Progress of Trade Policy Division

1
Progress of Trade Policy Division

• By
• Yasser Al- Isa
• Damascus,Syria
• NAPC,TPD
• 2005

2
Free Trade Agreements and Regional Arrangements
with special attention for those including Syria

• Agricultural policies in the developed economies,
  including the impact of such policies on the
  world agricultural trade

3
On Going Activities

• Special Isseu Syrian-EU Association Agreement
• Trade Policy Breif Is AA. worth for Syria
• Commodity and Market (CM) briefsCotton
• Review Paper The Concept of Agricultural
  Subsidies and its Significance in Developed
  CountriesCASSDC

4
Review Paper CASSDC

• To encourage fair trade in agriculture by
  removing trade distortions resulting from
  differential levels of input subsidies
• Subsidies may become perverse incentives and
  adversely affect both the economy and the
  environment while they often end up benefiting
  rich groups primarily

5
Definitions of Subsidy

• Subsidy was initially regarded a payment or a tax
  concession from the government
• Later extended to include policies that create
  transfers through the market mechanism.

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How is farm support measured

• By adding up two elements
• The difference between domestic and world prices
  for commodities multiplied by the amount produced
• Budgetary transfers (payments to farmers and
  budgetary revenue )

7
The OECD Indicators of Support

• Producer Support Estimate (PSE)
• Market Price Support (MPS)
• Producer Nominal Protection Coefficient (NPCp)
• Consumer Support Estimate (CSE)
• Consumer Nominal Protection Coefficient (NPCc)
• General Services Support Estimate (GSSE)

8
Classify countries

• Australia second lowest in the OECD, and in 2003
  the PSE remained unchanged at 4.
• Canada supplementary payments make up a third of
  the budgetary component of the PSE for 2003.
• European Union the long term reduction in the
  most trade distorting forms of support and in
  protection continues in the right direction .
• Japan little progress has been made to reform
  agricultural policies since the mid-80s .
• United States production and trade distorting
  forms of support are still significant,
  contributing to depressing world prices.

9
Overview of Syrian Agriculture Support

• Input subsidies were reduced
• Market Price Support has varied in relation to
  world prices
• Consumer subsidies are provided with low priced,
  standard quality
• Export subsidies are required for strategic
  commodities, whose prices are above world levels,
  and are exported
• Taxation (numerous taxes, fees and direct
  charges) although many of these have been reduced
  or eliminated in recent years

10
Thank You for Your Attention