ERS/Penn State WTO Model: Country and Commodity Coverage
Commodities
Countries
Rice
Wheat
Corn
Other coarse grains
United States
European Union
Japan
China
Canada
Mexico
Brazil
Argentina
Australia
New Zealand
South Korea
Rest of World
Soybeans
Soymeal
Soyoil
Sunflowerseed
Sunflowerseed meal
Sunflowerseed oil
Rapeseed
Rapeseed meal
Rapeseed oil
Cotton seed
Cottonseed meal
Cottonseed oil
Peanuts
Peanuts meal
Peanuts oil
Other oilseeds
Other oilseeds meals
Other oilseed oils
Tropical oils
Cotton
Sugar
Beef and Veal
Pork
Poultry meat
Milk (unprocessed)
Milk (processed, fluid milk)
Butter
Cheese
Non-fat dry milk
Whole dry milk
Other dairy products
ERS/Penn State WTO Model: U.S. and EU policy specifications
General
United States policies
An overall limit on area—“BASE AREA BOUND” will limit the total
area of grains and oilseeds, by cutting off payments if the base area
bound is reached.
General
Issues
World trade
prices:
LOAN RATES:
Grains
ric = 99 $/mt
whe = 114 $/mt
crn = 87 $/mt
ocg = 79 $/mt
ric = 111 $/mt
whe = 95 $/mt
crn = 74 $/mt
ocg = 67 $/mt
Oilseeds
and
Oilseed
Products
World trade
prices:
sbs = 177 $/mt
ots = 200 $/mt
LOAN RATES:
sbs = 193 $/mt
ots = 205 $/mt
Sugar
INTERVENTION PRICES (government purchases and then
export subsidies) will occur at the following prices:
ric, crn, and ocg = 110 ecu/mt * 0.90 $/ecu
wheat = 130 ecu/mt * 0.90 $/ecu
VARIABLE LEVY for ric, whe, crn, and ocg holds the import price at
not less than 1.55 * 110 ecu/mt*0.90 $/ecu
COMPENSATORY PAYMENTS:
whe, crn, and ocg = 63 ecu/mt* 0.90 $/ecu
ric = 53.3 ecu/mt * 0.90 $/ecu
SET-ASIDES take area out of production.
BASE AREA BOUND (see above) can cut off compensatory payments.
COMPENSATORY PAYMENTS:
sbs and ots = 63 ecu/mt* 0.90 $/ecu
SET-ASIDES always exist; they can be changed, but never reduced
below 10% for oilseeds.
“BLAIR HOUSE PENALTY” will reduce compensatory payments if
oilseed area is too high.
BASE AREA BOUND (see above) can cut off compensatory payments.
Beef INTERVENTION PRICE (and export subsidies)
Meats
Dairy
European Union policies
World trade
prices:
MARKETING ORDERS raise
U.S. production by 0.5 percent
butter = 1600 $/mt
che = 1620 $/mt
ndm = 1486 $/mt
wdm = 1783 $/mt
DEIP EXPORT SUBSIDIES:
che = 700 $/mt
ndm = 70 $/mt
wdm = 84 $/mt
World trade price:
sug = 178 $/mt
U.S. TRQ makes the U.S.
domestic price = 437 $/mt
INTERVENTION PRICES:
butter = 3285 ecu/mt * 0.90 $/ecu
ndm = 2060 ecu/mt * 0.90 $/ecu
VARIABLE LEVY for ndm holds the import price
at not less than 1.12*Intervention price
EXPORT SUBSIDIES for butter, ndm, wdm and cheese
A PRODUCTION QUOTA limits dairy; it is assumed that production
would be 3.5 percent higher if not for the quota.
CONSUMER SUBSIDY, butter = 5 percent of price
INTERVENTION PRICE, sugar = 523.7 ecu/mt * 0.90 $/ecu
A PRODUCTION QUOTA limits sugar; it is assumed that
production would be 7 percent higher if not for the quota.
Commodities in WTO Model Account
for 70% of EU AMS
grains
16%
rice
1%
other (not in
model)
30%
dairy
12%
sugar
12%
beef
29%
Source: ERS calculation