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Extra info for Agricultural Policy and Trade Reform, Potential Effects at Global, National and Household Levels

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The import protection measures include ad valorem tariffs, specific tariffs and tariff rate quota regimes. Specific tariffs are converted into ad valorem AGRICULTURAL POLICY AND TRADE REFORM: POTENTIAL EFFECTS AT GLOBAL, NATIONAL AND HOUSEHOLD LEVELS – ISBN-92-64-02573-1 © OECD 2006 Chapter 2. Global Market, National and Sectoral Impacts – 35 equivalents using a procedure that begins by assigning each country to a reference group of similar countries. The import unit value used in converting a country’s specific tariffs into their ad valorem equivalents is the median unit value of world-wide exports originating from its reference group.

Simulated impacts on land rental rates Brazil Malawi Thailand South Africa Australia/New Zealand China Russia Rest SS Africa Indonesia India Turkey Mexico Japan United States Canada European Union 15 -60 -50 -40 -30 -20 -10 0 10 20 Per cent change Source: GTAPEM simulation results. 5 indicate the percent increase or decrease in the annual flow of land rents earned by a landowner. The model does not calculate the implications of changes in this rental flow for the price of land as an asset. The capitalization of the economic benefits of farm support into asset prices — land especially, constitutes an enduring topic of applied economic analysis [see Gardner (1998) for an extended discussion and additional references].

Second, the new version contains tariffs based on averages of applied rather than bound tariff rates. As already discussed, in general applied tariffs are lower than the corresponding bound rates, and substantially so in many important cases. Additionally, switching to applied rates allows incorporation of the still lower preferential tariff rates applying to some important trade flows between selected developed and developing countries. Taken altogether the apparent rates of trade protection in the new database are much lower on average than those in the old database.

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