Description

The coresponsibility levy reduces producer revenues by a set percentage. State intervention prices and state purchase prices cause producer and consumer prices to develop at a different rate.

The coresponsibility levy can be regarded as a product-specific charge that increases government revenues. It is permitted for a short period of time under WTO rules, although it is complex to administer.

Requirements

• Compatible regional and world trade law (WTO conformity)
• A properly functioning country-wide administration and monitoring system with access to the relevant information and sufficient technical and human capacities for its design, implementation and monitoring
• Clear and coherent political strategy and targets for policy-makers and public authorities
• Clear responsibilities in public authorities
• Clearly recognisable product characteristics
• Country-wide register of farms and / or enterprises involved in the agri-food sector
• Constant market surveying and forecasting

Possible Negative Effects

• Market distortion
• Misuse to obtain covert state financing