EU Science Hub

Global Agricultural Domestic Support for Economic Modelling

May 11 2017

This workshop will gather policy and data experts in order to discuss an accurate representation of domestic support for economic modelling purpose, especially within the Global Trade Analysis Project (GTAP) database. It is expected that participants will share expertise on new features, sources and methodologies. The objective of the meeting is to learn from existing experience on global domestic support database together with GTAP database constraints. Outcomes of the meeting will be reported at the 2017 GTAP Advisory Board Meeting.

The GTAP database is the main data source used for global applied trade analysis, especially with computable general equilibrium (CGE) models. The last version publicly available (version 9) contains complete bilateral trade information, transport and protection linkages for 140 regions and 57 sectors (3 reference years: 2004, 2007 and 2011). The representation of agricultural domestic support payments originate from the OECD Producer Support Estimate (PSE). The method used to incorporate PSE elements into the GTAP database has been standardized so that the same approach has been used in all the OECD countries/regions plus some non OECD countries (EU is classified as one region).

The engagement of JRC.D4 in the GTAP database contributing team to the EU domestic support has opened up the opportunity to further scrutinize domestic support payments by EU Member State and key trade partners. Research at JRC.D4 compared the version 9 approach with an alternative one that makes the representation of EU expenditures more transparent and inclusive. It clearly highlights that this later includes more payments than the traditional methodology. Indeed an accurate classification shall embrace domestic support going beyond the PSE, being defined as General Services Support Estimate (GSSE) or Consumer Support Estimate (CSE) by the OECD. Accordingly any change in the accounting convention for the EU domestic support can only have a comparative significance if other countries also follow. It remains to be seen if the next version of the GTAP database (version 10) could include a new representation of agricultural domestic support (reference year: 2014).

Questions to be addressed:

  • How can agricultural domestic support coverage be extended from the countries covered by OECD PSE calculations to the world. Is the OECD extending its country coverage?
  • What is the status with regard to other worldwide database (e.g. Ag-Incentives consortium, DAI)? Could this be used in the GTAP database?
  • What data international organizations have? Is this already apart of the work under going in the DAI database? If so how can the DAI database be linked to the domestic support in the GTAP database in a systematic way?
  • Is a right strategy to consider the inclusion of GSSE and CSE together with PSE tables to be represented in the GTAP database version 10; or to emphasis the increase of country coverage documenting their domestic support and export regimes; or both?

Confirmed speakers:

  • Angel Aguiar, Purdue University  
  • Jean BaliĆ©, FAO
  • Pierre Boulanger, JRC
  • Emanuele Ferrari, JRC
  • Giampiero Genovese, JRC
  • Joanna Ilicic-Komorowska, OECD
  • Hans Jensen, JRC
  • Will Martin, IFPRI
  • Kirsten Urban, Hohenheim University
  • Martin Von Lampe, OECD

Opening remarks by Tassos Haniotis, DG AGRI

Key datasets: