EU-India free trade agreement : a quantitative assessment
Achterbosch, T.J. ; Kuiper, M.H. ; Roza, P. - \ 2008
The Hague : LEI Wageningen UR (Rapport / LEI : Area 2, Development issues ) - ISBN 9789086152667 - 68
handel - vrijhandel - internationale handel - handelspolitiek - liberalisering van de handel - handelsrelaties - voedselgranen - armoede - toegang - handelsonderhandelingen - wereldmarkten - handelsprotectie - india - europese unie - trade - free trade - international trade - trade policy - trade liberalization - trade relations - food grains - poverty - access - trade negotiations - world markets - trade protection - india - european union
This report analyses the effects of a regional trade agreement (FTA) between the EU and India, for which negotiations are underway. The study starts with abrief overview of the key insights from the existing literature on FTAs and their relationship with multilateral negotiations. The remainder of the study is devoted to analysing the impact of tariff slashes under an FTA on merchandise trade between the EU and India. Of particular interest are the implications for agricultural markets, given the tension between agricultural liberalisation and India's policy goals relating to self-sufficiency in food grains and poverty reduction. The analysis employs GTAP, a global general equilibrium model using a recent database which has 2004 as its reference year. The results suggest that India's interests in a regional trade agreement with the EU are downplayed by the fact that India's economy is not well integrated in global markets. Impacts on the EU are minor and further reduced if a Doha agreement is in place when the FTA is implemented. Results indicate the rationale for a strongly asymmetric arrangement: it would be in the interest of both partners if the EU provides large concessions to India for market access, while India maintains the bulk of current border protection. An EU - India FTA delivers little scope for achieving efficiency gains via adjustments to the pattern of international specialisation. An EU - India agreement on merchandise trade is unlikely to embody substantial preferential treatment with regard to market access. Probably, India can find more suitable FTA partners. Agriculture is a key sector for India in the consideration of equity and growth purposes of a FTA with EU.
Competitiveness of the European Food Industry : an economic and legal assessment 2007
Wijnands, J.H.M. ; Meulen, B.M.J. van der; Poppe, K.J. - \ 2007
Luxemburg : Office for Official Publications of the European Communities - ISBN 9789279060335 - 328
marktconcurrentie - voedselindustrie - ruilvoet - concurrerend vermogen - productiviteit - economische groei - wereldmarkten - internationale handel - wereld - handelsonderhandelingen - agrarische handel - voedingsmiddelenwetgeving - europa - europese unie - market competition - food industry - terms of trade - competitive ability - productivity - economic growth - world markets - international trade - world - trade negotiations - agricultural trade - food legislation - europe - european union
The competitiveness of the European food industry is weak compared to the US and Canada and at approximately the same level as the Australian and Brazilian industry. Scenarios show that unless the productivity growth in the EU is higher than in the rest of the world, EU competitiveness remains weak. Despite the weak competitive performance, a fair number of world leading food enterprises are located in the EU. Moreover the importance of the food industry in total manufacturing is growing, and the sub-sectors value added is higher than that of most other sub-sectors in manufacturing. The impact of food legislation does not seem to affect EU competitiveness negatively compared to the US. In general, EU companies’ view on the food legislation is positive. EU authorities can increase their support for the European industry by engaging in export negotiations. This study is one of the few or maybe even the first one, which included all subsectors of the food industry and benchmarked these with important non-EU countries.
Negociatrix policy game: building capacities in trade policy analysis
Balie, J. ; Hofwegen, G. van; Jongeneel, R. ; Koning, N.B.J. - \ 2007
Rome : FAO - Wageningen UR - 28
internationale handel - handelspolitiek - computersimulatie - computer software - spellen - handelsonderhandelingen - handelsrelaties - voedsel- en landbouworganisatie - agrarische handel - besluitvorming - analyse van besluiten - handelsakkoorden - international trade - trade policy - computer simulation - computer software - games - trade negotiations - trade relations - food and agriculture organization - agricultural trade - decision making - decision analysis - trade agreements
The Negociatrix Policy Game is a tool for training in multilateral negotiation, which has been developed through a partnership between FAO and the University of Wageningen in the Netherlands. This tool is a software based on a quantitative model and a simulation that consents to underline the importance of analytical capacities in negotiations and to demonstrate the importance of consistency of the strategies of negotiation. This software is applied to the multilateral trade negotiations for agriculture. It is inspired by the simulation called Negociatrix (www.fao.org/tc/tca/negotiation) that FAO developed at an earlier stage (2005) and that has been presented at the Harvard PON/IRENE conference in November 2005 in Paris. The software allows simulating several successive rounds of negotiation and notably revealing after each round the impact of the agreement concluded to the previous round. In that sense, the strategy of negotiation adopted can be more directly evaluated. The software is conceived like a tool to support the preparation of decisions and negotiations. This article presents the structure of the software, explains how it works, comments the first application modalities and proposes the conditions of use.
Agricultural Trade Liberalization and the Least Developed Countries
Koning, N.B.J. ; Pinstrup-Andersen, P. - \ 2007
Dordrecht, Netherlands : Springer (Wageningen UR Frontis series vol. 19) - ISBN 9781402060854 - 249
liberalisering van de handel - agrarische handel - handelsonderhandelingen - ontwikkelingslanden - landbouwbeleid - wereldhandelsorganisatie - ontwikkeling - agrarische economie - trade liberalization - agricultural trade - trade negotiations - developing countries - agricultural policy - world trade organization - development - agricultural economics
Although the current round of international trade negotiations was called a `Development Round¿, very little was accomplished before the negotiations stalled in mid-2006. Developing countries as a group stand to gain very substantially from trade reform in agricultural commodities. It is less clear how the 50 countries identified by the United Nations as the `Least Developed Countries¿ (LDCs), which have been subject to special consideration in international trade negotiations, would fare. Would they lose their preferential trade access to the OECD markets and, if so, would these losses exceed the potential gains from liberalized trade? Or would low-income countries that currently receive high prices for commodities such as sugar in some OECD-country markets be out-competed by countries such as Brazil in a liberalized market? More generally, would any benefits from liberalized agricultural trade be captured by middle-income countries with good domestic infrastructure and well-functioning markets, leaving few or no economic benefits to the LDCs? How should the LDCs prepare for multilateral reform of agricultural trade, and should they take policy action now in response to the continuation of the trade-distorting agricultural policies pursued by the OECD countries? To what extent do the LDCs and the middle-income developing countries have common interests with respect to the desired outcomes of the trade round? Are the LDCs well represented by the Group of 21, which consists primarily of middle-income countries with strong export potential in agriculture, or should they pursue a different set of goals in future negotiations? In this book, several experts on international trade and development address these and related questions
Agricultural market access proposals in the Doha round : Dutch agro-food interests
Kuiper, M.H. ; Banse, M.A.H. - \ 2007
Den Haag : LEI (Report / LEI : Domain 6, Policy ) - ISBN 9789086151547 - 87
landbouwbeleid - handelsonderhandelingen - liberalisering van de handel - wereldhandelsorganisatie - internationale handel - toegang - markten - wereldmarkten - tarieven - handelsbarrières - landbouwproducten - nederland - agricultural policy - trade negotiations - trade liberalization - world trade organization - international trade - access - markets - world markets - tariffs - trade barriers - agricultural products - netherlands
This report analyses the impact of market access proposals tabled in the current WTO Doha round. The first part of the study assesses the 'bite' of tariff reductions by comparing border prices of Dutch products with those of imports before and after implementing tariff reductions. The second part of the study analyses the impact of proposals for sensitive products in terms of tariff rate quota (TRQ) expansion and highlights complexities surrounding the implementation of the proposals.
The allocation of scarce resources in miscellaneous cases
Hamsvoort, C.P.C.M. van der - \ 2006
Wageningen University. Promotor(en): Henk Folmer; L.C. Zachariasse. - [S.l. ] : S.n. - ISBN 9789086150526 - 126
middelentoewijzing - hulpbronnen - economische theorie - duurzaamheid (sustainability) - veilingen - landbouwgrond - grondmarkten - handelsonderhandelingen - milieu - landgebruiksplanning - schaarste - resource allocation - resources - economic theory - sustainability - auctions - agricultural land - land markets - trade negotiations - environment - land use planning - scarcity
Key words: sustainable development, environmental utilization space (EUS), auctions, conservation contracting, information asymmetry, agricultural land market, Town and Country Planning Act,AMS, agricultural trade negotiations, PSE. This book presents a number of papers that address different allocation problems. Each of them applies to specific situations, defined by the conditions assumed in the model. The papers appeared previously in different outlets and are reprinted by permission of the co-authors and publishers.
The first paper - 'Sustainability: a review of the debate and an extension'- argues that the current debate on sustainability is obscured by a number of misunderstandings. These relate, first, to the ongoing dispute between ecologists and economists holding different visions about the limits of economic growth and the carrying capacity of the Earth; and second, to the discrepancy between theoretical sustainability and practical sustainability. The paper concludes that the current vagueness surrounding sustainability may be reduced by reframing the debate. It demonstrates that the dispute between ecologists and economists can largely be considered as unproductive because the only sustainability concept supported by theory is that of 'strong sustainability'. The paper argues further that the gap between theoretical and practical sustainability may be bridged by distinguishing three concepts which properly account for informational inadequacies and human preferences in the design of sustainability constraints. These are: the 'sustainable EUS' (Environmental Utilization Space), the 'measured EUS', and the 'chosen EUS'.
In the second paper - 'Auctioning conservation contracts: a theoretical analysis and an application' - Auction theory is used to analyze the potential benefits of auctions in allocating contracts for the provision of nonmarket goods in the countryside. A model of optimal bidding for conservation contracts is developed and applied to a hypothetical conservation programme. The study shows that competitive bidding, compared to fixed‑rate payments, can increase the cost effectiveness of conservation contracting significantly. The cost revelation mechanism inherent in the bidding process makes auctions a powerful means by which to reduce the problems of information asymmetry. The study also shows that strategic bidding behaviour, which may adversely affect the performance of sequential auctions, is difficult to address by means of auction design.
The third paper - 'Auctions as a means of creating a market for public goods from agriculture' - looks at the possibility of creating a market for environmental goods and services in the countryside by awarding conservation contracts to farmers on the basis of competitive bidding. Auctions have several theoretical advantages over alternative allocation mechanisms (such as standard‑rate payments) because they allow the participants to deal with informational asymmetries and the uncertainty about the value of the (nonmarket) goods being traded. A formal model of bidding behaviour in 'green auctions' shows that bidding strategies are determined by the individual farmers' costs of implementing the conservation contracts and their beliefs about the maximum acceptable payment level, making the auction an imperfect cost revelation mechanism. Auctions can reduce the information rents accruing to farmers and can increase the cost‑effectiveness of public goods provision. Strategic bidding behaviour in multiple‑signup auctions as well as high transaction costs are potential sources of reduced efficiency.
The fourth paper - 'The pivotal role of the agricultural land market in the Netherlands' -analyzes the allocation of space in the Netherlands. In particular the effect of the 'Town and Country Planning Act', government policies in respect of agriculture, nature, landscape, and the environment and developments in agricultural and non-agricultural sectors on the allocation and price of agricultural land. The study shows that viewed separately, the environmental, nature, and agricultural policies might be consistent with the goals they are supposed to achieve, but in interaction they are conflicting and preclude the simultaneous achievement of these very same objectives. The study also shows that the agricultural land market plays a pivotal role in this network of interactions. The EU market and price policy, with the exception of the milk quotas, caused the price of land to rise, and subsequently the land price rose again due to the environmental and nature policy needed to compensate for the negative effects of that agricultural policy. In addition, the economic boom of the late '90s created a great many 'red' claims on agricultural land, which in combination with an unsteady 'Town and Country Planning Act', drives up land prices along with the general increase in real estate prices. For farmers, the resulting extremely high land price was reason to make even more intensive use of land.Finally, the fifth paper - 'The AMS in agricultural trade negotiations: a review' - reviews the role of the Aggregate Measure of Support (AMS) in the agricultural trade negotiations of the Uruguay Round. Contrary to expectations at the start of these negotiations, the AMS only occupies a subsidiary position in the final agreement. In order to explain this, first an economic analysis is presented of the Producer Subsidy Equivalent (PSE), the basic AMS concept in the GATT discussions. Secondly, the political AMS debate is described and analyzed, using information from unpublished GATT documents. Although the PSE concept is based on simple assumptions, its measurement already meets a number of difficult problems (policy coverage, product coverage, external references prices, currency). Once these are solved, the concept may offer a brief insight into actual governmental support in agriculture. However, the calculations do not provide a sound measure of the trade distortions caused by agricultural policies. Mainly for that reason, the idea of a pure aggregated approach - based on the AMS - proved unsuccessful in the negotiations. Instead, the Contracting Parties accepted the framework of making binding agreements on three separate areas: internal support, market access and export support. While important and very specific commitments were made in the areas of agricultural imports and exports, the AMS has only found application in the internal support area.
Economic benefits of the Doha round for The Netherlands; Report submitted to the Ministry of Economic Affairs,
Francois, J. ; Meijl, H. van; Tongeren, F.W. van - \ 2003
Den Haag : LEI (Report / LEI : Domain 6, Policy ) - ISBN 9789052427874 - 111
agrarische economie - wereldhandelsorganisatie - handelsonderhandelingen - liberalisering van de handel - internationale handel - economische impact - europese unie - nederland - agricultural economics - world trade organization - trade negotiations - trade liberalization - international trade - economic impact - european union - netherlands
This study provides insights into the nature and magnitude of the impacts of the WTO Doha Round for international trade and the resulting welfare improvements. The analysis of specific economic consequences for the Netherlands is a special feature of this study. These effects at national level are considered in the context of overall effects at EU and world levels. A third of the estimated benefit is attributable to trade facilitation, a third to agricultural liberalisation and the remaining third to both reductions in industrial tariffs and liberalisation in services. The analysis underlines the importance of trade policy reform by developing countries for achieving the benefits of freer trade. About one quarter of the global gains can only be realized if developing countries actively participate. The results highlight the importance of taking a long-term structural view. Developing countries have to think carefully about the risks of reinforcing an emphasis on primary exports. The Netherlands, could enjoy a disproportionate share of world welfare gains. Dutch output would expand particularly in the food processing and the transport and logistics sectors. The results confirm the comparative advantage of the Netherlands in agriculture, food processing and transport and the large dependence of the Dutch economy on international trade.
European policy issues in a global trade analysis framework
Tongeren, F.W. van; Meijl, J.C.M. van - \ 2001
The Hague : LEI - ISBN 9789052426655 - 113
landbouwbeleid - handelsonderhandelingen - consumenten - europese unie - agricultural policy - trade negotiations - consumers - european union