Do Price Uncertainties Affect the Use of Policy Flexibilities? The Selection of Sensitive Products in WTO Agricultural Negotiations

In a context in which price uncertainty is likely to increase, expected market trends need to be taken carefully into account while negotiating international trade policy rules. This paper aims at analyzing what is their influence on the use of policy flexibilities in the context of WTO agricultural negotiations. In particular, within the market access pillar, we focus on the selection of sensitive products. Our model, TRIMAG (Tariff Reduction Impact Model for Agriculture), defined at the 8-digit level, optimizes the domestic agricultural value added subject to a maximum number of sensitive tariff lines, accounting for various future international price scenarios. Furthermore, we test the use of alternative options for the implementation of “tariff simplification”. Findings confirm that the future expected development of world and domestic prices plays an important role in the selection of sensitive products, and that tariff simplification doesn’t affect the results, if provisions to ensure the neutrality of the exercise are put in place. Furthermore, TRIMAG can be considered as a tariff aggregation tool that can be linked to agricultural simulation models that operate at a higher level of aggregation.WTO agricultural negotiations, market access, sensitive products, International Relations/Trade, F13, Q17,

HOW CAN THE ENERGY USE IN SWISS AGRICULTURE BE ASSESSED IN ECONOMIC AND ECOLOGICAL TERMS?

Replaced with revised version of paper 12/05/07.Energie-Input, Einkommensmaximierung, Mehrzieloptimierung, Effizienz, Energy use, Income maximisation, Multi-objective programming, Efficiency, Resource /Energy Economics and Policy,

Evaluating existing policy flexibilities in WTO agricultural negotiations: different criteria for the selection of sensitive products

Within WTO agricultural negotiations, this paper deals with alternative criteria for the selection of sensitive products. Existing methodologies mostly rely on the analysis of tariffs and trade flows. On the contrary, assessments of the economic impacts on specific groups of stakeholders, namely the domestic agricultural sector, are missing or conducted at a high level of product aggregation. We hence develop a methodology that considers the effects of the selection of sensitive products on domestic agricultural prices. Our model, TRIMAG (Tariff Reduction Impact Model for Agriculture), defined at the 8-digit level, optimizes the domestic agricultural value added subject to a maximum number of sensitive tariff lines. The existing methodologies are applied to the Swiss tariff schedule and results compared with those of TRIMAG. Findings confirm the importance of developing sound economic criteria for the exante impact assessment of policy flexibilities. Furthermore, TRIMAG can be considered as a tariff aggregation tool that can be linked to agricultural simulation models that operate at a higher level of aggregation

HOW CAN THE ENERGY USE IN SWISS AGRICULTURE BE ASSESSED IN ECONOMIC AND ECOLOGICAL TERMS?

This contribution aims to assess agricultural production in energetic and economic terms taking the example of Switzerland. The concept of eco-efficiency is applied. From a methodological point of view, the maximal level of efficiency of energy input is analysed using multiobjective optimisation. From a limited number of alternatives, the economic and energetic efficient alternative is chosen that shows the highest sectoral income in relation to its energy input. The calculations show, that in Swiss plant production more room exists for efficient energy savings than in animal production. In Swiss plain regions, from an solely economic point of view, energy input is considerably higher than under the consideration of energetic aspects in the objective function. On the other hand, in the hill and mountain region, energy use shows a relatively high level of efficiency. Dieser Beitrag hat zum Ziel, die landwirtschaftliche Produktion am Beispiel der Schweiz sowohl aus energetischer, als auch aus ökonomischer Sicht zu bewerten. Dazu wird das Konzept der Öko-Effizienz angewandt. Methodisch wird der maximale Grad der Effizienz des Energie- Inputs mittels Mehrzieloptimierung untersucht. Aus einer begrenzten Anzahl von Varianten wird die ökonomisch und energetisch effizienteste Variante ausgewählt, welche das höchste Sektoreinkommen in Relation zum Energie-Input aufweist. Die Berechnungen ergeben, dass die pflanzliche Produktion in der Schweiz grössere Spielräume zur effizienten Energieeinsparung aufweist als die tierische Produktion. Der Energie-Input in der Schweizer Talregion ist aus rein ökonomischen Aspekten deutlich höher als unter zusätzlicher Berücksichtigung von energetischen Aspekten in der Zielfunktion. Demgegenüber weist der Energie- Input in der Hügel- und Bergregion einen relativ hohen Grad an Effizienz auf

Evaluating existing policy flexibilities in WTO agricultural negotiations: different criteria for the selection of sensitive products

Within WTO agricultural negotiations, this paper deals with alternative criteria for the selection of sensitive products. Existing methodologies mostly rely on the analysis of tariffs and trade flows. On the contrary, assessments of the economic impacts on specific groups of stakeholders, namely the domestic agricultural sector, are missing or conducted at a high level of product aggregation. We hence develop a methodology that considers the effects of the selection of sensitive products on domestic agricultural prices. Our model, TRIMAG (Tariff Reduction Impact Model for Agriculture), defined at the 8-digit level, optimizes the domestic agricultural value added subject to a maximum number of sensitive tariff lines. The existing methodologies are applied to the Swiss tariff schedule and results compared with those of TRIMAG. Findings confirm the importance of developing sound economic criteria for the exante impact assessment of policy flexibilities. Furthermore, TRIMAG can be considered as a tariff aggregation tool that can be linked to agricultural simulation models that operate at a higher level of aggregation.WTO agricultural negotiations, market access, sensitive products, Agricultural and Food Policy, International Relations/Trade, F13, Q17,

Do Price Uncertainties Affect the Use of Policy Flexibilities? The Selection of Sensitive Products in WTO Agricultural Negotiations

In a context in which price uncertainty is likely to increase, expected market trends need to be taken carefully into account while negotiating international trade policy rules. This paper aims at analyzing what is their influence on the use of policy flexibilities in the context of WTO agricultural negotiations. In particular, within the market access pillar, we focus on the selection of sensitive products. Our model, TRIMAG (Tariff Reduction Impact Model for Agriculture), defined at the 8-digit level, optimizes the domestic agricultural value added subject to a maximum number of sensitive tariff lines, accounting for various future international price scenarios. Furthermore, we test the use of alternative options for the implementation of “tariff simplification”. Findings confirm that the future expected development of world and domestic prices plays an important role in the selection of sensitive products, and that tariff simplification doesn’t affect the results, if provisions to ensure the neutrality of the exercise are put in place. Furthermore, TRIMAG can be considered as a tariff aggregation tool that can be linked to agricultural simulation models that operate at a higher level of aggregation