Categories: All - security - trade - disasters - growth

by Angie Yepez 8 years ago

372

Sample Mind Map

The text discusses various economic policies and their implications, particularly focusing on export promotion and import substitution strategies. It highlights the comparative advantages of countries that adopt export promotion policies and the transparency of costs associated with subsidies in import substitution.

Sample Mind Map

Export promotion policies vs Import Substitution Policies

Import Substitution Policies

Cost of subsidies are more transparent than tarifs

Export Promotion Policies

Countries with comparative advantages are better

2006 World Trade Organization Report (Subsidies, Trade and the WTO)

Andrea Romero and Angie Yépez

Subsidies and the WTO

The Doha Development Agenda
General Agreement on Trade in Services
Negotiation mandate
Disciplines

Use of diseminatory subsidies

Agreement on Agriculture
Special treatment

Higher de minimis thresholds

Lesser (liberalization)

Different rules (reduction commitment)
Uruguay Roun Agreement
Anti- subsidy remedies

Multilateral

Dispute settlement

Unilateral

Producer

Consumer

Differential treatment
Concept of specificity
Definition of subsidies
Tokyo Round Agreement
Non- agricultural goods
Countervailing duties
Evolution of rules
Agricultural products
Exports Subsidies
Consultation
Subsidies to manufactured exports in developing countries

Subsidies

Definition
also

Affectation of prices

Provision of goods and services

Budgetary outlays

Subtema

Distinguish the recipients

subsidies

general

specific

Unrequited transfer

WTO agreement

Specificity

Forms of subsidy

Economic Analysis
Merits

Aware of the costs

Desirability
Why
International Perspective
WTO rules

Non- disruptive

Competitive threat

Severe effects

Nullify national welfare

Reasons
Who

Correct market failure

Theory

Policy objectives

Incidence (overview)
Hard to find comprehensive information

Addtional Sources

Notifications

WTO

Information

Requirements

Reports

National

International Data

Cross country comparability

Limited number of sectors

Variation in sectorial distribution
Countries

Developing Subsidies

Developed Subsidies

Incidence

In
Industry

Subsidies & GDP

Recipients

Fishing

Protection

Income support

Development

Substainability

Stable subsidies

Coal

restructing

development, energy security

Minning, steel, forestry

Specific

Automotive indsutry

Horizontal (fiscal incentives, policies, EPZs)

The Caribbean

Latinamerica

Audiovisual

Cultural objectives (policy instruments)

Promotion domestic content

Tourism

Infrastructure

Marketing Support SME

Financial Service

Tax Incentives

Equity injections

Objectives

Restructure

Keep banks afloat

Telecommunications

Universal Service Funds

Affordability

Availability

Universal Service

Transport

Security

Environmental

Railway

Universal Access

Measures

Developing

Tax incentives

Developed

Grants

Non- notifiable

Food aid

State- trading enterprises (market power)

Privilage

Price discrimination

Export credit, guarantees

Notifiable

AMS

Export subsidies

Distribution by commodities

Domestic support

UE, US, JAPAN

Reduction of commitments

Trade distorting

Minimis levels

Distortion

Exporters

Importers

Welfare loss

Providers

Bibliography

WTO. (2006). World Trade Report 2006 Exploring the links between subsidies, trade and the WTO. Retrieved from: https://www.wto.org/english/res_e/booksp_e/anrep_e/world_trade_report06_e.pdf
Learn Liberty. (28 ene 2015). Should We Subsidize Scientific Research? Retrieved from: https://www.youtube.com/watch?v=ozJHw9NrK4E
Thornton, R. (12 oct 2015). What are Subsidies? Retrieved from: https://www.youtube.com/watch?v=EhvimG6kSa0

Why Governments Subsidize

Others
Cultural heritage

Trade liberalization erodes national identity (subsidies helf not to)

Non- trade concerns

Non- commodities

Increasing commodities production

National security

Energy

Food

Environmental Protection
Useful for

Correct asymmentries

Facilitate adjustments of new environmental regulations

also with regulations, laws, tariffs, taxes
Distribution
To change the distribution of income in societies

on agriculture

for equality

Strategic Trade Policy
Secure national advantage in economies of scale

R&D intensive industries

Hurtful for active partners

Risk of dissipate funds

Production of Knowledge goods
State promotes Development and Research

Intelectual Property Systems

The government will need to invest in more resources

Benefical on a social perspective

Industrial Development
State intervention

Could not be as efficient as it should

Could lead to market failure

Control that the diserable investments are made

To develope industries

Services

Agriculture

The Economy had a lower growth in 2005

Terrorist Attacks
Effects

Tightened security

Some industries may be affected

The costs may rise

Localized and temporary

The impact of natural disasters

International arena

Foreign goods or services

Imports rise

Transportation bottlenecks

Major utilities may be disrupt

Important inputs may be short

Lack of production

Exports fall

National level

Tourism is not affected

Sri Lanka Tsunami in December 2004

Macroecnomic activity weakens

Depends on how

How integrated it is in the global economy

How tradable is the devasted sector

Could be

Considerable (in somes industries)

Notable

Consequences
Less than the preceding years
Reduced oil consumption of OCDE countries

Optimization of the energy

Low inflation growth
US dollar appreciation

improve its deficit

Japan stagnated
Decreased od US & Euro
due to
Investments in liquid assets

but in US bonds

Oil exporters invest more in goods than before
Time investment
Increased demand of
Increased wage
Slacking of product capacity
High oil prices
Trade in Textiles and Clothing
Royalties and Fee Payments

Are among affiliated companies

causing

Singapour, China, and the Republic of Korea

Increased loyalties and fee payments

High level of foreign Investment

East Asian economies got strong

Countries remain dominant in receipts and payments

faster than commercial services

The expiry of the agreement

Causing

Growing importance of developing countries

Ex: China

Lack of diversfications

The importance of Developed countries' market decrease.

Production declines

Replacement of domestic production by suppliers from lower income countries

UE largest economies below 2%
Lower percentage

UE destinations