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Integrating and updating Switzerland as a special trade block in the CAPRI modelling system in view of trade policy scenarios (SwissTrade)

Funding

FOAG (Federal Office for Agriculture), Bern, Switzerland

AgrosCope (Swiss centre of excellence for agricultural research), Switzerland

Duration

First Study: December 2010 - December 2011

Follow-up studies: Several from 2012 onwards and ongoing

Follow-up studies: December 2019

Overview

This project integrates Switzerland as a separate trade block in the CAPRI modelling system. Within the first project an ex-post data set for Switzerland has been compiled and is used to replace default FAO data. An outlook to 2020 and beyond covering market balances, prices and trade flows has been developed. The parameterisation of the behavioural functions are adapted to suit those of Switzerland. The new model components have been tested for functionality in scenarios.

After the initial phase the focus varied depending on the needs and interests of the funding Swiss agencies at the time:

  • Options for fine tuning of baseline results

  • Options to constrain implausible "Armington effects" in trade policy scenarios,that may follow from a large divergence of demand response in terms of quality adjusted quantities ("utility points") and physical quantities (tons)

  • Reparameterisation of the demand system and Armington parameters

    2019 project

  • Improvement of the quality of ex-ante impact assessments carried within the Swiss Federal Administration

  • Futher development of an existing partial equilibrium model supporting the Swiss policy decision making in international trade agreements

  • Evaluation of the impact of new market access conditions on the Swiss agriculture at the tariff line level taking into account actual and potential trade

  • Extensions of this project: several methodological developments on the following aspects: a) demand; b) supply;c) intermediate consumption; d) production factors: land; e) exports; f) tariff rate quotas; g) model applications and maintenance.

Contributions of EuroCARE

The first study was carried out by EuroCARE expert Wolfgang Britz. Since 2012, technical support has been transferred to Marcel Adenäuer and then almost completely to Peter Witzke.