assessing the agricultural negotiations with atpsm september 2006 david vanzetti division on...
TRANSCRIPT
![Page 1: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/1.jpg)
Assessing the agricultural negotiations with ATPSM
September 2006
David Vanzetti
Division on International Trade in Goods and Services, and Commodities
UNCTAD, Geneva
United Nations Conference on Trade and DevelopmentUnited Nations Conference on Trade and Development
![Page 2: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/2.jpg)
ATPSM
• Agricultural Trade Policy Simulation Model
• Static
• Deterministic
• No stocks
• 35 commodities
• 160 countries plus EU25 plus RoW.
![Page 3: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/3.jpg)
Outline
• Features
• Documentation
• Coverage
• Trade policies
• Outputs
• A likely scenario
• Results
![Page 4: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/4.jpg)
ATPSM Documentation
• Downloadable from website unctad.org/tab• Online help from interface• Updates from website• This ppt presentation available on request
![Page 5: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/5.jpg)
Features
• Free• Easy to use for and researchers, policymakers and
negotiators • Graphical user interface• On-line help function and
handbook available• Report writer - Export to Excel
![Page 6: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/6.jpg)
Limitations
• Bilateral trade issues (non-spatial)• Tariff line level cuts• TRQ definitions (=> overfilled)• C++ version ≠ Excel version
– EU25
– Production quotas
– Land constraint
– Decoupled domestic support
![Page 7: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/7.jpg)
ATPSM Commodity Aggregation (1)
• Livestock• Bovine meat• Sheepmeat• Pigmeat• Poultry• Milk, fresh• Milk, conc. • Butter • Cheese• Hides and skins• Wheat
• Maize • Sorghum • Barley• Rice• Sugar raw• Sugar refined• Oilseeds, temperate• Oilseeds, tropical
• Vegetable oils
![Page 8: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/8.jpg)
ATPSM Commodity Aggregation (2)
• Pulses
• Roots, tubers
• Tomatoes
• Non-tropical fruits
• Citrus fruits
• Bananas
• Other tropical fruits
• Coffee green
• Coffee processed
• Cocoa beans
• Cocoa processed
• Tea
• Tobacco leaves
• Tobacco processed
• Rubber
• Cotton linters
![Page 9: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/9.jpg)
Trade Policies Specified
• Global import quota• Bound in-quota tariff rates• Bound out-of-quota tariff rates• Applied tariff rates• Distribution of quota rents• Export subsidies• Domestic support• Production quota• Not suitable for RTAs
Two tier tariff structure
![Page 10: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/10.jpg)
ATPSM output
• Consumer surplus
• Producer surplus
• Tariff revenue
• Quota rents
• Welfare
• Commodity prices
• Production
• Consumption
• Exports
• Imports
![Page 11: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/11.jpg)
Market Access: Current Tariffs
Bound Applied
High-income countries 51 48Middle-income countries 60 25Low-income countries 78 39
High-income countries 4 3Low & Middle-income countries 20 13
Agriculture
Non-AgricultureSource: UNCTAD TRAINS, WTO
Specific Problems:• Tariff escalation• Tariff peaks
![Page 12: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/12.jpg)
European Union: bound and applied tariff rates
Note: New AVEs (Paris), Five products with tariffs above 500% not plotted.
0
50
100
150
200
250
300
350
400
450
1 159 317 475 633 791 949 1107 1265 1423 1581 1739 1897 2055
Olive oil, refinedSugar, raw
Tea
![Page 13: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/13.jpg)
Developing countries: bound and applied tariff rates
Kenya bound and applied tariffs
0
20
40
60
80
100
120
0 200 400 600 800
bound
applied
Number of tariff lines
Tar
iffs
in p
er c
ent
Bound at ceiling level
Lower applied rates
![Page 14: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/14.jpg)
Market Access: Tiered Formula
Thresholds Cuts
Band % %
1 0 – 30 35
2 30 – 60 45
3 60 – 90 50
4 90 60
Developed Countries
![Page 15: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/15.jpg)
Market Access: Tiered Formula
Thresholds Cuts
Band % %
1 0 – 30 25
2 30 – 80 30
3 80 – 130 35
4 130 40
Developing Countries
![Page 16: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/16.jpg)
Ambitious scenario
• Banded tariff cuts plus caps 100, 150%• Export subsidies -100%• Domestic support -70/-60/-50%, -50%• LDCs 0%.
But• No sensitive products• No special products• No TRQ expansion• No safeguards
![Page 17: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/17.jpg)
Base developing country exports
0100020003000400050006000
700080009000
$m
Total = $117b
![Page 18: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/18.jpg)
Base developing country imports
0100020003000400050006000700080009000
10000
$m
Total = $102b
![Page 19: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/19.jpg)
Base developing country tariff revenueby commodity
0
500
1000
1500
2000
2500
$m
Total = $14.5b
![Page 20: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/20.jpg)
Base implied tariff by commodity
0
20
40
60
80
100
120
%
Total = 14%
![Page 21: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/21.jpg)
Results
• Prices• Exports• Imports• Welfare
![Page 22: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/22.jpg)
Change in world prices
-2
0
2
4
6
8
10
12
14
%
![Page 23: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/23.jpg)
Change in developing country exportsby commodity
-50
0
50
100
150
200
250
%
![Page 24: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/24.jpg)
Change in developing country exportsby commodity
-500
0
500
1000
1500
2000
2500
3000
3500
$m
![Page 25: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/25.jpg)
Change in developing country importsby commodity
-15
-10
-5
0
5
10
15
%
![Page 26: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/26.jpg)
Change in developing country importsby commodity
-400-300-200-100
0100200300400500600
$m
![Page 27: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/27.jpg)
Change in welfareby commodity
-500
0
500
1000
1500
2000
2500
3000
3500
$m
Total = $15004m
![Page 28: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/28.jpg)
Change in welfare Ranked
-1000
0
1000
2000
3000
4000
5000
6000
7000
$m
Total = $15b
45 winners (inc EU25)
![Page 29: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/29.jpg)
Implications
• World prices increase• Increase in exports• Increase in global welfare, $15b• But 116 countries worse off (-ve terms of
trade)– Export subsidy removal– bound > applied = few allocative gains– production quota rent
![Page 30: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/30.jpg)
Improvements?
• Special/sensitive products + compensatory expansion of TRQs
• Tariff line level data• Update data
![Page 31: Assessing the agricultural negotiations with ATPSM September 2006 David Vanzetti Division on International Trade in Goods and Services, and Commodities](https://reader035.vdocuments.mx/reader035/viewer/2022062716/56649e0e5503460f94af8f42/html5/thumbnails/31.jpg)
The End