By Organisation for Economic Co-Operation and Development
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Extra info for Agricultural Trade and Poverty: Making Policy Analysis Count
Low supply and demand response). Third, the Aglink commodities represent two-thirds of the calorie consumption in these countries and the remaining third is assumed not to change following the modest changes seen in these scenarios. While this work does highlight the potential for investment to further market integration, the form of higher price transmission or greater supply response, these results must be understood within context of the model framework and within the narrow focus of the study.
2. ” 33 and the imports exceed the quota; or (3) market conditions may be such that the quota is not filled, so imports are less than the quota with price equal to the world price plus the lower, in-quota tariff. Where previously the model frequently assumed that one or the other circumstance was relevant during the Outlook process, this analysis required that the model would switch among these three possibilities in an endogenous manner. Thus, falling world price, higher domestic demand or lower domestic supply may result in imports that start below the quota level (with price equal to world price plus in-quota tariff) to rise to the quota level or, alternatively, imports currently at the quota level to exceed the quota level (and price to rise to be equal to world price plus out-of-quota tariff).
They depress world prices. Like the European Union, the United States has a few well-established bastions of protectionism relying on restrictive TRQs (sugar, dairy, and peanuts) and countervailing duties (lamb). In 2000, dairy had a PSE of 50%, which was the highest PSE among all US commodities in 2000. TRQs are in place for virtually all dairy products, raw and refined sugar, peanut-based products, and some meat products. The United States resorts to small explicit exports subsidies for dairy products (USD 78 million in 1999) and for poultry although the latter is marginal according to WTO notifications (WTO, various).
Agricultural Trade and Poverty: Making Policy Analysis Count by Organisation for Economic Co-Operation and Development