According to OECD, total support to agriculture, measured
by producer subsidy equivalents, averages 45% of the total
value of production in the OECD-countries, ranging from
80% in Japan to 4% in New Zealand (OECD, 1996a, 1996b).
Large benefits could be reaped by liberalization of the world
trade in agriculture and a reduction of national agricultural
subsidy programs (Anderson, 1995). A slow reduction of
national agricultural subsidy programs is to be expected in
coming years, in consequence of recent World Trade Agreements.