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policy_data

Policy data

Policy data linked to European and international markets

Data on trade policies on the global agri-food markets first appear in the global database of CAPRI. More specifically, the original tariff data are aggregated to the commodity definitions of CAPRI in the tariff aggregation module. The tariff aggregation procedures in CAPRI require data not only on the tariffs themselves but also on traded quantities and import prices. two tariff/trade databases are supported currently:

  1. AMAD database, which is unfortunately discontinued by OECD and is expected to be phased out from the CAPRI system as database updates will be no longer available.
  2. ITC-MacMap and ITC-TradeMap database. MacMap includes ad valorem equivalent tariff rates at the 6-digit level of the Harmonized System (HS6), while TradeMap supplies the necessary trade statistics (quantities and prices) for the aggregation.

The tariff aggregation results are part of the .gdx output of the global module, and can be found in results\global\tariffs.gdx.

Although the tariffs in the tariff databases should already reflect the tariff schedules of the implemented Free Trade Agreements (FTA) on global agricultural markets, CAPRI nevertheless explicitly includes data on a number of FTAs. That FTA-specific policy information enters the CAPRI system in the market model calibration workstep (gams\arm\def_tariff.gms, see Table below for the list of implemented FTAs).

Table 21: Free Trade Agreements considered in CAPRI

Free Trade Agreements explicitly included in CAPRI
- EU-Chile FTA
- EU's Economic Partnership Agreements (Cotonue) with ACP countries
- EU-Mediterranean partnership agreement
- EU-Mexico FTA
- Trade Agreements with Norway and Switzerland (including quota system)
- Customs Union with Turkey
- Stabilisation and Association Agreements with Western Balkan countries
- Free Trade Area with Ukraine (partly)
- Economic Cooperation Framework Agreement between Taiwan and Mainland China

Source: own compillation

Specific trade policy data on Switzerland enters CAPRI both in the tariff aggregation module (in the global) part and also during market model calibration, and often overwrites tariff data from the above sources. The Switzerland-specific datasets in CAPRI are managed by the team at the Federal Office for Agriculture, and the data are based on national trade statistics: Swiss-Impex database and the databases of the TRIMAG tariff aggregation tool1). The relevant model code is collected under the subfolder gams\special_ch.

Tariffs and Tariff Rate Quotas

Data on trade policy instruments other than tariffs (Tariff Rate Quotas, export subsidies, entry price system and flexible levies) enter CAPRI directly in the market model calibration workstep. Note that the ad valorem equivalent tariff rates in MacMap already include an estimated equivalent tariff rate for TRQs. Nevertheless, the CAPRI market model separates TRQs from fixed tariff rates by using a sigmoid function-representation of the TRQ regime switch mechanism2).

The TRQ system of the EU is included in great detail, based on DG AGRI.information. Data on TRQ orders are aggregated to the geographical and commodity definitions of CAPRI in dat\arm\TRQ_orderds.gms. Specific GAMS routines convert some of the compound TRQs into ad valorem TRQs if necessary3)(gams\arm\convert_compound_trqs.gms).

Export subsidies

Data on (EU) export subsidies (e.g. maximum commitments) enter the system in the market model calibration workstep, under gams\arm\calc_feoga.gms. Current WTO negotiations aim at the full phase-out of export subsidies, and accordingly, the EU does not grant export subsidies to agricultural products currently. Nevertheless, the possibility to introduce export subsidies in policy scenarios is kept in CAPRI (e.g. Border Carbon Adjustment policies may take the form of export subsidies, for which the availability of the export subsidy mechanism is valuable).

Producer subsidies

Producer Subsidy Estimates (PSE) are formally part of the price transmission equations in the market model from the (equilibrium) market prices to the producer prices. However, a complete and up-to-date PSE dataset is not part of CAPRI at the moment, and therefore PSE support is not considered in the standard version of CAPRI (was only available in some specific model applications only).

Consumer subsidies

Consumer Subsidy Estimates (CSE) are formally part of the price transmission equations in the market model from the (equilibrium) market prices to the consumer prices. However, a complete and up-to-date CSE dataset is not part of CAPRI at the moment, and therefore CSE support is not considered in the standard version of CAPRI (was only available in some specific model applications only).

Public Intervention purchases and sales

Data on public intervention (stocks, buy-ins, releases, administrative prices etc.) enter the system in the market model calibration workstep, under gams\arm\calc_feoga.gms. Once one of the most impactful measure of the Common Agricultural Policy (CAP), public intervention has been reduced regarding its scope and is currently only available for EU farmers as an emergency measure (in crisis situations, e.g. under exceptionally high price fluctuations). Therefore, its use in CAPRI is also limited to scenario analysis.

FIXME Further update of this section is pending

1)
For more information on TRIMAG please refer to Himics, M., Listorti, G., Tonini, A., 2019. Simulated economic impacts in applied trade modelling: A comparison of tariff aggregation approaches. Economic Modelling. doi:10.1016/j.econmod.2019.08.007
2)
Tariff rates under TRQ vary between the lower in-quota and the higher out-of-quota rates, depending on the quota fill rates. For more details on the methodological approach please visit section Endogenous tariffs under Tariff Rate Quotas, flexible levies and the minimum import price regime for fruits and vegetables of the EU
3)
Compound TRQs are TRQs applying a compound tariff (combination of specific and ad valorem) on the in-quota or out-of-quota imports. For methodological reasons, the compound tariffs might need to be converted into their ad valorem equivalent rates.
policy_data.txt · Last modified: 2020/03/31 10:06 by matsz