and Oilseeds Distributed among Specific Commodities......Page 344
Table A.5 OECD-6 as a Percentage (%) of OECD Total for Selected Commodities and Support Types......Page 345
Table A.6 Policy Instruments for Grains and Oilseeds in Mexico (1980–present)......Page 354
Table A.7 Model Outline......Page 357
Table A.9 Allocation of Household Survey Expenditure Categories......Page 363
Table A.11 Expenditures Per Capita by Decile, 2001 (US$)......Page 364
Table A.13 Maize Production Coefficients......Page 365
Figure 1.1 Trade Has Propelled Growth, 1965–2000......Page 26
Figure 1.2 Tariffs and Trade Growth......Page 27
Figure 3.A.2 Excess Supply Curve Shifts Inward from ES0 to ES2......Page 81
Figure 4.1 Evolution of Border versus Total Support in OECD Agriculture (US$ Billions)......Page 85
Figure 4.3 OECD: Other Commodities......Page 86
Figure 4.5 Applied versus Bound Tariffs in Developing Countries (Tariff Binding Overhang)......Page 87
Figure 4.6 Applied versus Bound Tariffs in Developed Countries (Tariff Binding Overhang)......Page 88
Figure 4.7 Average Bound Tariffs by Commodity, 2001......Page 89
Figure 4.9 Nominal Protection Coefficient by Commodity (OECD)......Page 91
Figure 4.11 Water in the Tariff—Applied Tariffs versus Tariff Equivalent of Binding TRQs for Selected OECD Commodities (%)......Page 94
Figure 4.12 The Three TRQ Regimes......Page 99
Figure 4.14 Out-of-Quota Imports with Quota Underfill and Out-of-Quota Imports......Page 101
Figure 5.1 Share of Output under Tariff Quotas......Page 129
Figure 6.1 Trends in Domestic Support......Page 142
Figure 6.2 Trends in AMS versus PSE (1986–2001), US$ Billions......Page 150
Figure 9.2 World Grain Stocks and Price, 1990–2000......Page 206
Figure 10.3 Price Band of Edible Oil in Chile......Page 228
Figure 12.1 Global Area of Transgenic Crops......Page 257
Figure A.2 OECD—Other Commodities......Page 346
Figure A.4 Canada—Other Commodities......Page 347
Figure A.6 United States—Other Commodities......Page 348
Figure A.8 European Union—Oilseeds......Page 349
Figure A.10 European Union—Other Commodities......Page 350
Figure A.12 Japan—Other Commodities......Page 351
Figure A.14 Mexico—Grains and Oilseeds......Page 352
Figure A.16 Mexico—Other Commodities......Page 353
Figure A.17 Production and Input Supply Responses to Increased Commodity Price......Page 359