Taiwan’s Agricultural Support Estimates and International Comparison
Date Issued
2010
Date
2010
Author(s)
Chen, Hou-Chieh
Abstract
The purpose of this study is to estimate Taiwan’s agricultural support level. The 2007 OECD version of support indicators was used to calculate Taiwan’s Producer Support Estimate (PSE), Consumer Support Estimate (CSE), General Services Support Estimate (GSSE) and Total Support Estimate (TSE) for 1990-2007. The empirical results show that Taiwan’s average PSE is 74 billion NT dollars and the corresponding average %PSE was 26.2% over the 1990-2007 period. Our findings also suggest that no significance difference exist in aggregate support to producers over the same time span. The %PSCT, %GSSE and %TSE for individual commodities, on the other hand, decreased substaintially since Taiwan’s entrance to WTO in 2002. Comparing Taiwan’s support level to those of OECD countries, especially to countries with many small farms such as Japan, Korea and Switzerland, Taiwan’s supports to agriculture is relatively moderate. To comply with AoA and also accelerate their agricultural reforms, some production distorting measures have been replaced by various decoupled payment schemes in OECD member states in recent years. But from our empirical results, we found that a few market distorted measures still applied in Taiwan to support its agricultural producers, which is in the opposite direction of global trend. We suggest that, instead of applying the market distortion measures, decoupled direct payment and general service measures could be used to support Taiwan’s agricultural sector.
Subjects
Producer Support Estimate (PSE)
Consumer Support Estimate (CSE)
General Services Support Estimate (GSSE)
Total Support Estimate (TSE)
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