Reform of Agricultural Export Credit Programs

This paper examines whether government-sponsored export credit arrangements have the same effect on trade as direct export subsidies. The export credit programs for several major agricultural exporters are described. These programs are compared to OECD disciplines for export credit arrangements, and the consequences of extending these guidelines to agriculture are analysed. None of the programs discussed would be consistent with the OECD guidelines. Since export credit arrangements have many of the same characteristics as targeted export subsidies, the same analytical framework can be used to analyse these programs. However, it is necessary to determine implicit subsidy values for the program.export credit, export subsidy, price discrimination, WTO, International Relations/Trade,

APPROPRIATE REMEDIES FOR NON-TRADE CONCERNS

International Relations/Trade,

Production Effects of the European Union’s Single Farm Payment

Since 1992, reform of the EU’s Common Agricultural Policy has involved several rounds that have gradually changed the method of support from market based intervention purchases to direct producer payments. The change in the method support provides less production incentives and is less trade distorting. The Single Farm Payment (SFP) is the latest policy instrument which is the most decoupled from production decisions. This study examines the SFP in terms of its production effects, its compliance with the Annex 2 of the WTO Agreement on Agriculture, and the implications for Canadian agricultural policy reform.Common Agriculture Policy, decoupled payments, WTO green box, Agricultural and Food Policy, Q17, Q18,

The Effects of Biofuels Policies on Global Commodity Trade Flows

biofuel, Agricultural and Food Policy, Demand and Price Analysis, International Relations/Trade,

European Union Grain Export Practices: Do They Constitute a State Trading Enterprise?

One of the disciplines for State Trading Enterprises (STEs), with respect to the WTO, is the requirement to notify the WTO of all endeavors that fit the definition of an STE. This study argues that the European UnionÂ’'s system of grain interventions and export refunds fits the WTO'Â’s definition of an STE. First, a system of agencies that work together for a common purpose can be considered to be an enterprise. Second, the constituents of EuropeÂ’'s grain intervention enterprise receive exclusive and special rights to export grain. Third, the grain intervention system has decisive voice over the timing, quantity and destination of exports. For these reasons the system should be notified to the WTO as an STE.State Trading Enterprises, European Union, WTO, International Relations/Trade,

Implications of the July 2004 WTO Framework Agreement for Canadian Agriculture

International Relations/Trade,

Biases in calculating dumping Margins: The case of cyclical products

A dumping investigation involves comparing export prices with a “normal value” loosely defined as the price in the exporter’s domestic market observed in the course of normal trade. However, domestic sales with prices below production costs are excluded from the computation of a normal value; thus increasing the probability products with cyclical prices will get caught with positive dumping margins although there are no intentions to dump. The objective of the paper is to illustrate how price cycles impact the magnitude of estimated dumping margins. The empirical analysis focuses on Canadian hog exports to the U.S. and U.S. potato exports to Canada. The period and amplitude of each price cycles are estimated. The analysis starts with the assumption that export and domestic prices are equal so no true dumping occurs. Margins are then calculated based on rules that exclude below cost sales. The resulting average dumping margins for Canadian hogs and U.S. potato exports are respectively 11.5 and 5.9 percent. Biases in dumping margins depend on the nature of the cycle, the period of investigations, and the estimate of the cost of production.Anti-dumping; frequency estimation; price cycles; hog/pork trade disputes; potato antidumping case

Canadian Agriculture and the Doha Development Agenda: The Challenges

The WTO Framework Agreement that negotiators accepted in July 2004, and built upon at the 2005 Hong Kong Ministerial meeting provides a guide to the commitments a Doha Development Agenda agreement may contain. These commitments will relate to direct and indirect export subsidies, domestic support and market access. Commitments in each of these areas will have implications for Canadian agriculture. This article explores these implications for supply management, the Canadian Wheat Board and domestic support programs.Canadian agriculture, Doha, trade liberalization, WTO, International Relations/Trade,

Kill or Shill: Processing Capacity and Cattle Prices with a Closed Border

The discovery of bovine spongiform encephalopathy (BSE) in Alberta and the subsequent U.S. border closure raised concerns about the reliance of Canada’s cattle industry upon U.S. packers. It became clear that Canada lacked the slaughter capacity to support the number of cattle going to market. This and other factors resulted in steep price declines. Since 2003, slaughter capacity has increased by approximately 46 percent. Given that many of the start-ups are small-scale operations that in many cases lack experience and financial backing, questions arise regarding the viability and sustainability of these enterprises. This study examines existing processing capacity as well as planned expansions and discusses the implications for Canadian cattle prices. Even though the U.S. border reopened in July 2005, concerns about slaughter capacity remain. Animals over 30 months of age must still be slaughtered in Canada. There are also ongoing concerns about Canada’s continued ability to export live cattle to the United States. Future exports are threatened by potential trade actions and by unpredictable animal health issues that could again close the border.International Relations/Trade, Livestock Production/Industries,

Canadian Agriculture and the Doha Development Agenda: The Challenges

The WTO Framework Agreement negotiators accepted in July 2004 provides a guide to the commitments a Doha Development Agenda agreement may contain. These commitments will involve direct and indirect export subsidies, domestic support and market access. Commitments in each of these areas will have implications for Canadian agriculture. This paper explores these implications for supply management, the Canadian Wheat Board and domestic support programs.International Relations/Trade,