Indicadores calculo Ayuda Interna –NPR y NPA-

David Laborde

International Food Policy Research Institute

Buenos Aires, Septiembre 2017

Tasa Nominal de Protección (NRP)

Based on initial work by Krueger and al. for developing countries

Focus on price differences between domestic farm gate prices and world prices (called reference prices after adjustment)

Expressed as a percentage of undistorted prices:

Compare like and like: adjustment for quality, processing and transportation costs

Price Received by Farmers

Policy impact on prices

Price without policies

X100 = NRP in %

Tasa Nominal de Protección (NRP)

Highly impacted by border measures: custom duties, export taxes and subsidies, quantitative restrictions, Non Tariff Barriers, and price management policies

Aggregated measure of all instruments: pros and cons

No measurement of bilateral preferences

Concept Similar in nature of OECD Market Price Differential, Nominal Protection Coefficient and Market Price Support

Could be adjusted for feed costs, But not yet a full ERP (effective rate of protection)

Tasa Nominal de Asistencia (NRA)

Beyond price support (NRA_bms): Need to include subsidies

Linked to the production of a particular goods(NRA_dms)NRA_dms+NRA_bms=NRA_o

Linked to input uses (NRA_i)

Historical payment and General services: lessdistortive (close to the Green box): NRA_decpay

NRA=NRA_o+NRA_i+NRA_dec , Similar to theOECD PSE concept

From commodity specific to the whole agriculture

Extension of the concept to look at relative NRA or RRA (is industry more protected thanagriculture)

Extensive covered in Anderson (2007)

Ag-Incentives

Consortium

IDB

IFPRI

OECD

World Bank

MAFAP/FAO

CGIAR and PIM

The Ag-Incentives Consortium• A Collective Effort: Towards a continuous effort for

global monitoring of agricultural distortions

◦ Started in 2011

◦ Towards a continuous effort for global monitoring of agricultural distortions

◦ Facilitated by IFPRI

◦ Follow-up on Anderson and World Bank initiative -> provide institutional framework for a long standing approach

◦ Inspired by GTAP consortium

Country and Product coverage

64 products

41 countries / regions (EU-28=1)

2005-2015/2016

Contents and Coverage

10,210,8

5,7

0,8

5,7

7,7

5,1

8,3

10,0

9,1

16,5

41

4850 50

53 54 54 53

49

46

24

0

10

20

30

40

50

60

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

16,0

18,0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

NR

P, %

Summary

NRP, Average Number of Regions

Fuente: Ag- Incentives 2017. http://ag-incentives.org/

Crossing paths

-10

-5

0

5

10

15

20

25

30

35

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

No

min

al R

ate

of

Pro

tect

ion

, %

Developed Countries Developing Countries

---------DAI---------- -------------------Ag-Incentives Consortium------------------

NRP by product

-80,0

-60,0

-40,0

-20,0

0,0

20,0

40,0

60,0

80,0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Millet

Poultry meat

Rice

Fuente: Ag- Incentives 2017. http://ag-incentives.org/

NRP by region

-25

-20

-15

-10

-5

0

5

10

15

20

25

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

No

min

al R

ate

of

Pro

tect

ion

, %

Europe Africa

Asia Northern America

Latin America and the Caribbean Oceania

Las distorsiones de precios siguen importando:Productos más distorsionados ( USD 2014) – Total 390,000 millones

Fuente: Ag- Incentives 2017. http://ag-incentives.org/

NRP by Country

-20,0

-15,0

-10,0

-5,0

0,0

5,0

10,0

15,0

20,0

25,0

2011 2014

Belize

Sri Lanka

Ukraine

United States ofAmerica

Viet Nam

Fuente: Ag- Incentives 2017. http://ag-incentives.org/

Distribution of distortions (positive and negative)

Bovine Meat63%

Poultry meat24%

Potatoes7%

Plants and flowers

3%

Tomatoes2% Eggs

1%

European Union (2012)

Bovine Meat Poultry meat Potatoes Plants and flowers

Tomatoes Eggs Sugar Sheep meat

Fuente: Ag- Incentives 2017. http://ag-incentives.org/

Distortions value (Billion USD)

- 20- 15- 10

- 5

5 10 15 20 25 30 35

2007 2009 2011 2007 2009 2011 2007 2009 2011 2007 2009 2011

Argentina Brazil Japan Pakistan

Bn

USD

Other

Oilseeds and Products

Grains

Fruits and Vegetables

Animal Products

Fuente: Ag- Incentives 2017. http://ag-incentives.org/

Beyond nomenclature and definition harmonization, keep in mind about differences“Reference Price” in the MPD or NRP computations is not the WTO reference price for AMS computation: one is market based, the other is a historical/legal concept

%PSE are expressed as a % of gross farm income (inc. distortions) while %NRA, %NRP are based on undistorted values:e.g. A 75% PSE is equivalent to a 300% NRA

◦ Last but not least, these measures are accounting instruments, to assess the impacts you need economic models that will use these metrics!

Thank you!

Come an visitwww.ag-incentives.org

http://www.ag-incentives.org/