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Milk is one of the most supported agricultural commodities, and world dairy markets are characterised by a high degree of distortion. Although there is a strong case for dairy policy reform, a clear understanding of the dairy sector's specific characteristics and of policy measures' operational features is necessary for any reform process to be successful. This report is an attempt to improve such understanding through an analysis of the trade and economic effects of the main policy measures applied to the dairy sector. In particular, it examines the effects of both milk price support measures and milk quota systems. The removal of individual policy measures is modelled in order to assess the impact of international dairy trade liberalisation on production, consumption, trade, prices, income, and welfare. The primary focus of this report is the impact of policies and reform in the OECD area, although the consequences for other economies are also examined. In addition, this report offers economic insights into the workings of complex dairy policy measures and provides a discussion of the potential of the dairy sector -- globally and in individual countries -- as it adjusts to liberal trading conditions
A partial-equilibrium, multiple-commodity, multiregion model of agricultural policy and trade is used to simulate the effects of changes in domestic and trade policy on dairy production, consumption, prices, and trade. Simulations using the ERS-Penn State Trade model analyze the effects of separately and concurrently relaxing domestic income and price supports, and import restrictions and export subsidies, with special attention to tariff-rate and milk production quotas. Modeling results indicate that liberalization would reduce world dairy product supplies and increase the value of dairy trade.
Trade in services, far more than trade in goods, is affected by a variety of domestic regulations, ranging from qualification and licensing requirements in professional services to pro-competitive regulation in telecommunications services. Experience shows that the quality of regulation strongly influences the consequences of trade liberalization. WTO members have agreed that a central task in the ongoing services negotiations will be to develop a set of rules to ensure that domestic regulations support rather than impede trade liberalization. Since these rules are bound to have a profound impact on the evolution of policy, particularly in developing countries, it is important that they be conducive to economically rational policy-making. This book addresses two central questions: What impact can international trade rules on services have on the exercise of domestic regulatory sovereignty? And how can services negotiations be harnessed to promote and consolidate domestic policy reform across highly diverse sectors? The book, with contributions from several of the world's leading experts in the field, explores a range of rule-making challenges arising at this policy interface, in areas such as transparency, standards and the adoption of a necessity test for services trade. Contributions also provide an in-depth look at these issues in the key areas of accountancy, energy, finance, health, telecommunications and transportation services.
Trade flows and trade policies need to be properly quantified to describe, compare, or follow the evolution of policies between sectors or countries or over time. This is essential to ensure that policy choices are made with an appropriate knowledge of the real conditions. This practical guide introduces the main techniques of trade and trade policy data analysis. It shows how to develop the main indexes used to analyze trade flows, tariff structures, and non-tariff measures. It presents the databases needed to construct these indexes as well as the challenges faced in collecting and processing these data, such as measurement errors or aggregation bias. Written by experts with practical experience in the field, A Practical Guide to Trade Policy Analysis has been developed to contribute to enhance developing countries' capacity to analyze and implement trade policy. It offers a hands-on introduction on how to estimate the distributional effects of trade policies on welfare, in particular on inequality and poverty. The guide is aimed at government experts engaged in trade negotiations, as well as students and researchers involved in trade-related study or research. An accompanying DVD contains data sets and program command files required for the exercises. Copublished by the WTO and the United Nations Conference on Trade and Development
This publication displays the menu for choice of available methods to evaluate the impact of Free Trade Agreements (FTAs). It caters mainly to policy makers from developing countries and aims to equip them with some economic knowledge and techniques that will enable them to conduct their own economic evaluation studies on existing or future FTAs, or to critically re-examine the results of impact assessment studies conducted by others, at the very least.
Global Agricultural Trade and Developing Countries presents research findings based on a series of commodity studies of significant economic importance to developing countries. The book sets the stage with background chapters and investigations of cross-cutting issues. It then describes trade and domestic policy regimes affecting agricultural and food markets, and assesses the resulting patterns of production and trade. The book continues with an analysis of product standards and costs of compliance and their effects on agricultural and food trade. The book also investigates the impact of preferences given to selected countries and their effectiveness, then reviews the evidence on the attempts to decouple agricultural support from agricultural output. The last background chapter explores the robustness of the global gains of multilateral agricultural and food trade liberalization. Given this context, the book presents detailed commodity studies for coffee, cotton, dairy, fruits and vegetables, groundnuts, rice, seafood products, sugar, and wheat. These markets feature distorted policy regimes among industrial or middle-income countries. The studies analyze current policy regimes in key producing and consuming countries, document the magnitude of these distortions and estimate the distributional impacts - winners and losers - of trade and domestic policy reforms. By bringing the key issues and findings together in one place, Global Agricultural Trade and Developing Countries aids policy makers and researchers, both in their approach to global negotiations and in evaluating their domestic policies on agriculture. The book also complements the recently published Agriculture and the WTO, which focuses primarily on the agricultural issues within the context of the WTO negotiations.