1. A Stocktaking of OECD Work on Subsidies
Outi Honkatukia OECD Secretariat

2. Background
OECD countries committed to reducing subsidies...
…yet only modest progress over the years
 OECD Ministerial mandate 2001

3. OECD work on obstacles to policy reform
Take stock of the ongoing work on subsidies
Identify environmentally harmful subsidies
Analyse experiences in subsidy reform
Develop policy recommendations

4. Caveats
Different methodologies
Data gaps
Different countries
Different years

5. Keep the caveats in mind when looking at the big picture
Billion USD

6. Support to agriculture is high...
… but it is also the sector with the most complete data
311 billion USD in 2001
1.3% of GDP; 31% of the value of farm receipts

7. Modest change in the level of support… %PSE

8. …and in the composition of support.

9. Other sectors pale in comparison
1) Transport: USD 40 billion in road and rail subsidies in Europe
2) Energy producers: USD billion, of which USD 5 billion for coal
3) Manufacturing: USD 22 billion in the EU
4) Fisheries: USD 6 billion

10. Support to coal production has decreased over time...

11. …but not if we look at support per tonne of coal produced

12. What other data sources are there?
1) System of National Accounts
2) WTO Agreement on Subsidies and Countervailing Measures
3) EU State Aid Survey
4) National sources (e.g. Productivity Commission)

13. To conclude
1) Progress made in the measurement and analysis of subsidies
2) Significant gaps remain
3) Stocktaking exercise important for setting priorities and advancing the debate