Chapter 6 Data Base Summary: Protection and Support

Transcription

1 Chapter 6 Data Base Summary: Protection and Support Betina V. Dimaranan and Robert A. McDougall This chapter provides a summary of the protection data in the GTAP 6 Data Base. Specifically, the chapter provides summary tables on average import tariff rates, average export subsidy rates, and on agricultural domestic support in the form of output subsidies, intermediate input subsidies, landbased payments, and capital-based payments. The detailed description of the data sources and procedures involved in the preparation of the protection data can be found in chapter Average Import Tariffs The tariff data for the GTAP 6 Data Base has changed significantly in terms of sourcing, coverage, nature and quality, and data processing. In the GTAP 5 Data Base, agricultural tariffs and merchandise tariffs were obtained from the two separate sources. Agricultural tariff data were obtained from the Agricultural Trade Policy Database which is based on the Agricultural Market Access Database (AMAD). The non-bilateralized data on agricultural tariffs for 46 countries were MFN applied rates for 1998, where available, or bound rates for countries where applied rates were not reported. Data on merchandise tariffs were obtained from the World Bank and UNCTAD through an early version of the World Integrated Trade Software (WITS). Bilateral, MFN applied, trade-weighted tariff data for 1997 or for the closest available year were obtained for 118 importers and 238 partner exporters. The 2001 tariff data in the GTAP 6 Data Base is from the Market Access Maps (MAcMap) contributed by the Centre d'etudes Prospectives et d'information Internationales (CEPII). The MAcMap data base is compiled from UNCTAD TRAINS data, country notifications to the WTO, AMAD, and from national customs information. Preliminary documentation about the MAcMap database, its sources and methodology is available in Chapter 16.D. In the GTAP 6 Data Base, we use trade-weighted preferential rates data on ad valorem tariffs (including tariff rate quotas) plus the ad valorem equivalents (AVEs) of specific tariffs. The MAcMap tariff data for agriculture and merchandise commodities is provided to GTAP at the GTAP sectoral classification for 163 importer countries and 208 partner exporters. The data are then aggregated to the GTAP regional classification using GTAP's reconciled bilateral trade data as weights. Table 6.1 presents average import tariffs by commodity and importing region. Although obtained at the tariff line level, the data contributors aggregate the tariff data and provide them at the aggregated GTAP sectoral concordance. The table presents the import tariff rates for each GTAP

2 6-2 importing region, by commodity, averaged over all source regions. Trade between free trade areas have been excluded in the calculation of these averages. As shown in table 6.1, the GTAP 6 regional aggregation captures some of the very large distortions in agricultural trade. Grains, in general, are most highly protected in regions like Japan, Korea, Switzerland, and the Rest of EFTA (XEF). Processed sugar is most heavily protected in Japan, Taiwan, and the European Union. Meat products enjoy high protection rates in EFTA, Cyprus, Morocco, and Tunisia. Tariff rates on dairy products are highest in Canada followed by Turkey, Tunisia, Rest of EFTA, and Cyprus. Beverages and tobacco, a highly heterogeneous commodity group, is highly taxed in India, Malaysia, and the Rest of Oceania. On the non-food side, protection in the wearing apparel and textiles sectors, tend to be higher than that for the other manufacturing sectors. Wearing apparel is very highly taxed in the Rest of North Africa which includes Egypt. Across countries, Thailand, Vietnam, Bangladesh and India also have relatively higher tariffs on these sectors. The motor vehicles and parts sector is also relatively highly protected among the manufacturing sectors with the highest tariff rates occurring in the South Asian and Southeast Asian countries and in China. Since we are now using preferential rates tariff data, we have stopped using our previous approach of applying zero rates for known free trade areas (CER, NAFTA, EU, EU-EFTA, and SACU). In the case of missing data, we still use our usual approach of using the protection rates implied in the input-output tables. However, we have excluded services commodities from this practice. 6.2 Average Export Subsidies/Taxes As in GTAP 5, data on agricultural export subsidies in the GTAP 6 Data Base are based on information from country submissions to the World Trade Organization on export subsidy expenditures. This is a significant departure from the data sourcing in GTAP 4 where agricultural export subsidies were computed from the price gap between the market price and world price of each commodity, based on the values of market price support in the OECD PSE database. Further details about the agricultural export subsidy data is available in chapter 16.E. The agricultural export subsidy data cover primary agriculture and processed food commodities. Table 6.2 reports the average export subsidy rates for food and agriculture as well as the average export tax equivalent rates of the quotas under the Agreement on Textiles and Clothing (ATC).Trade between free trade areas have been excluded in the calculation of these averages. Export subsidies are prevalent and sizeable for cattle/sheep meat, other meat, dairy products, cereal grains, processed rice, and refined sugar. The agricultural export subsidy rates are generally highest in the European Union and Switzerland. The average export tax equivalent rates of the ATC quotas are highest in China, followed by Indonesia, India, the Rest of South Asia, and the Russian Federation. Note that large average

3 6-3 export subsidy rates for textiles and wearing apparel are reported for Uruguay and Rest of South America. Since the averages were calculated from the comprehensive export-side measure, these large export subsidies are due to subsidy data extracted from the I-O tables which more than offset the export tax equivalents of the ATC quotas in these countries. 6.3 Domestic Support in Agriculture In constructing the GTAP 6 Data Base, we followed the same procedure and mapping of the PSE components into four domestic support categories (output subsidies, input subsidies, land-based payments, and capital-based payments) that we used in the GTAP 5 Data Base. However, there are a couple of changes in the coverage of the domestic support data. The country coverage of the data has been expanded to include some non-oecd member countries. The second modification is in the treatment of data for the following GTAP sectors: fruits and vegetables (v_f), plant-based fibers (pfb), and other crops (ocr). Since these GTAP commodities are not separately identified in the OECD PSE/CSE database but are all grouped under "Miscellaneous Commodities", we did not have domestic support data for these sectors in the GTAP 5 Data Base. For GTAP 6, disaggregated data for these commodities is available for the EU countries. To have a treatment parallel for non-eu countries, we assigned the average domestic support reported for "Miscellaneous Commodities" in the OECD PSE data uniformly to these GTAP commodities for the non-eu countries covered in the domestic support dataset. The estimates of domestic support are based on 2001 PSE data for the OECD countries Output Subsidies What are classified as output subsidies in the GTAP 6 Data Base are a considerably small component of total payments in the PSE data. Thus the output subsidy rates reported in table 6.3 are relatively smaller and far different from those in the GTAP 4 Data Base. Where available, output subsidy\tax data was also extracted from the input-output tables and applied to missing data, i.e. for the non- OECD countries. The output subsidy rates are especially significant for plant-based fibers in the United Kingdom, Finland, Austria and the Netherlands. Output subsidies are also quite significant for oilseeds in Portugal, Spain, Greece, Mexico and Japan. Output of paddy rice is significantly subsidized in the United States. Raw milk output is subsidized in Switzerland and the Rest of EFTA. A significant subsidy on wool output is given is the Rest of EFTA (which includes Norway). Some of the output subsidies and output taxes extracted from the I-O tables for the non- OECD countries are non-trivial. This is especially true for some countries in Southeast Asia, South Asia, Latin America, and Southern Africa.

4 Average Intermediate Input Subsidies The rates of intermediate input subsidies reported in Table 6.4 are average rates for all intermediate inputs, domestic and foreign, excluding energy inputs, used in the production of primary agricultural commodities. The input subsidies are based on the value of payments on input use for variable inputs and on-farm services in the PSE tables for OECD countries. Average input subsidy rates are highest at greater than 85 percent for the production of other crops and cattle/sheep meat in Finland, oilseeds in Mexico, and wool in the Rest of EFTA. Average subsidy rates on intermediate inputs for oilseeds, wheat, cereal grain, and cattle\sheep meat production are generally quite significant in the European Union and the Rest of EFTA. For the other OECD countries, average input subsidy rates are also greater than 20 percent for the production of paddy rice and other crops in Greece, vegetables and fruits in Ireland, plant-based fibers in Belgium, and sugarcane and sugar beets and raw milk in Finland. Intermediate input subsidy rates for primary agriculture are all lower than 10 percent in Australia, New Zealand, Korea, Canada, Czech Republic, Poland, and Slovakia Factor-based Payments In the GTAP 5 Data Base, factor-based payments represented the gap between the payments made by firms for factors at agents prices and at market prices. In GTAP 6, this gap includes both the factor-based subsidies as well as the newly introduced data on factor taxes. Table 6.5 shows the rates of land-based payments. These are particularly large, mostly greater than 85 percent, for wheat, cereal grains, and oilseeds in the European Union, and at slightly lower rates in EFTA. In the other OECD countries, land-based payment rates are also quite significant at more than 65 percent for wheat production in Canada, the United States and EFTA, oilseeds in Canada, plant-based fibers in Canada, Switzerland, Czech Republic, Hungary, and Slovakia, and wool in the United States. Land-based subsidy rates are also significant for the production of paddy rice in some European Union countries (France, Spain, Italy, Portugal, and Greece). The rates of capital-based payments are reported in table 6.6. The rates are highest for the production of cattle\sheep meat in the European Union. Also significant are the EU capital-based subsidy rates for the production of oilseeds, wheat, cereal grains, other animal products and raw milk. In the other OECD countries, capital-based payment rates are also quite significant at more than 65 percent for plant-based fibers and raw milk in the Czech Republic, Hungary, and Slovakia, cattle\sheep meat in Korea, Czech Republic, and Slovakia, and other animal products in Slovakia.

5 6-5 Table 6.1 Average Import Tariff Rates, by Commodity and Importing Region AUS NZL XOC CHN HKG JPN KOR TWN XEA IDN MYS pdr wht gro v_f osd c_b pfb ocr ctl oap rmk wol frs fsh coa oil gas omn cmt omt vol mil pcr sgr ofd b_t tex wap lea lum ppp p_c crp nmm i_s nfm fmp mvh otn ele ome omf ely

6 6-6 Table 6.1 Average Import Tariff Rates, by Commodity and Importing Region (Contd) PHL SGP THA VNM XSE BGD IND LKA XSA CAN USA pdr wht gro v_f osd c_b pfb ocr ctl oap rmk wol frs fsh coa oil gas omn cmt omt vol mil pcr sgr ofd b_t tex wap lea lum ppp p_c crp nmm i_s nfm fmp mvh otn ele ome omf ely

7 6-7 Table 6.1 Average Import Tariff Rates, by Commodity and Importing Region (Contd) MEX XNA COL PER VEN XAP ARG BRA CHL URY XSM pdr wht gro v_f osd c_b pfb ocr ctl oap rmk wol frs fsh coa oil gas omn cmt omt vol mil pcr sgr ofd b_t tex wap lea lum ppp p_c crp nmm i_s nfm fmp mvh otn ele ome omf ely

8 6-8 Table 6.1 Average Import Tariff Rates, by Commodity and Importing Region (Contd) XCA XFA XCB AUT BEL DNK FIN FRA DEU GBR GRC pdr wht gro v_f osd c_b pfb ocr ctl oap rmk wol frs fsh coa oil gas omn cmt omt vol mil pcr sgr ofd b_t tex wap lea lum ppp p_c crp nmm i_s nfm fmp mvh otn ele ome omf ely

9 6-9 Table 6.1 Average Import Tariff Rates, by Commodity and Importing Region (Contd) IRL ITA LUX NLD PRT ESP SWE CHE XEF XER ALB pdr wht gro v_f osd c_b pfb ocr ctl oap rmk wol frs fsh coa oil gas omn cmt omt vol mil pcr sgr ofd b_t tex wap lea lum ppp p_c crp nmm i_s nfm fmp mvh otn ele ome omf ely

10 6-10 Table 6.1 Average Import Tariff Rates, by Commodity and Importing Region (Contd) BGR HRV CYP CZE HUN MLT POL ROM SVK SVN EST pdr wht gro v_f osd c_b pfb ocr ctl oap rmk wol frs fsh coa oil gas omn cmt omt vol mil pcr sgr ofd b_t tex wap lea lum ppp p_c crp nmm i_s nfm fmp mvh otn ele ome omf ely

11 6-11 Table 6.1 Average Import Tariff Rates, by Commodity and Importing Region (Contd) LVA LTU RUS XSU TUR XME MAR TUN XNF BWA XAF pdr wht gro v_f osd c_b pfb ocr ctl oap rmk wol frs fsh coa oil gas omn cmt omt vol mil pcr sgr ofd b_t tex wap lea lum ppp p_c crp nmm i_s nfm fmp mvh otn ele ome omf ely

12 6-12 Table 6.1 Average Import Tariff Rates, by Commodity and Importing Region (Contd) XSC MWI MOZ TZA ZMB ZWE XSD MDG UGA XSS pdr wht gro v_f osd c_b pfb ocr ctl oap rmk wol frs fsh coa oil gas omn cmt omt vol mil pcr sgr ofd b_t tex wap lea lum ppp p_c crp nmm i_s nfm fmp mvh otn ele ome omf ely

13 6-13 Table 6.2 Export Subsidies for Agriculture, Food Production, Textiles amd Wearing Apparel (Per cent Market Values) AUS NZL XOC CHN HKG JPN KOR TWN XEA IDN MYS pdr wht gro v_f osd c_b pfb ocr ctl oap rmk cmt omt vol mil pcr sgr ofd b_t tex wap PHL SGP THA VNM XSE BGD IND LKA XSA CAN USA pdr wht gro v_f osd c_b pfb ocr ctl oap rmk cmt omt vol mil pcr sgr ofd b_t tex wap

14 6-14 Table 6.2 Export Subsidies for Agriculture, Food Production, Textiles amd Wearing Apparel (Per cent Market Values) (Contd) MEX XNA COL PER VEN XAP ARG BRA CHL URY XSM pdr wht gro v_f osd c_b pfb ocr ctl oap rmk cmt omt vol mil pcr sgr ofd b_t tex wap XCA XFA XCB AUT BEL DNK FIN FRA DEU GBR GRC pdr wht gro v_f osd c_b pfb ocr ctl oap rmk cmt omt vol mil pcr sgr ofd b_t tex wap

15 6-15 Table 6.2 Export Subsidies for Agriculture, Food Production, Textiles amd Wearing Apparel (Per cent Market Values) (Contd) IRL ITA LUX NLD PRT ESP SWE CHE XEF XER ALB pdr wht gro v_f osd c_b pfb ocr ctl oap rmk cmt omt vol mil pcr sgr ofd b_t tex wap BGR HRV CYP CZE HUN MLT POL ROM SVK SVN EST pdr wht gro v_f osd c_b pfb ocr ctl oap rmk cmt omt vol mil pcr sgr ofd b_t tex wap

16 6-16 Table 6.2 Export Subsidies for Agriculture, Food Production, Textiles amd Wearing Apparel (Per cent Market Values) (Contd) LVA LTU RUS XSU TUR XME MAR TUN XNF BWA ZAF pdr wht gro v_f osd c_b pfb ocr ctl oap rmk cmt omt vol mil pcr sgr ofd b_t tex wap XSC MWI MOZ TZA ZMB ZWE XSD MDG UGA XSS pdr wht gro v_f osd c_b pfb ocr ctl oap rmk wol cmt omt vol mil pcr sgr ofd b_t tex wap

17 6-17 Table 6.3 Output Subsidies for Primary Agriculture (Per cent Market Values) AUS NZL XOC CHN HKG JPN KOR TWN XEA IDN MYS pdr wht gro v_f osd c_b pfb ocr ctl oap rmk wol PHL SGP THA VNM XSE BGD IND LKA XSA CAN USA pdr wht gro v_f osd c_b pfb ocr ctl oap rmk wol MEX XNA COL PER VEN XAP ARG BRA CHL URY XSM pdr wht gro v_f osd c_b pfb ocr ctl oap rmk wol

18 6-18 Table 6.3 Output Subsidies for Primary Agriculture (Per cent Market Values) (Contd) XCA XFA XCB AUT BEL DNK FIN FRA DEU GBR GRC pdr wht gro v_f osd c_b pfb ocr ctl oap rmk wol IRL ITA LUX NLD PRT ESP SWE CHE XEF XER ALB pdr wht gro v_f osd c_b pfb ocr ctl oap rmk wol BGR HRV CYP CZE HUN MLT POL ROM SVK SVN EST pdr wht gro v_f osd c_b pfb ocr ctl oap rmk wol

19 6-19 Table 6.3 Output Subsidies for Primary Agriculture (Per cent Market Values) (Contd) LVA LTU RUS XSU TUR XME MAR TUN XNF BWA ZAF pdr wht gro v_f osd c_b pfb ocr ctl oap rmk wol XSC MWI MOZ TZA ZMB ZWE XSD MDG UGA XSS pdr wht gro v_f osd c_b pfb ocr ctl oap rmk wol

20 6-20 Table 6.4 Input Subsidies for Primary Agriculture (Per cent Market Values) AUS NZL XOC CHN HKG JPN KOR TWN XEA IDN MYS pdr wht gro v_f osd c_b pfb ocr ctl oap rmk wol PHL SGP THA VNM XSE BGD IND LKA XSA CAN USA pdr wht gro v_f osd c_b pfb ocr ctl oap rmk wol MEX XNA COL PER VEN XAP ARG BRA CHL URY XSM pdr wht gro v_f osd c_b pfb ocr ctl oap rmk

21 6-21 Table 6.4 Input Subsidies for Primary Agriculture (Per cent Market Values) (Contd) XCA XFA XCB AUT BEL DNK FIN FRA DEU GBR GRC pdr wht gro v_f osd c_b pfb ocr ctl oap rmk IRL ITA LUX NLD PRT ESP SWE CHE XEF XER ALB pdr wht gro v_f osd c_b pfb ocr ctl oap rmk wol BGR HRV CYP CZE HUN MLT POL ROM SVK SVN EST pdr wht gro v_f osd c_b pfb ocr ctl oap rmk

22 6-22 Table 6.4 Input Subsidies for Primary Agriculture (Per cent Market Values) (Contd) LVA LTA RUS XSU TUR XME MAR TUN XNF BWA ZAF pdr wht gro v_f osd c_b pfb ocr ctl oap rmk XSC MWI MOZ TZA ZMB ZWE XSD MDG UGA XSS pdr wht gro v_f osd c_b pfb ocr ctl oap rmk wol

23 6-23 Table 6.5 Land-Based Payments, Primary Agriculture (Percent Market Values) AUS NZL XOC CHN HKG JPN KOR TWN XEA IND MYS pdr wht gro v_f osd c_b pfb ocr ctl oap rmk wol PHL SGP THA VNM XSE BGD IND LKA XSA CAN USA pdr wht gro v_f osd c_b pfb ocr ctl oap rmk wol MEX XNA COL PER VEN XAP ARG BRA CHL URY XSM pdr wht gro v_f osd c_b pfb ocr ctl oap rmk