Assessing the impact of trade and other policies on global value chain (GVC) participation, positioning and vertical specialization in agriculture and food

This technical paper includes: A literature review of the impact of trade policies and domestic support measures (for example, subsidies) on global value chain (GVC) participation including the effects of tariffs and non-tariff measures, Regional Trade Agreements (RTAs) and Rules of Origin, as well as recent market developments and trade tensions on GVC linkages. The computation of indicators and decomposition for 18 agri-food sectors and 29 countries and aggregate regions, derived from the most recent (2014) release of the Global Trade Analysis Project (GTAP) database. The description of the modelling and simulation exercises using a Computable General Equilibrium (CGE) Model to analyse the effects of tariffs on GVC participation/positioning on countries and regions, and conduct simulation scenarios to quantitatively assess the effects of trade and other policy changes on GVCs participation (scenarios will include reduction on tariff levels and trade liberalization)