Measuring the export subsidy equivalents (ESEs) through price discrimination generated by exporting state trading enterprises
2005
Suzuki, N.(Kyushu Univ., Fukuoka (Japan). Faculty of Agriculture) | Kinoshita, J. | Fujii, T. | Kaiser, H.M.
The Doha Round framework agreements state that all forms of export subsidies should be eliminated, which includes not only export subsidies through food aid and export credits, but also "consumer financed" ones through exporting STEs. Therefore, one needs a theoretical definition and practical measurements of "hidden" export subsidies unregulated under the current WTO rules. This paper proposes a basic definition for the "consumer financed" export subsidy equivalent (ESE) created by STEs' price discrimination among export markets as well as price discrimination between export and domestic markets. Examples of calculated ESE values are shown using the Canadian dairy STE with price discrimination between export and domestic markets and the Australian wheat STE with price discrimination among export markets. The ESE proposed here would provide a useful measurement of "consumer financed" export subsidies.
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