Different from many single-commodity partial equilibrium models, the Export Restrictions And import Tariffs Overall impacts (ERATO) model illustrates how a multi-market model can be used to analyze trade policy options in a context of a multi-product value chain. As an illustration, we examine the impacts of trade restrictions imposed along three stages of the oilseed value chain. The model can be easily adapted to other value chains, eg. Cotton, or expanded to include other oilseeds (eg. peanuts).
This application considers 11 regions: ten countries (Argentina, Brazil, Canada, China, European Union, India, Indonesia, Malaysia, Ukraine, and United States) and a rest-of-the-world aggregate are considered in the model, as they are the major producing, exporting, and importing countries of oilseed products; and four oilseeds. Nevertheless, the sectoral and regional coverage of the model can be modified easily in GAMS (the software of implementation) and the structure of input data is simplified using an Excel workbook.
This document describes the theory and the GAMS code developed to implement this global multimarket partial equilibrium model where three stages of the oilseed production are considered: (i) production of seeds, (ii) production of meals and oils, (iii) production of biodiesel.
The GAMS codes of the ERATO model are available to AGRODEP members here.