AGRICULTURE IN THE URUGUAY ROUND

Transcription

1 AGRICULTURE IN THE URUGUAY ROUND

2 Also by K. A. Ingersent AGRICULTURE AND ECONOMIC DEVELOPMENT (with Subrata Ghatak) ECONOMIC ANALYSIS OF AGRICULTURE (with B. E. Hill) Also by A. J. Rayner CURRENT ISSUES IN AGRICULTURAL ECONOMICS (with David Colman) RESOURCE STRUCTURE OF AGRICULTURE (with K. Cowling and D. Metcalf) Also by R. C. Hine GLOBAL PROTECTIONISM (editor) THE POLITICAL ECONOMY OF EUROPEAN TRADE

3 Agriculture in the Uruguay Round Edited by K. A. Ingersent Senior Research Fellow Centre for Research in Economic Development and lnternational Trade University ofnottingham A. J. Rayner Professor ofagricultural Economics University ofnottingham and R. C. Hine Senior Lecturer in Economics University ofnottingham

4 First published in Great Britain 1994 by MACMILLAN PRESS LTD Houndmills, Basingstoke, Hampshire RG21 6XS and London Companies and representatives throughout the world A catalogue record for this book is available [nun the British Library. ISBN DOI / ISBN (ebook) First published in the United States of America 1994 by ST. MARTIN'S PRESS, INC., Scholarly and Reference Division, 175 Fifth Avenue, New York, N.Y ISBN Library of Congress Cataloging-in-Publication Data Agriculture in the Uruguay Round / edited by K. A. Ingersent, A. 1. Rayner, and R. C. Hine. p. em. Includes bibliographical references and index. ISBN Tariff on farm produce. 2. Agriculture and state. 3. General Agreement on Tariffs and Trade (Organization). I. Rayner A. J. II. Hine, R. C. HF2651.F27 A '.41-<1c CIP K. A. Ingersent, A. J. Rayner and R. C. Hine 1994 Softcover reprint of the hardcover 18t edition 1994 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London WIP 9HE Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages

5 Contents List oftables List offigures Preface Notes on the Contributors Abbreviations vii ix x xi Xli Introduction K. A. Ingersent, A. J. Rayner and R. C. Hine 2 The Uruguay Round: Agenda, Expectations and Outcomes David Greenaway 3 The US Perspective Jimmye S. Hillman 4 The EC Perspective K. A. Ingersent, A. J. Rayner and R. C. Hine 5 The Cairns Group Perspective Rod Tyers 6 The Canadian Perspective T. K. Warley 7 The Japanese Perspective Kenzo Hemmi 8 The LDC Perspective L. Alan Winters 9 The Food Industry Perspective Simon Harris v

6 vi Contents 10 Perspectives on EC Agricultural Policy Reform Secondo Tarditi 203 II Agricultural Policy Reform after the Uruguay Round 223 David Harvey 12 Agriculture in the Uruguay Round: an Assessment K. A. Ingersent, A. J. Rayner and R. C. Hine 260 Notes and References Bibliography Author Index Subject Index

7 List of Tables 1.1 Net percentage PSEs, Chronology of the Uruguay Round The GAIT negotiating rounds Post Tokyo Round tariff reduction averages in principal industrialised countries (per cent) Incidence of non-tariff measures in principal industrialised countries Uruguay Round negotiating groups Uruguay Round trade-offs Total transfers associated with agricultural policies (in billion US dollars) Summary of key elements of US agricultural proposal to the GAIT, IS October The Cairns Group, The Cairns Group in world production and trade: a comparison with the 'B ig Three' The Cairns Group in world agricultural commodity exports The Cairns Group as destination for ' Big Three' exports Average food trade distortions in Cairns Group and other industrial countries Effects of industrial country food trade distortions on Cairns Group food exports Effects of industrial country food trade distortions on welfare in Cairns Group countries Effects of EC unilateral reform, combined with EFfA membership, on international prices and on EC-EFTA production and net trade in Effects of EC-12 unilateral reform on production and net trade in The effects of unilateral EC Reform and EFTA membership on economic welfare in Canada's agrifood trade, Producer subsidy equivalents, Canada, average, and 1987 to 1990, percentages 116 vii

8 viii List of Tables 6.3 Aggregate measure of support, Canadian agriculture, , C$ millions Aggregate net farm cash income, Canada, , $C million and percentages Estimated farm size needed to reduce costs of production of rice Aggregate levels of consumer subsidy equivalent by country (in % of consumer value) Operation of EC export refund mechanism Welfare effects of policy alternatives Progress ofmacsharry reform proposals, EC Base data and primary illustrative calculations JIlustrative policy measures 241

9 List of Figures 6.1 A synoptic view of Canada's agricultural support programmes and domestically-oriented negotiating objectives Economic development and agricultural employment share in the EC Farm assets and incomes per agricultural working unit in the EC Distribution offarms by family farm income per person 208 loa Relation between labour income and farm size Structural impact of alternative prices Welfare effects ofalternative policy measures Impact ofnon-tradable quotas at firm and industry levels Stylized representation ofdifferent support instruments (EC, cereals) Percentage adjustment ofworld commodity prices towards free trade levels under PEGs at 100% and 80% of 1986 quantities 252 IX

10 Preface The original inspiration for this book came from a one-day conference on 'Agriculture in the Uruguay Round' held in April 1990 at the University of Nottingham, under the auspices of the Centre for Research in Economic Development and International Trade (CREDIT). Three chapters of this book are based upon papers presented at that conference. A further six are by authors who were subsequently invited to make contributions. Publication has been held up longer than we would have wished due mainly to the unexpectedly protracted course of the Uruguay Round itself. It has been a pleasure working with our contributors and we are extremely grateful to all of them, not only for their hard work but also for their co-operation and patience with us in bringing this enterprise to a successful conclusion. We are also pleased to acknowledge our debt to Sharon Tipper who transformed a collection of heterogeneous manuscripts, produced in a variety of word-processing styles, into a harmonious whole fit to be sent to the publisher. K. A.. INGERSENT A. J. RAYNER R.C. HINE x

11 Notes on the Contributors David Greenaway is Professor of Economics and Director of the Centre for Research in Economic Development and International Trade (CREDIT), University of Nottingham. Simon Harris is Group Economist, British Sugar pic. David Harvey is Professor of Agricultural Economics, University of Newcastle upon Tyne. Kenzo Hemmi is Professor at Toyo Eiwa Women's University, Japan. Jimmye S. Hillman is Emeritus Professor of Agricultural Economics, University of Arizona, USA. R. C. Hine is Senior Lecturer in Economics and Research Fellow in CREDIT, University of Nottingham. K. A. Ingersent is a Research Fellow in CREDIT, University of Nottingham. A. J. Rayner is Professor of Agricultural Economics and Assistant Director of CREDIT, University of Nottingham. Secondo Tarditi is Professor of Agricultural Economics and Policy, University of Siena, Italy. Rod Tyers is Senior Lecturer in Economics, Australian National University, Canberra. T. K. Warley is Professor of Agricultural Economics, University of Guelph, Ontario, Canada. L. Alan Winters is Professor of Economics, University of Birmingham. XI

12 Abbreviations AAA AD AMS BST CAP CDE CG CGE CIS COPA CUSTA CVDs EEP EFTA ERA FAO FEOGA FOGS GSP IBRD ICA IMF ITO LFAs LUFPIG MFA MFN MIPs MPP MTN NICs NRP NTB NTMs PAG PDE Agricultural Adjustment Act Anti Dumping Aggregate Measure of Support Bovine Somatatropin Common Agricultural Policy Consumption Distortion Equivalent Cairns Group Computable General Equilibrium Commonwealth of Independent States Confederation of European Farmers' Unions Canada-US Trade Agreement Countervailing Duties Export Enhancement Programme European Free Trade Association Effective Rate of Assistance Food and Agriculture Organisation (of the United Nations) European Agricultural Guidance and Guarantee Fund Functioning of the GATT System Generalised System of Preferences International Bank for Reconstruction and Development International Commodity Agreement International Monetary Fund International Trade Organization Less Favoured Areas Land Use and Food Policy Inter Group Multi Fibre Agreement Most Favoured Nation Minimum Import Prices Market Promotion Program Multilateral Trade Negotiations Newly Industrialising Countries Nominal Rate of Protection Non-Tariff Barrier Non-Tariff Measures Price Adjus tment Gap Price Distortion Equivalent xii

13 Abbreviations xiii PEG PERTs PESTs PSEs QRs SMUs SNOs TD TDE TEs TPRM TRIMs TRIPs USDA VERs YES VIL VRAs WIPO Producer's Entitlement Guarantee Political Economic Resource Transfers Political Economic Seeking Transfers Producer Subsidy Equivalents Quantitative Restraints Support Measurement Units So-called Non-economic Objectives Trade Distortion Trade Distortion Equivalent Tariff Equivalents Trade Policy Review Mechanism Trade Related Investment Measures Trade Related Intellectual Property Rights United States Department of Agriculture Voluntary Export Restraints Variable Export Subsidy Variable Import Levy Voluntary Restraint Agreements World Intellectual Property Organisation