A Simple Measure for Agricultural Trade Distortion

A simple measure is proposed that estimates the volume of trade distortion caused by the agricultural policies of trading countries. The index, called a TDS (Trade Distorted by support), would be useful for trade analysts to compare the trade impact of agricultural support policies across countries and commodities. The TDS index can be calculated largely from existing information on agricultural support. A TDS index might also be used to assess damages in trade dispute settlement cases.