Progress of Trade Policy Division By Yasser Al- Isa Damascus,SyriaNAPC,TPD2005

May19,2005 NAPC,TPD By Yasser Al-Isa 10/2 Free Trade Agreements and Regional Arrangements with special attention for those including Syria Agricultural policies in the developed economies, including the impact of such policies on the world agricultural trade Agricultural policies in the developed economies, including the impact of such policies on the world agricultural trade

May19,2005 NAPC,TPD By Yasser Al-Isa 10/3 On Going Activities Special Isseu: “Syrian-EU Association Agreement” Special Isseu: “Syrian-EU Association Agreement” Trade Policy Breif: “Is AA. worth for Syria” Trade Policy Breif: “Is AA. worth for Syria” Commodity and Market (CM) briefs:”Cotton” Commodity and Market (CM) briefs:”Cotton” Review Paper: “The Concept of Agricultural Subsidies and its Significance in Developed Countries”CASSDC Review Paper: “The Concept of Agricultural Subsidies and its Significance in Developed Countries”CASSDC

May19,2005 NAPC,TPD By Yasser Al-Isa 10/4 Review Paper “CASSDC” To encourage fair trade in agriculture by removing trade distortions resulting from differential levels of input subsidies To encourage fair trade in agriculture by removing trade distortions resulting from differential levels of input subsidies Subsidies may become perverse incentives and adversely affect both the economy and the environment while they often end up benefiting rich groups primarily Subsidies may become perverse incentives and adversely affect both the economy and the environment while they often end up benefiting rich groups primarily

May19,2005 NAPC,TPD By Yasser Al-Isa 10/5 Definitions of Subsidy Subsidy was initially regarded a payment or a tax concession from the government Subsidy was initially regarded a payment or a tax concession from the government Later extended to include policies that create transfers through the market mechanism. Later extended to include policies that create transfers through the market mechanism.

May19,2005 NAPC,TPD By Yasser Al-Isa 10/6 How is farm support measured By adding up two elements: By adding up two elements: 1. The difference between domestic and world prices for commodities multiplied by the amount produced 2. Budgetary transfers (payments to farmers and budgetary revenue )

May19,2005 NAPC,TPD By Yasser Al-Isa 10/7 The OECD Indicators of Support Producer Support Estimate (PSE) Producer Support Estimate (PSE) Market Price Support (MPS) Market Price Support (MPS) Producer Nominal Protection Coefficient (NPCp) Producer Nominal Protection Coefficient (NPCp) Consumer Support Estimate (CSE) Consumer Support Estimate (CSE) Consumer Nominal Protection Coefficient (NPCc) Consumer Nominal Protection Coefficient (NPCc) General Services Support Estimate (GSSE) General Services Support Estimate (GSSE)

May19,2005 NAPC,TPD By Yasser Al-Isa 10/8 Classify countries Australia second lowest in the OECD, and in 2003 the PSE remained unchanged at 4%. Australia second lowest in the OECD, and in 2003 the PSE remained unchanged at 4%. Canada supplementary payments make up a third of the budgetary component of the PSE for Canada supplementary payments make up a third of the budgetary component of the PSE for European Union the long term reduction in the most trade distorting forms of support and in protection continues in the right direction. European Union the long term reduction in the most trade distorting forms of support and in protection continues in the right direction. Japan little progress has been made to reform agricultural policies since the mid-80s. Japan little progress has been made to reform agricultural policies since the mid-80s. United States production and trade distorting forms of support are still significant, contributing to depressing world prices. United States production and trade distorting forms of support are still significant, contributing to depressing world prices.

May19,2005 NAPC,TPD By Yasser Al-Isa 10/9 Overview of Syrian Agriculture Support Input subsidies were reduced Input subsidies were reduced Market Price Support has varied in relation to world prices Market Price Support has varied in relation to world prices Consumer subsidies are provided with low priced, standard quality Consumer subsidies are provided with low priced, standard quality Export subsidies are required for strategic commodities, whose prices are above world levels, and are exported Export subsidies are required for strategic commodities, whose prices are above world levels, and are exported Taxation (numerous taxes, fees and direct charges) although many of these have been reduced or eliminated in recent years Taxation (numerous taxes, fees and direct charges) although many of these have been reduced or eliminated in recent years

May19,2005 NAPC,TPD By Yasser Al-Isa 10/10 Thank You for Your Attention