Facilitating Adjustment: Sector Experiences from Agriculture, Telecommunications and Chemicals

Abstract

This paper is a follow-up study to Trade and Structural Adjustment: Embracing Globalisation (OECD 2005) which identified policies for successful trade-related structural adjustment.It draws further policy implications through the analysis of three sectors which were not specifically/fully covered in the initial report: agriculture (tobacco and coffee), telecommunications and chemicals.The report consists of two parts.The first part summarises the policy implications drawn from the sectoral case studies while the second part presents the case studies.The study draws some new policy lessons in terms of the usefulness of multilateral commitments, effects of domestic regulations that limit the ability of producers to supply markets (such as licensing and production quotas), potential issues related to state ownership in certain sectors of the economy, relationship between the public and private sectors in the adjustment process, role of subsidies, and sequencing and pace of reform.The case studies on agriculture (tobacco and coffee), telecommunications and chemicals highlight the diverse nature of the adjustment process both among sectors and different groups of countries.The following country experiences are reviewed in the respective sectors with varying emphasis: Brazil, Vietnam, Central America and East Africa in coffee; United States, European Union, Brazil, China and Malawi in tobacco; Morocco, Argentina and India in telecommunications; United States,

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