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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:
- 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.
- 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).