Multilateral Negotiations on Farm‐support Levels

“…The TDE suggested by Canada would be based on PSE but modified to exclude nondistorting policies and to adjust the measured support downward for less distorting policies (selected payments and market price support associated with certain types of production quota) (GATT 1988a). Canada explained that TDE derived from the modified PSE of Tangermann et al (1987), circulated earlier in the International Agricultural Trade Research Consortium. The EC, the Canadian, and the earlier U.S. proposal-all accounted for a smaller policy set than did the OECD PSE.…”

Section: Domestic Support In Agriculturementioning

confidence: 99%

WTO Constraints on Domestic Support in Agriculture: Past and Future

Brink¹

2009

Canadian J Agri Economics

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"The domestic support provisions in the WTO Agreement on Agriculture originate in the 1958 Haberler Report. Economic analysis often overlooks the agreement's legally important distinctions. Few domestic support issues lead to dispute settlement proceedings. The Doha negotiations would result in more constraints on domestic support than the sole commitment on Total Aggregate Measurement of Support (AMS) in the present agreement: ceilings on overall trade-distorting support and blue box payments, and also product-specific caps. Some 18 members would reduce their Total AMS commitments, and 25 would reduce the de minimis percentages. Most members would not reduce their constraints at all or only little. If today's developing countries continue to grow as they did in recent decades, their capacity to support agriculture increases significantly. If they then choose to support agriculture as today's developed countries did at the same stage of economic development, the future WTO constraints on trade-distorting domestic support would allow them to provide considerably more such support than developed countries." Copyright (c) 2009 Canadian Agricultural Economics Society.

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“…Thus, converting a tariff to a producer subsidy equivalent or a payment to a producer tariff equivalent are two ways of expressing the same production and protection effect. More generally then, the producer 13 Inspired by Tangermann et al (1987). 14 A considerable amount of discussion and debate, and review of alternative methodologies took place in the OECD Secretariat before deciding on the measure of support (PSE) and modelling approach to use.…”

Section: The Producer Subsidy Equivalentmentioning

confidence: 99%