Abstract
Organization for Economic Co-operation and Development
(OECD) countries are reducing total agricultural support, from price supports
to fiscal support. Latin America and the Caribbean (LAC) is also making the
same change of price supports fiscal support given to the free trade agreements
signed (or signed) with the United States and other countries. These exogenous
changes in the structure of support dictated by trade liberalization must be
taken as an opportunity to introduce public policies and implement programs to
support the transition to maximize the benefits of future integration of LAC
agricultural sector to international markets. Reviewing and measuring the price
supports and taxes, especially private property, should key for the actors
involved in the design of public policies to analyze and respond to the needs
and opportunities of the sector element agriculture in the region facing an
increase in trade liberalization of their products. Although the priority of
public spending on agriculture is investment in public goods and services, the
Government will always have the need to be able to support the most vulnerable
population in response to catastrophic events or price shocks. This contingent
response is increasingly common in a context of increased volatility in
international prices and the number of natural disasters time. In LAC
countries, such as Mexico and Brazil, have already several years of experience
with agricultural risk management programs and recent reforms in that area. A
reform in the agricultural public spending is more important than ever given
the current context of trade liberalization, volatility of international food
markets, and climate change.
