Agricultural Policies in Non-OECD Countries

2072-5248 (online)
2072-5256 (print)
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Agricultural trade reform is a global issue. Countries are concerned both about reforms they may be required to implement and about the extent of liberalisation undertaken elsewhere. For OECD countries, the impacts of multilateral reform will depend increasingly on the provisions applied in emerging and transition economies (ETEs). Similarly, ETEs have a strong interest in the policies adopted by those OECD countries that dominate world agricultural trade. This annual publication examines the country-specific effects -- and the distributional consequences in Russia and in transition economies in line for EU accession as well as in other major agricultural economies-- Brazil, China, India, and South Africa.

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Agricultural Policies in Non-OECD Countries 2007

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Agricultural Policies in Non-OECD Countries 2007

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29 May 2007
9789264031227 (PDF) ;9789264031210(print)

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The agricultural sector and related support policies of many OECD trading partners are changing rapidly. This report monitors agricultural policy developments in Brazil, Bulgaria, China, India, Romania, Russia, South Africa and Ukraine following the same approach applied to OECD countries, providing a common benchmark for evaluating reforms and for facilitating international dialogue.  A comprehensive statistical annex containing a wide range of contextual information for these countries is also included.  This book includes StatLinks, URLs under tables and graphs linking to Excel® spreadsheet files containing the underlying data.

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  • List of Acronyms and Abbreviations
  • Overview
    This Overview is intended to first provide a general appreciation of the relative importance of the agriculture sector in the eight non-OECD economies under review. These comprise three large developing countries (Brazil, India and South Africa), four formerly planned economies (Bulgaria, Romania, Russia and Ukraine) and China, which combines some features of both groups. Next, a discussion of the main driving forces for change sets the policy context. The political response to these forces in terms of policy reforms and new government initiatives is then evaluated, based on the OECD standard measures of support (PSEs/TSEs, see Annex A for more details). Finally, some general policy observations and recommendations are offered. It is these last two elements that are generally of most interest to decision-makers – an assessment of different approaches to addressing what are often similar problems and economic circumstances. The OECD experience with policy reforms in OECD countries, and a growing number of non-members, suggests that the effectiveness, efficiency and spill over effects of different agricultural policy measures vary a great deal.
  • Brazil
    Following several years of prodigious growth, the agricultural sector was afflicted in 2005 by a price-cost squeeze that resulted from a combination of falling international prices for important export commodities, rising input costs (notably for fuel) and an appreciating exchange rate. Policy initiatives in 2005/06 were primarily designed to mitigate this development.
  • Bulgaria
    Over the review period, Bulgaria has introduced legislation establishing EU Common Market Organisations such as domestic market intervention, which was only used for wheat, and export subsidies. A number of budgetary measures, similar to those applied in the EU were also introduced. As a result, support to producers has increased, but it remained well below OECD and EU levels in 2003-05.
  • China
    A rural-urban divide with large and growing income disparity further accentuated by differences in access to education, health care, pensions and other social benefits, has been a striking feature of China’s impressive economic growth.
  • India
    This chapter is based on an OECD review of agricultural policies in India undertaken in 2005. The Government of India did not participate in this review and it was therefore not possible for the draft report to undergo the in-country or OECD review process. Consequently, estimates of agricultural support for India are not available.
  • Romania
    The level of support increased dramatically over the review period, almost reaching the OECD average, and approaching the EU level in 2005. The increase in support is due to higher protection from world markets, which reduced significantly the market orientation of Romanian agriculture.
  • Russia
    The agricultural sector benefited from the overall economic growth, which strengthened food demand and prices. With increased tax revenues at government’s disposal, more direct assistance was also provided. However, these impacts were counterbalanced by a rise in fuel prices and by an appreciation of the ruble.
  • South Africa
    Changes in South African agriculture in the past decade have been shaped by substantial reforms implemented from the mid 1990s: deregulation of the marketing of agricultural products, abolishing certain tax concessions favouring the sector and reductions in budgetary expenditure on the sector. The main development in trade policies was the replacement of direct controls over imports by tariffs, which were set below the bound rates of the URAA, and elimination of state controls over exports and of export subsidies. In 2005 and 2006, most policy developments were linked with the introduction of programmes providing support to new farmers emerging from land reforms.
  • Ukraine

    Ukraine’s agriculture has a potential to become an important contributor to global supplies of selected commodities, in particular grains and oilseeds. However, it needs a healthy macroeconomic background as well as consistent and predictable policies stimulating efficiency-driven agricultural output growth, allowing for efficiency-based land market transactions, creating more off-farm employment opportunities and improving rural public services.

  • Annex A - Measuring Agricultural Support
  • Annex B - Statistical Annex
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