European Union: Shadow WTO agricultural domestic support notifications

The notification of the level of domestic support to the World Trade Organization (WTO) is intended to reflect compliance with obligations entered into at the time of the Uruguay Round. WTO members have often been slow to provide notification of domestic support levels. This makes the process of notification less useful as an indicator of the degree to which changes in policy have or have not benefited the trade system as a whole and exporting countries in particular. The notification of domestic support in the E.U. illustrates the value of a measure that reflects current policies and can therefore act as a basis for negotiation of further disciplines where these are necessary. The E.U. has made major changes in its Common Agricultural Policy (CAP) over the period since 1992 when the MacSharry reforms were implemented. Payments originally notified in the blue box (related to supply control) have over time been changed until in their present form they are unrelated to current production or price levels, and hence can satisfy the criteria for the green box. The E.U. has therefore much more latitude in trade talks to agree to reductions in the allowable trade-distorting support. This paper reproduced the E.U. notifications relating to 2003/04 and extends these with official statistics to the year 2006/07. It then projects forward the components of domestic support until the year 2013/14, based on forecasts of future production and estimates of policy parameters. The impact of a successful Doha Round is simulated, showing that the constraints envisaged in the WTO draft modalities document of May 19, 2008, would be binding by the year 2013, at about the time the next budget cycle in the E.U. starts. Without the Doha Round constraints, further reform might still happen for domestic reasons, but the framework provided by the WTO for domestic policy spending would be less relevant. In that case, much could hinge on the legitimacy of the Single Farm Payment system under the current rules governing the green box.

Influence of dynamics on the changes in tropical cloud radiative forcing during the 1998 El Niño

Satellite measurements of the radiation budget and data from the U.S. National Centers for Environmental Prediction–National Center for Atmospheric Research reanalysis are used to investigate the links between anomalous cloud radiative forcing over the tropical west Pacific warm pool and the tropical dynamics and sea surface temperature (SST) distribution during 1998. The ratio, N, of the shortwave cloud forcing (SWCF) to longwave cloud forcing (LWCF) (N = −SWCF/LWCF) is used to infer information on cloud altitude. A higher than average N during 1998 appears to be related to two separate phenomena. First, dynamic regime-dependent changes explain high values of N (associated with low cloud altitude) for small magnitudes of SWCF and LWCF (low cloud fraction), which reflect the unusual occurrence of mean subsiding motion over the tropical west Pacific during 1998, associated with the anomalous SST distribution. Second, Tropics-wide long-term changes in the spatial-mean cloud forcing, independent of dynamic regime, explain the higher values of N during both 1998 and in 1994/95. The changes in dynamic regime and their anomalous structure in 1998 are well simulated by version HadAM3 of the Hadley Centre climate model, forced by the observed SSTs. However, the LWCF and SWCF are poorly simulated, as are the interannual changes in N. It is argued that improved representation of LWCF and SWCF and their dependence on dynamical forcing are required before the cloud feedbacks simulated by climate models can be trusted.