Agricultural Policies in Emerging Economies 2009: by OECD Organisation for Economic Co-operation and Development

By OECD Organisation for Economic Co-operation and Development

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3. An average of per cent changes in border price for individual OECD countries (EU25 as one), weighted by the value of countries’ MPS in OECD total MPS in the previous year. Source: OECD, PSE/CSE Database, 2008. 1787/531735700487 Producer support is provided through measures which support commodity output or input use In addition to the level of support, it is also instructive to analyse the composition of support, showing the different ways in which support is provided. 6). In the emerging economies this almost exclusively takes the form of transfers associated with MPS policies, primarily import protection, with only Brazil, Russia and Ukraine providing payments based on output.

E. tariff free entry (MFN rate of 10%) and waiver of the merchant marine levy (25% of freight cost). However, since March 2007 Argentina has imposed quantitative restrictions on the export of wheat, requiring Brazilian importers to source wheat from the United States and pay higher import charges. The government has taken a number of measures to stem the upward pressure on food prices. At the general macroeconomic level, it has taken steps to reduce domestic consumption pressure by: a) increasing interest rates (through raising the inter-bank lending rate); and b) establishing the Brazilian Sovereign Fund so that a greater share of the increase in revenue from GDP growth is channelled into savings rather than consumption.

Composition of producer support, 1995-97 and 2005-07 u Lect r 2005-07 2005-07 1995-97 2005-07 1995-97 2005-07 -20 -15 -10 -5 0 5 10 15 20 25 30 Source: OECD, PSE/CSE Database, 2008. 1787/528680043222 payments based on input use (interest concessions, fertiliser subsidies, etc), with comparatively less use made of other payments, such as those based on land, animals or income. While support based on commodity output decreased in importance for the OECD as a whole between 1995-97 and 2005-07, it increased in importance for four of the six emerging economies.

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