Trade Policy and Producers Support

Master 2020/2021

Type: Elective course (International Trade Policy)

Area of studies: Economics

Delivered by: Department of Trade Policy

Where: Institute of Trade Policy

When: 2 year, 1, 2 module

Mode of studies: offline

Instructors: Tatyana Mihaylovna Isachenko

Master’s programme: International Trade Policy

Language: English

ECTS credits: 4

Contact hours: 44

Full Syllabus

Abstract

The aim of the course is to provide students with a knowledge and understanding of the main trends of the interaction between government and business in the domestic producers’ support. The teaching of this discipline should be preceded by the study of general disciplines: "Macroeconomics", "World Economy", "International Economic Relations", "Instruments for regulating foreign economic relations".

Learning Objectives

To familiarize students with the main categories, concepts and principles of using tools for supporting exporters at the level of an individual state, as well as at a supranational, international (multilateral) level.
To familiarize students with the main approaches to the development and implementation of trade policy and main domestic producers’ interests promotion tools.
To analyze main instruments areas of government and business interaction.
To study the modern system of multilateral agreements and commitments in the application of measures of state incentives for domestic producers’ support.

Expected Learning Outcomes

To describe the role of government in the competitive advantage creation and development.
To formulate Porters’ Diamond and the competitive advantages of nations.
To use the methods of real business protection in practical situations.
To review the trade policy and government and business interaction.
To explain the theoretical approach to government and business interaction
To to use quantitative analysis tools.
To explain the specific features of the industrial subsidies.
To describe the sectoral distribution of subsidies and the relative importance of different instruments of subsidization.
To examine subsidies as a pervasive feature of agricultural policy in both high and low income countries.
To review the key targets in the United Nations Sustainable Development Goals launched in 2015.
To name the export subsidies and their use in developed countries in the past
To review export subsidies as core issue of the World Trade Organization (WTO) negotiations on export competition.
To measure the value and the impact of the non-financial support.
To name regional trade agreements and to explain their role in expanding trade.
To explain the role of foreign missions in export support and domestic producers’ promotion.
To review WTO rules that allow to counter and retaliate the subsidizing.
To review trade disputes on financial measures of support.
To present the task on the domestic producers’ support system in the country of choice.

Course Contents

The interaction of government and business in the field of trade policy
Methodology of government and business interaction analysis. The role of the government in the competitive advantage creation and development. Porters’ Diamond and the competitive advantages of nations. The main areas and aims of interaction. Institutional structure of the government and business interaction. Organization of real business protection in practical situations. Trade policy and government and business interaction.
Theory and quantitative tools of the state support assessment
The evolution of the theoretical approach to the government and business interaction. Quantitative and detailed trade policy information and analysis and their importance. Quantitative analysis tools. Analyzing statistical sources. Subsidies notifications by countries as a source of information. Industry SWOT analysis from the government support point of view.
Industrial subsidies and their regulation in the multilateral rules
The specific features of the industrial subsidies. Subsidization of industrial activities as the allocation of scarce resources distortion. , Burden on government finances and generates friction in international trade. The sectoral distribution of subsidies and the relative importance of the different instruments of subsidization. The economic effects of subsidy policy.
Agricultural subsidies and their specific regulation
Subsidies as a pervasive feature of agricultural policy in both high and low income countries. the historical and potential roles of subsidies and their more recent use. Agricultural subsidies and their potential to make a significant contribution in addressing continuing and emerging challenges to food insecurity and poverty. Evidence on the food security and poverty impacts of different agricultural subsidies in developed and developing countries.
Export support measures: state commitments and rules
Export competition as a longstanding issue in the WTO’s negotiations and the elimination of all forms of export subsidies. Key targets in the United Nations Sustainable Development Goals launched in 2015. Export subsidies and their use in developed countries in the past. Export subsidies and a market-distorting instrument of agricultural support, with negative implications for trading partners and world markets. Incentives to domestic producers, world prices depression. Boosting the supplies of exportable products and affecting the competitiveness of those countries. or these reasons, Export subsidies as core issue of the World Trade Organization (WTO) negotiations on export competition.
Non-financial export support measures
Assessing the value and the impact of the non-financial support. Types of non-financial support measures. Participation in the exhibitions and trade fairs. Trade missions and the organization of their interaction with domestic supporters. Regional trade agreements and their role in expanding trade. The role of information as a market expansion and promotion tool. Government agencies and their information database. International consultants.
The role of foreign missions in export support and domestic producers’ promotion
Countering Discriminatory Trade Restrictions. Other measures of domestic producers’ support
Students’ presentations on the domestic producers’ support system in the country of choice.

Assessment Elements

Attendance
Class discussions
Home assignment reports
Final test
Attendance
Class discussions
Home assignment reports
Final test

Interim Assessment

Interim assessment (2 module)
0.1 * Attendance + 0.3 * Class discussions + 0.3 * Final test + 0.3 * Home assignment reports

Bibliography

Recommended Core Bibliography

Gnangnon, S. K. (2019). Trade Policy Space, Economic Growth, and Transitional Convergence in terms of Economic Development. Journal of Economic Integration, (1), 1. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.ris.integr.0762

Recommended Additional Bibliography

Low, P., & Capling, A. (2010). Governments, Non-State Actors and Trade Policy-Making : Negotiating Preferentially or Multilaterally? Cambridge University Press.

Course Syllabus