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AGRICULTURE AND DEVELOPMENT: THE CASE FOR POLICY COHERENCE – ISBN-92-64-01334-2 © OECD 2005 46 – 3. POLICY COHERENCE BETWEEN OECD COUNTRY AGRICULTURAL TRADE POLICIES… The key characteristic of RTAs is their discriminatory nature. Therefore the consequences for PCD must distinguish between those developing countries which are included in the RTA (where this is relevant) and those which are on the outside. Developing countries which are offered preferential access to an OECD country market will experience trade creation plus the positive impact of trade diversion from less-preferred suppliers.
These country-specific impacts can be easily explored in single-commodity partial equilibrium models, such as those for cotton, dairy, groundnuts, rice and sugar reported in Beghin and Askoy (2003). Support to the cotton sector is not explicitly measured by OECD in its PSE work. But support to the cotton sector in OECD countries and elsewhere significantly undermines livelihoods and incomes in developing country cotton producers, as highlighted by the special attention given to the cotton initiative promoted by four West African countries (Benin, Burkina Faso, Chad and Mali) in the Doha Development Agenda.
Despite these differences, some general conclusions on the likely impact of OECD country agricultural policies on developing countries have now been established. Empirical estimates of policy incoherence Overview of results. 2 In this section, we focus on the estimated aggregate impacts on developing countries as a group, while the following section examines the estimated impacts on particular countries and groups of countries. These studies provide a range of estimates and are not directly comparable.
Agriculture And Development: The Case for Policy Coherence by Organisation for Economic Co-Operation a