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Update to Foreign Crop Subsidy Database 2014-2021

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Update to Foreign Crop Subsidy Database 2014-2021 Update to Foreign Crop Subsidy Database 2014-2021 These data are continually updated and current as of July 31, 2021. If you find errors or have access to newer data, please contact: [email protected] LIST OF COUNTRIES (Click on country to go to the country’s page) ARGENTINA NIGERIA AUSTRALIA PAKISTAN BRAZIL RUSSIA CANADA SOUTH AFRICA CHINA SOUTH KOREA EGYPT THAILAND EU-28 TURKEY INDIA UNITED KINGDOM INDONESIA UZBEKISTAN JAPAN VIETNAM MEXICO WEST AFRICA 1 LINKS TO TABLES CANADA • Provincial Blend Mandates CHINA • Land Rotation Program Payments by Production Practice • Expansion Targets for China’s Crop Rotation and Fallowing Program • China’s Proposed Tariff Changes on US Exports of Agricultural and Food Products • Agricultural Domestic Support Payments • Tariffs and Taxes on Biodiesel • North East China Corn Processor Subsidy Payments • Total Central Government Cotton Subsidies Under the Target-Price-Based System • Purchase Price of Sugar Cane in Major Producing Provinces EGYPT • Minimum Protein Requirements for Egyptian Wheat INDIA • Import Tariffs on Corn • National Average Monthly Wholesale Price of Corn • National Average Monthly Wholesale Price of Common Rice • Import Tariffs on Sorghum • Import Tariffs on Wheat and Wheat Products • National Average Monthly Wholesale Price of Wheat • Indian Wheat Procurement and Public Distribution System (PDS) Operation INDONESIA • Indonesian Government Purchasing Price for Paddy and Rice • Maximum Retail Prices for Rice JAPAN • Support Payments for Strategic Crops • State Traded Rice Products Covered by WTQ TRQ • Rice and Rice Products Imported Outside TRQ • CPTPP: Rice Country Specific Quota for Australia MEXICO • Corn and Sorghum Incentive Information • PROGARO Productivo Payments 2016/17 • PROGARO Productivo Payments 2017/18 • PROAGRO Productivo Payments 2018/19 • Target Income Prices 2018/19 • Avg. 2016 Monthly Wholesale Price for White Mexican Corn • Avg. 2016 Monthly Market Prices for “Morelos Type” Milled Rice PAKISTAN • Duty Structure for Soybeans 2 • Sugar Cane Indicative Prices by Province SOUTH AFRICA • SAFEX Prices for Corn • Sugar Custom Duties as of Apr. 2015 • Sugar Customs Duties as of Oct. 2017 • Sugar Cane Prices Paid to Growers SOUTH KOREA • Applied Tariff Schedule for Oilseeds THAILAND • MY 2016/17 On-Farm Pledging Program • MY 2017/18 On-Farm Pledging Program TURKEY • Subsidies for Domestic Certified Seed Producers • Grain Premiums • Grain Support System MY 2016/17 • Grain Support System MY 2017/18 • Grain Tariff Rates • Grain Tariff Rates 2018 • Sugar Production Quotas MY 2014/15 – MY 2016/17 • Sugar Production Quotas MY 2017/18 – MY 2019/20 • Government Support for Wheat Producers • TMO Wheat Intervention Prices and Wheat Premiums VIETNAM • Vietnam Soybean Import Tariffs 2018 1 ARGENTINA General ● Exports o Export Quota System for Corn and Wheat ▪ Corn and wheat are subject to the export quota system known as the Registry of Export (ROE). ▪ This policy artificially lowers prices by limiting exports and announcing export quotas without a given pattern. ▪ These policies reduce corn and wheat production in favor for soybean production. o Export Licenses (ROEs) ▪ The USESCI issues and regulates export licenses (ROEs) in the grain and beef sectors. ▪ Exporters have 45 days from the date of the export license request to notify the Argentine Customs Office of the destination of the shipment. ▪ If within 5 days after the license is approved, the exporter pays the export tax and the destination notification period is extended 365 days. ▪ The government has provided ROEs for 8.0 million tons. ▪ This system is expected to end in December 2015. ▪ Elimination ● In 2015, the incoming government opened exports and eliminated ROEs. ● All export licenses schemes first developed in 2006 would be eliminated. ● This is most significant for corn, wheat, beef, and dairy products. o Export Rebate Modifications ▪ Decree 1341/2016 raised and/or introduces export rebates for various agricultural products, including beef, horticultural products, organic products, plant oils, and various grain flours/meals. ▪ The purpose of this measure is to promote diversified agro-industrial development by promoting greater value-added production chains and exports. ▪ Its estimated cost is over US $160 million. ▪ This decree helps meets one of the Macri Administration’s main campaign promises to encourage innovation in the sector and bolster regional rural economies. 2 ▪ This decree also aims to support a burgeoning sector of the agro-export complex – organic and geographically-specific production. ▪ On top of the product-specific export rebate, exporters will be able to offer an additional 0.5% rebate for those products outlined by geographical origin or alternative production methods (organic, etc.). o Export Taxes ▪ In 2015, the incoming government reduced and eliminated export taxes. ▪ There will be a gradual reduction of export taxes for soybeans and its byproducts by 5% every year and elimination of export taxes for all other agricultural products. ▪ Decree 757/2018 ● Argentina issued the decree in August 2018, which modifies its campaign pledge to reduce export taxes on soybean oil and meal products, and imposed a six month suspension of the gradual tax reduction. All products will now be subject to variable export tax. ● Raw commodities, including corn, wheat, soybeans and soybean products, will be taxed at 4 Argentine pesos/1 US Dollar (an increase of 10.8% at current exchange rate.) This change is expected to extend to the end of December of 2020. ● Corn margins will be squeezed due to the addition of the 10% tax on exports. ▪ Decree 37/2019 o On December 14, 2019, the GOA eliminated the 4 pesos per US dollar cap on export taxes on grains, and raised taxes on all grains to 12%. o In addition, Congress passed Law 27,541 “Social Solidarity and Productive Reactivation” in which the government gained authorization to increase export taxes further, up to 15%. o With the current rates from November 2019 and the increase from Decree 37, this puts a max of 15% increase in export tax on wheat, barley, corn and rice. For soybeans, the rate is 33%. The rates became effective March 4, 2020. o ● Import Tariffs o Argentina increases import tariffs – no commodities in database are affected. ● Policy Changes o As of April 2014, there is no production or processing subsidies for grains in Argentina. 3 o On December 10, 2015, policy changes were made including the reduction of the export tax on soybeans and its byproducts by 5% and eliminating export taxes on all other agricultural commodities. o On December 17, 2015, policy changes were made that included the removal of foreign exchange restrictions and devaluation of the Argentine peso by about 45% (over 50% to date). This boosted competitiveness of agricultural exporters and was a positive signal to producers who waited for such an adjustment to begin liquidating their inventories. ● Production and Processing Subsidies o There are no production or processing subsidies for grains in Argentina ● Wheat and Corn o Wheat and Corn Mills Subsidies ▪ Wheat and corn mills are given a monthly subsidy for the volume of wheat sold in the domestic market (subject to a maximum volume per mill established by the Group of Coordination and Evaluation of Subsidies for Internal Commerce (USESCI), formerly the National Office of Agricultural Trade Control (ONCCA)). ▪ The subsidy is the value per metric ton based on the difference between the theoretical FAS price (TFP) published by the Ministry of Agriculture (or price supposedly paid by the millers to corn and wheat farmers) and the “supply price” published by the Secretariat of Domestic Trade. ▪ Small- and medium-sized farmers (up to 800 MT of wheat and up to 1,240 MT of corn production levels) are rebated the difference between the FOB official price and the TFP published daily by the Ministry of Agriculture. o Wheat and Corn Policies ▪ Policies for wheat and corn are primarily aimed at maintaining sufficient domestic supplies at reduced prices through: ● Domestic subsidies ● Export taxes ● Controls on export licenses ▪ There is also a subsidy program in place for small and medium producers that allow for a rebate of export taxes paid. Biofuels ● Average Countervailing Duty 2013 o In 2013, the EU implemented an average countervailing duty of 24.6% for 5 years on biodiesel imports from Argentina due to alleged dumping, which caused imports of Argentine biodiesel to drop to almost nil. o No changes in EU policy are expected for 2014 and 2015. 4 ● Ethanol Production o Currently (as of July 2017), the growing ethanol industry is based on sugarcane and more recently grains. ● Exports o Export Rebate ▪ As of July 2017, bioethanol exports from non-Mercosur countries have a 4.05% rebate. o Export Tax ▪ In June and July 2017, the Government of Argentina set the export tax on biodiesel at zero percent (it dropped from 0.13% set in May 2017). ▪ No biodiesel exports are expected in 2019 to the U.S. despite its preliminary lowering of the countervailing duties due to remaining anti- dumping duties. ● Imports o As of July 2017, bioethanol imports from non-Mercosur countries pay 20%. ● Policies o 2006 Biofuels Law 26,093 ▪ Since the beginning of 2007, Argentina has had in place a Biofuels Law which mandates gasoline to be mixed with bioethanol and diesel with biodiesel. The original mandates were 5% each, but after several modifications, gasoline is currently (as of July 21, 2016) at 12% and diesel at 10%. ▪ These efforts are influenced by their long-term strategy to mitigate emissions via sectorial plans between energy, transportation, land use, agriculture and forestry. ▪ Argentina has no specific environmental or social/economic sustainability criteria for biofuels. ▪ The Argentinean Government raised the biodiesel mix under the local mandate from 8% to 10% in 2014 to partially offset smaller exports due to market restrictions imposed by the EU. The government will increase the biodiesel mix from 8% to 9% in January 2014 and from 9% to 10% in February 2014.
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