OECD 2006 Report: Evaluation of support policy developments in OECD countries. 1.Main trends over time 2.Cross country comparisons 3.Cross commodity comparisons.

Slides:



Advertisements
Similar presentations
Building and Expanding Opportunities for Agriculture WTO Public Forum – October 4, 2007.
Advertisements

Ongoing reforms in most developing countries, little change in industrial and some developing countries Ongoing reforms in most developing countries,
Medium-term prospects for agricultural markets Update for EU-25 1 European Commission - Agriculture Directorate-General.
Prospects for EU-27 agricultural markets and income
Prospects for EU-25 agricultural markets and income
Prospects for EU-27 agricultural markets and income
Chapter 3: Demand and Supply
Directorate for Food, Agriculture and Fisheries ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT ORGANISATION DE COOPÉRATION ET DE DEVELOPMENT ÉCONOMIQUES.
Global Sugar Policy Reform John Beghin and Amani El-Obeid Economics and CARD Iowa State University Silverado Symposium on Agricultural Policy Reform University.
Economic Implications of the AUS-FTA for U.S. Dairy Markets and Policy Presentation by Joseph Balagtas at the Silverado Symposium on Agricultural Policy.
Agriculture in Norway Norsk Landbrukssamvirke. Norway 4.8 million inhabitants Part of Europe, but not member of the EU Agreement with the EU (EEA) – full.
The Choice for Agriculture A vision on the future of Dutch agriculture Gerrit Meester Ministry of Agriculture, Nature and Food Quality Utrecht, 24 February.
OECD-FAO Agricultural Outlook Jonathan Brooks Mexico City, 6 th November 2014.
Chapter 18. Open Economy Macroeconomics Link to syllabus.
Agricultural Policies in OECD Countries report 2006 Report describes short time changes and long term trends in OECD countries’ agricultural support. Short.
Agriculture and International Trade
Agricultural policy objectives Measurement of support Economics of Food Markets Lecture 6 Alan Matthews.
Free Trade? Despite policy reforms enacted as a result of the Uruguay Round Agreement on Agriculture, global dairy markets remain among the most protected.
AGRICULTURAL POLICY REFORM IN THE WTO The Road Ahead.
Agricultural policy objectives Measurement of support Economics of Food Markets Lecture 6 Alan Matthews.
International Trade Mechanics of Foreign Exchange (FOREX)
Agriculture and International Trade Chapter 16. Discussion Topics Growth and instability in agricultural trade The importance of agricultural trade The.
Directorate for Food, Agriculture and Fisheries ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT ORGANISATION DE COOPÉRATION ET DE DEVELOPMENT ÉCONOMIQUES.
Exchange Rates and Agricultural Trade Chapter 17.
FY 2015 U.S. Agricultural Trade Forecasts Changes to FY 2015 Forecasts Exports $1.0 billion to $140.5 billion Imports $2.0 billion to $117.0 billion Surplus.
Medium-term prospects and impact assessment of the CAP reform EU - 15 & EU European Commission - Agriculture Directorate-General.
© 2009 Prentice Hall Business Publishing Economics Hubbard/O’Brien UPDATE EDITION. Fernando & Yvonn Quijano Prepared by: Chapter 29 Macroeconomics in an.
Agricultural Policy Indicators: Developing an approach to monitor policy changes and their impacts on the agricultural sector of developing countries Statistics,
Directorate for Food, Agriculture, and Fisheries 1 ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT ORGANISATION DE COOPÉRATION ET DE DEVELOPMENT.
Domestic Support and the WTO: Comparison of Support Among OECD Countries C. Edwin Young Mary Burfisher Frederick Nelson Lorraine Mitchell Economic Research.
Analyzing the Impacts of Biofuel Mandates on World-Wide Grain, Livestock, and Oilseed Sectors Richard Stillman, Jim Hansen, Ralph Seeley, Dave Kelch, Agapi.
Agricultural policies in OECD countries
FOOD AND AGRICULTURE IN TURKEY: Developments in the Framework of EU Accession Erol H. ÇAKMAK Department of Economics Middle East Technical University (METU),
The OECD Producer Support Estimate ABARE Outlook 2010, Canberra March 2-3 Hsin Huang Trade and Agriculture Directorate.
Slides prepared by Thomas Bishop Copyright © 2009 Pearson Addison-Wesley. All rights reserved. Chapter 2 World Trade: An Overview.
Chapter 2 World Trade: An Overview Yanan University Finance and Economics Dep. Aihong Qin.
dp 2007 Farm Financial Survey Highlights dp 2 Publication: E ISBN: Catalogue: A36-1/2-2007E-PDF Project: dp.
The Impact of EU Export Subsidy Elimination on World Markets Susan E. Leetmaa.
CETA TRADE ANSWERS. QUESTION ONE (a) An increase in the OCR (set by Reserve bank) interest rates will increase returns to overseas investors so.
Directorate for Food, Agriculture, and Fisheries 1 ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT ORGANISATION DE COOPÉRATION ET DE DEVELOPMENT.
International Policy Live in a global economy where: –Interdependence means that any policy decisions made by one country has a impact on the U.S. –Many.
The International Food Market
Food Safety in Japan - Consumers' Perceptions on livestock products and policy- Shinichi Kobayashi College of Bioresource Sciences Nihon University.
Chapter 19. Open Economy Macroeconomics Link to syllabus.
Workshop on Medium Term Outlook for India’s Food Sector Overview of the Issues by by Shashanka Bhide NCAER Project Supported by Food and Agriculture Organisation.
Progress of Trade Policy Division By Yasser Al- Isa Damascus,SyriaNAPC,TPD2005.
Productivity in agriculture Christine Holleran Department for Environment Food and Rural Affairs Agricultural Statistics and Analysis Team.
Supply Response in the EU as a Result of CAP Reform What have we learned? ERS Modeling Workshop New Challenges in Modeling EU Agriculture and Agricultural.
Gaelle Gouarin OECD Trade and Agriculture Food chain network meeting Mobilizing the food chain for health OECD, PARIS, October Impacts on the.
OECD World Forum “Statistics, Knowledge and Policy”, Palermo, November
International Trade 4.5 Balance of Payments ISS International School Mr. Andrew McCarthy.
Economic Overview December 2015.
The Doha Round of WTO Negotiations: The U.S. Perspective Robert L. Thompson Chairman International Food & Agricultural Trade Policy Council and Gardner.
Performance and Prospects for Belarus Agro-Food Sector Country Economic Memorandum.
AGRICULTURAL POLICIES IN OECD COUNTRIES Václav Vojtĕch OECD, Trade and Agriculture Directorate Department of Economic and Social Policies Prague University.
Eric Wailes and Alvaro Durand-Morat University of Arkansas, Division of Agriculture Impacts of WTO Policy on U.S. Rice Policy.
Joel D. Sherman, Ph.D. Secretariat of Public Education – Mexico UNESCO Regional Office for Latin America and the Caribbean Nassau, Bahamas 9-10 December.
Animal protection in Europe DE3-COM
Toward a More Integrated North American Agri-Food Market Presented by Brian Paddock Agriculture and Agri-Food Canada San Antonio, Texas May 23-24, 2002.
Xinshen Diao, Agapi Somwaru and Terry Roe The objective was to provide the “ big picture ” A Global Analysis Of Agricultural Reform In WTO Member Countries.
Agricultural policies in OECD countries
Domestic support and international agricultural markets
Trends in African Agricultural Trade
DG Agriculture and Rural Development European Commission
Asian Business Outlook Part of the Global Business Outlook
How Canada Compares Internationally
Is the Concept of the Producer Support Estimate in Need of Revision ?
The Producer Support Estimate
Mechanics of Foreign Exchange (FOREX)
Stakeholder consultation on the CAFÉ baseline agricultural scenario
Presentation transcript:

OECD 2006 Report: Evaluation of support policy developments in OECD countries. 1.Main trends over time 2.Cross country comparisons 3.Cross commodity comparisons Comparing the period with the period (base) The PSE, the total monetary figure for the estimated level of transfers to producers from consumers and taxpayers, is denominated in the local currency of each country, so must be converted into a single currency to allow comparison across countries…. But leads to problems  % PSE which measures the share of transfers in the value of gross producer receipts.

1.Overall support to producers over the long term. Gradual and unsteady reduction.

Table 1.2:  PSE fell from 37% in base to 30% in  NAC (Nominal Assistance Coefficient – an expression of the monetary value of transfers from consumers and taxpayers to producers relative to current production valued at the border price) indicates that while in farm receipts were on average 60% higher than they would be if entirely generated in world markets without any support, by they had fallen to 42% above their world market value.  Result: Improvement in market orientation – with a greater share of farm receipts generated in markets than created by government intervention which is one of the principles set out in 1987 when the OECD decided to reform agricultural policy.

2.Differences in support across countries Looking at %PSE: 2005:  Increase – Iceland, Mexico, New Zealand (but Marginal  Decrease – E.U, Japan, Norway  Same – Australia, Canada, U.S, Korea, Turkey, Switzerland Why? Changes in the Market Price Support (MPS) & changes in budgetary support. Examples. Over time:  Average %PSE in was lower than average in all countries except Turkey.  Largest relative decreases were in New Zealand, Mexico, Canada, Australia and U.S.

Large differences in estimated support among countries:  Below 5% in Australia & New Zealand  Less than 20% in Mexico & U.S  E.U higher than OECD average of 34%  Iceland, Japan, Korea, Norway & Switzerland greater than 50%, approaching 70% in some cases. BUT WHY??  Variations in policy objectives  Different historical uses of policy instruments  Varying pace & degree of progress in agricultural policy reform.

Composition of support across countries 1.Output linked support measures 2.Payments tied to purchased inputs. Bad because they distort production & trade and limit the extent to which world markets influence domestic production decisions. But the OECD have changed the composition towards budgetary payments. 1 & 2 above & share of MPS has decreased from 91% of overall OECD support to producers in to 72% in (fig 1.4&1.5) However this figure is averaged among all OECD countries so it still accounts for more than the 91% in Japan & Korea.

Status of agricultural reform by country AustraliaSupport has fallen the %PSE is the second lowest, domestic & border prices are aligned. CanadaProgress being made in reducing support & the reliance in distorting forms of support E.USupport has fallen & progress made in reducing distorting forms of support. Will be further improvements after recent reforms. IcelandSupport only reduced slightly, efforts are being made to decrease the distorting forms of support but both indicators still remain high. JapanNo reduction in either measure but recent policy decisions may lead to improvements. KoreaSlight fall in both indicators, both remain high but the new rice policy may lead to a decrease in the distorting forms of support. MexicoProgress has been made in both indicators New Zealand Support has been reduced from an already low base to the lowest %PSE in the OECD domestic prices are closely aligned to border prices & payment based on inputs have decreased. NorwayLittle reduction in support, progress in lowering the most distorting forms of payments, although both remain high. SwitzerlandSupport has only fallen slightly %PSE is the highest in the OECD but significant improvements have been made to reduce the most distorting forms of payments. TurkeyIncrease in support. Share of most distorting payments have decreased. United States Modest reduction in support & reliance on the most distorting forms of support.

3.Cross commodity comparisons Influenced by : depreciation in USD, Euro & Yen relative to other OECD currencies Dollar – dominated commodity prices in 2005 changed little from 2004 but nominal prices are higher in than in  Cereal: rice increased, maize decreased, wheat stayed same but still higher than in base.  Oilseed: Decreased but still higher than in base  Raw Sugar: increased – 25% higher than in base.  Traded Dairy: increased – Milk 75% higher than in base.  Beef & Pork: increased in 2005 relative to but many other meat prices changed or fell. Why?  Animal diseases & health issues – BSE: Japan, Canada & U.S Avian influenza: Turkey& E.U FMD: Latin America