Commodity Policy Compatibility with Free Trade Agreements

21 Pages Posted: 1 Feb 1998

See all articles by Daniel A. Sumner

Daniel A. Sumner

University of California, Davis - Department of Agricultural and Resource Economics

Daniel G. Hallstrom

University of California, Davis - Department of Agricultural and Resource Economics

Date Written: March 1997

Abstract

We analyze the effects of international market opening in the context of a variety of common agricultural commodity programs. We show that direct payments programs are more compatible and price support policies are less compatible removal of border barriers. The second half of the paper develops the implications for trade negotiations. We argue that internal subsidy program that distort trade will be disciplined by limits on import barriers and export measures and that devoting negotiating effort on direct sanctions for internal policies is likely to be counter productive.

JEL Classification: Q1, F1

Suggested Citation

Sumner, Daniel A. and Hallstrom, Daniel G., Commodity Policy Compatibility with Free Trade Agreements (March 1997). Available at SSRN: https://ssrn.com/abstract=42925 or http://dx.doi.org/10.2139/ssrn.42925

Daniel A. Sumner (Contact Author)

University of California, Davis - Department of Agricultural and Resource Economics ( email )

One Shields Avenue
Davis, CA 95616
United States
530-752-5002 (Phone)
530-752-5614 (Fax)

Daniel G. Hallstrom

University of California, Davis - Department of Agricultural and Resource Economics ( email )

One Shields Avenue
Davis, CA 95616
United States

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