Climate Change Mitigation How. domestic support policies?
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1 Climate Change Mitigation How might it affect market access and domestic support policies? Jane Earley Earley & White Consulting Group, LLC ICTSD-IPC side event on Climate Change, Agriculture and Trade: Promoting Policy Coherence, 6 April 2009
2 Current situation Trade liberalization in agriculture Tariffs in South are high Domestic support levels in Annex I countries also very high (some notable exceptions) Export subsidies still problematic Doha Development Round remains to be completed, despite paradigm-shifts Climate change mitigation will inevitably it add to tensions has already done so!
3 Symphony of Trade Restraints present and potential Export prohibitions and differential export taxes for crops, fertilizer Biofuels subsidies healthy and growing Tariff walls growing around new forms of production Stimulus packages limit procurement to domestic Border taxes may accompany carbon taxes, or possible mis-allocation of emissions permits Proliferating technical regulations and standards New ideas (tradable performance standards reflecting product carbon intensity coupled with permit trades), old problems (lack of MFN and national treatment)
4 Some very troubling questions General questions: Will present tariff and support structures work to aid adaptation to climate change or to complicate it? Is the political price for climate change mitigation too high for the multilateral trading system? Do present agricultural subsidies work to increase GHG emissions or to mitigate them, and can WTO negotiations address this? Can the trading system serve as a venue for resolution of some of these issues?
5 Specific Questions Specific questions Would green box rules preclude accounting for carbon offsets there? Will agricultural offsets replace other payments as support for agriculture? Will fertilizer production emissions caps inspire new subsidies? Will this promote lower emissions or just expensive fertilizer, and increased hunger?
6
7 Tariff and Support structures 10-40% higher trade flows of mid- to high-latitude products (cereals and livestock) to low-latitude countries by 2080 Not just how to boost production also how to reduce barriers to trade Tariff escalation does it work to reduce or increase leakage? Can consensus be achieved on tariff elimination in sectors clearly mitigation-enhancing? (EGS, biofuels) Trade must be seen as a tool to assist in mitigation and adaptation yet the focus has been national and local. How can this dynamic be modified?
8 Monthly averages of fertilizer prices from 2000 to World fertilizer prices -- especially diammonium phosphate -- have skyrocketed during FOB = Free on board. Average price, with supplier paying freight and insurance, to destination port. DAP = diammonium phosphate. MOP = muriate of potash. Credit: Derived from Green Markets and FMB Weekly. Modified by mongabay.com
9 Subsidies
10 1144 supporter 3549 farm enter zipcode website: interest 13 ema fa Farm Subsidies: Top 20 Individual Beneficiaries Your Farm Subsidy Dollars At Work Site Slow? Here's Why What's new in this database? Full Disclosure: Who really benefits from federal farm subsidies Additional Analyses Commodity Crop Payment Distribution Farm Businesses by Number of Pass-Through Beneficiaries Beneficiaries Receiving Pass- Through Subsidies From Multiple Farm Businesses Crop Subsidies by Congressional District Farm subsidies to the Districts Represented by the House Agriculture Committee Concentration of Crop Subsidies United States Stay Informed Get our monthly enewsletter, farm policy updates, & the latest farm news. $34.8 billion in commodity program payments for program years Other Information News Release Related News Coverage Data Used in This Website (USDA backgrounders) EWG's Farm Subsidy Database
Climate Change Mitigation How might it affect market access and. Jane Earley Earley & White Consulting Group, LLC
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