Sensitive Product Treatment in Agricultural Trade Negotiations

The fact that trade, and especially agricultural trade, remains far from free is puzzling, since the superiority of free trade receives overwhelming support among economists (Gawande and Krishna, 2003; Rodrik, 1994). International trade scholars have devoted significant resources to forecasting the impact of trade policy reforms (for a survey of these studies see Congressional Budget Office, 2005), and their findings are relevant inputs for officials negotiating a trade agreement as well as for politicians in charge of ratifying it. The perceived gains and losses attached to different outcomes have been identified as a significant factor shifting the outcome of a trade agreement negotiation (McMillan, 1990). Less well-known are the factors that would impact the result of a negotiation round involving agriculture. While political scientists have devoted significant resources and developed numerous theories to explain the pattern of bargaining outcomes, the number of empirical assessments remains limited. Among the factors to blame for the low number of empirical evaluations is the scarcity of information regarding negotiation strategies and outcomes (Odell, 2002). The lack of research in this area is puzzling, since countries negotiating regionally and multilaterally have many times struggled to satisfactorily conclude negotiations due to a lack of consensus on agriculture. The potential gains that a reduction in agricultural protection worldwide could generate, and the limited knowledge on the ways negotiation outcomes can be affected, are the main motivations for this study. As stated by Hoekman and Anderson (1999) in reference to reaching an agreement on agriculture in the current WTO Doha Round of negotiations, “The potential gains from liberalization are large”, but “Getting there is another matter” (p. 175). This study focuses on U.S. trade negotiations with Western Hemisphere countries, with particular attention to sensitive agricultural products, about which the most heated bargaining occurs. Arguably as a consequence of the lack of progress at the multilateral arena, the U.S. has embarked on bilateral trade negotiations with several countries, but with a particular emphasis with Western Hemisphere partners. Thus, over the last 10 years it has ratified trade agreements with Chile, Peru, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua (the last six as part of the DR-CAFTA Agreement), and signed but not yet ratified agreements with Colombia and Panama. Following Trefler (1993), a simultaneous equation model is developed to estimate the correlation between the change in market access (ΔMA) as a result of free trade negotiations, and a number of political economy (PA) and negotiation context (NC) variables suggested by the endogenous tariff theory to be associated with the level of protection granted to a sector. The change in market access in the context of this study is represented by changes in import tariffs and tariff-rate-quotas negotiated as part of the preferential trade agreements (PTAs). While we acknowledge the increasing importance of non-tariff barriers (other than TRQs) as a way to afford protection from imports, PTAs usually do not include specific outcomes on NTBs, and therefore gauging the change in NTBs resulting from a PTA is not possible. Negotiation process variables (NP) primarily bargaining strategies, are seen by many scholars as important intervening variables to explain the pattern of market access achieved in bargaining. By focusing on sensitive agricultural products, this study controls for (NP) variables, since negotiations on sensitive agricultural products between the U.S. and its developing Western Hemisphere partners are assumed to have entailed the use of strong bargaining strategies on both sides. Political economy variables subject to be used are economic size, concentration ratios, import penetration ratios and their change, capital/labor ratios, and sectoral to total labor ratios, all argued to be positively related to the level of protection granted to a sector. Among feasible negotiation context variables are relative power of nations, foreign direct investment in the partner’s economy, unemployment rate, and tax structure (dependence on import policies as a source of revenues). The level of imports (IMP) is modeled to be a function of comparative advantage variables (CA) and the change in market access ΔMA. ΔMA = f(PA, NC NP) IMP = f(CA, ΔMA) The findings from the quantitative assessment are to be complemented with findings from selected case studies, thus expanding our understanding of the factors affecting the outcome of the bargaining activity over sensitive agricultural products in the context of preferential trade agreements.trade negotiations, agricultural trade, free trade agreements, political economy, Agricultural and Food Policy, International Relations/Trade, Political Economy, F59, Q17,

Regional and farm specialisation in Spanish agriculture before and after integration in the European Union

In this paper, we study the evolution of agricultural product specialisation at farm and county level from 1979 to 1997 in Spain, thus covering all the stages of the gradual implementation of the Common Agricultural Policy. We use a multiproduct version of Theil and Finizza's index of segregation that allows us to decompose farm product specialisation into county specialisation with respect to the national level, i.e., the usual measure of regional specialisation, and farm specialisation within counties. Our results confirm the importance of increasing regional specialisation but also highlight that trends of farm specialisation within counties have varied across large agricultural areas. In particular, regions more specialised in export-oriented products seem to have speeded regional specialisation

INVENTORYING RESOURCES: AN APPLICATION TO PRODUCT-ORIENTED AGRICULTURE

Different resources are necessary in the new, product-oriented agricultural environment. This article explores the question of what information is best suited for strategic analysis and strategy formulation for firms involved in product-oriented agriculture. A new framework for inventorying agricultural resources is introduced, and suggestions for implementing it are included.Farm Management,

INVENTORYING RESOURCES: AN APPLICATION TO PRODUCT-ORIENTED AGRICULTURE

Different resources are necessary in the new, product-oriented agricultural environment. This article explores the question of what information is best suited for strategic analysis and strategy formulation for firms involved in product-oriented agriculture. A new framework for inventorying agricultural resources is introduced, and suggestions for implementing it are included.Farm Management,

Genetic Information in Agricultural Productivity and Product Development

A prominent facet of recent changes in agriculture has been the advent of precision breeding techniques. Another has been an increase in the level of information inputs and outputs associated with agricultural production. This paper identifies ways in which these features may complement in expanding the variety of processed products, the level of productivity, and the rate of change in productivity. Using a martingale concept of ﾓmore information,ﾔ we identify conditions under which more information increases the incentives to invest and engage in product differentiation. A theory on how genetic uniformity can enhance the rate of learning through process experimentation, and so the rate of technical change, is also developed.experimentation, genetics, information, martingale, sorting, uniformity, value added.

How federal farm spending distorts measures of economic activity

Gross national product ; Agricultural price supports

THE PERFORMANCE OF AGRICULTURAL MARKETING COOPERATIVES IN DIFFERENTIATED PRODUCT MARKETS

Cooperatives, product differentiation, agricultural marketing, Agribusiness,

ENDOGENOUS QUALITY AND AGRICULTURAL POLICY ANALYSIS

The typical analysis of agricultural policy assumes that the commodity of interest is homogeneous, and that it does not change as a result of policy implementation. This paper develops a model of agricultural policy analysis when the restriction of product homogeneity is relaxed and policy-induced quality responses are incorporated.agricultural policy analysis, quality variation, Agricultural and Food Policy,

Agricultural Biotechnology: Opportunities and Challenges for the Philippines

Developing countries, still heavily dependent on agriculture, must now harness biotechnology to modernize agricultural production and diversify product outputs. The Philippines was one of the first Asian countries to establish a biotechnology research and development program. However, not much progress in harnessing the tools of biotechnology has been achieved, especially in the area of varietal improvement. Despite an early realization of the importance of biotechnology in national agricultural development, there was little political will to provide resources for this program to move forward. Modern technology must be regarded as one of the tools in modernizing Philippine agriculture. Its role in varietal improvement, biosecurity, product standards and pest and disease prevention and management must be enhanced. A critical mass of highly trained human resources in the natural and social sciences that will undertake the research and development activities in agricultural technology must also be assured. Private participation must also be encouraged.biotechnology, agricultural technology, agriculture sector, agricultural productivity