U.S.-Canada Free Trade: What Are the Issues?

International Relations/Trade,

TRADE IMPACTS OF VOLUNTARY QUALITY STANDARDS FOR LIVESTOCK PRODUCTS

This paper was presented at the INTERNATIONAL TRADE IN LIVESTOCK PRODUCTS SYMPOSIUM in Auckland, New Zealand, January 18-19, 2001. The Symposium was sponsored by: the International Agricultural Trade Research Consortium, the Venture Trust, Massey University, New Zealand, and the Centre for Applied Economics and Policy Studies, Massey University. Dietary changes, especially in developing countries, are driving a massive increase in demand for livestock products. The objective of this symposium was to examine the consequences of this phenomenon, which some have even called a "revolution." How are dietary patterns changing, and can increased demands for livestock products be satisfied from domestic resources? If so, at what cost? What will be the flow-on impacts, for example, in terms of increased demands for feedgrains and the pressures for change within marketing systems? A supply-side response has been the continued development of large-scale, urban-based industrial livestock production systems that in many cases give rise to environmental concerns. If additional imports seem required, where will they originate and what about food security in the importing regions? How might market access conditions be re-negotiated to make increased imports achievable? Other important issues discussed involved food safety, animal health and welfare and the adoption of biotechnology, and their interactions with the negotiation of reforms to domestic and trade policies. Individual papers from this conference are available on AgEcon Search. If you would like to see the complete agenda and set of papers from this conference, please visit the IATRC Symposium web page at: http://www1.umn.edu/iatrc.intro.htmInternational Relations/Trade,

Trade Liberalization in International Dairy Markets: Estimated Impacts

A partial-equilibrium, multiple-commodity, multiregion model of agricultural policy and trade is used to simulate the effects of changes in domestic and trade policy on dairy production, consumption, prices, and trade. Simulations using the ERS-Penn State Trade model analyze the effects of separately and concurrently relaxing domestic income and price supports, and import restrictions and export subsidies, with special attention to tariff-rate and milk production quotas. Modeling results indicate that liberalization would reduce world dairy product supplies and increase the value of dairy trade.Dairy markets, dairy policy, trade models, global liberalization, International Relations/Trade,

A TRADE LIBERALIZATION IN INTERNATIONAL DAIRY MARKETS

International dairy industries remain among the most distorted agricultural sectors. Dairy average bound tariffs remain among the highest of all agricultural commodities, and dairy trade is characterized by a large number of megatariffs and tariff-rate quotas (TRQs). The objective of our study is to examine how the international dairy markets might respond to policy changes under various assumptions, using a partial equilibrium, multiple-commodity, multiple-region model of agricultural policy and trade. Our results indicate that liberalization will reduce supplies, increase dairy trade, and raise world prices.Dairy Markets, Trade Liberalization, Model, Policy, International Relations/Trade,

AGRICULTURAL POLICY REFORM IN THE WTO: THE ROAD AHEAD

Agricultural trade barriers and producer subsidies inflict real costs, both on the countries that use these policies and on their trade partners. Trade barriers lower demand for trade partners' products, domestic subsidies can induce an oversupply of agricultural products which depresses world prices, and export subsidies create increased competition for producers in other countries. Eliminating global agricultural policy distortions would result in an annual world welfare gain of $56 billion. High protection for agricultural commodities in the form of tariffs continues to be the major factor restricting world trade. In 2000, World Trade Organization (WTO) members continued global negotiations on agricultural policy reform. To help policymakers and others realize what is at stake in the global agricultural negotiations, this report quantifies the costs of global agricultural distortions and the potential benefits of their full elimination. It also analyzes the effects on U.S. and world agriculture if only partial reform is achieved in liberalizing tariffs, tariff-rate quotas (limits on imported goods), domestic support, and export subsidies.Agricultural and Food Policy, International Relations/Trade,