GuideTo Foreign Crop Subsidies and Tariffs
This study attempts to summarize information on farm policies being usedfor seven major crops–corn, cotton, rice, sorghum, soybeans, sugar, andwheat–by a group of 21 countries representing both developing anddeveloped nations. Overall, the study concludes that agriculture has a specialstatus in both developed and developing countries with a wide variety ofsubsidy and protection instruments in place.
Specifically, we find that:
- All countries, both industrialized and developing, support their agriculture sectors, but use vastly divergent policy tools and combinations of tools. Most use guaranteed minimum prices and import tariffs to protect domestic producers.
- Industrialized country governments are moving from price supports toward decoupled direct income payments.
- Developing countries supplement their price support programs with input subsidies, which are excluded from calculations of the Aggregate Measure of Support (AMS), but are nonetheless trade distorting.
- Developing countries' tariff protection is substantially higher than that of industrialized countries.
- The use of sanitary and phytosanitary (SPS) measures to restrict imports are more frequent among developing countries than in developed countries.