NORTH AMERICAN AGRICULTURAL MARKET INTEGRATION AND ITS IMPACT ON THE FOOD AND FIBER SYSTEM

Economic change and market dynamics have fundamentally altered the structure and performance of agricultural markets in the United States, Canada, and Mexico within the last 25 years. Many factors have helped shape the current North American food and fiber system, including technological change, domestic farm policies, international trade agreements, and the economic forces of supply and demand. Ratification of NAFTA, for example, helped integrate the North American market, sparking a surge in trade and investment among the United States, Canada, and Mexico. In recent years, efforts to further integrate the continental market seem to have slowed. Broadening the scope of NAFTA to include institutional reforms that lead to a more unified system of commercial law, the establishment of common antitrust and regulatory procedures, harmonization of product standards, and increased coordination of domestic farm, market, and macroeconomic policies would deepen market integration and enhance market efficiency and growth within North America.agriculture, market integration, market segmentation, law of one price, price transmission, elasticities, exchange-rate pass-through, market efficiency, bilateral trade intensity, regional trade agreements, NAFTA, CUSTA, trade policy, WTO, GATT, Industrial Organization, International Relations/Trade, Marketing,

Economic costs and payoffs of bilateral/regional trade agreements

The rapid increase in the number of bilateral and regional free-trade agreements since 1995 is a striking development. The proliferation of these agreements has raised questions among academicians and policymakers about whether they have, in fact, opened markets, created trade, promoted economic growth, and/or distorted trade. This study uses panel data from the 1975-2005 period and the gravity framework to identify the influence of bilateral/regional free-trade agreements on bilateral trade in merchandise, agriculture, and clothing sectors. A benchmark, Heckman sample-selection, and two generalized models, one of which accounts for reciprocal-free-trade-agreement phase-in effects, are used to gauge the impact on partner trade of mutual as well as asymmetric RTA membership.trade policy, bilateral, regional, missing trade, gravity models, reciprocal trade agreements, Agricultural and Food Policy,

Reciprocal Trade Agreements: Impacts on Bilateral Trade Expansion and Contraction in the World Agricultural Marketplace

The rapid increase in the number of bilateral and regional free-trade agreements since 1995 is a striking development. The proliferation of these agreements has raised questions about whether they have, in fact, opened markets, created trade, promoted economic growth, and/or distorted trade. This study uses panel data from 1975 to 2005 and a gravity framework model to identify the influence of reciprocal trade agreements (RTAs) on bilateral trade in the world agricultural marketplace. A benchmark, Heckman sample-selection and two generalized models, one of which accounts for RTA phase-in effects, are used to gauge the impact on partner trade of mutual as well as asymmetric RTA membership. Empirical results show that RTAs increase agricultural trade between member countries but decrease trade between member and nonmember countries. Interestingly, RTAs were found to be particularly effective at expanding agricultural trade and opening markets in developing countries when developing- country trading partners are part of the same agreement.trade policy, reciprocal trade agreements, bilateral, regional, missing trade, gravity models, Agricultural and Food Policy, International Development, International Relations/Trade,

THE NEW WAVE OF REGIONALISM: DOES OUTSIDER/INSIDER STATUS AFFECT THE COMPETITIVENESS OF U.S. AGRICULTURAL EXPORTS?

The degree to which countries are pursuing regional trade agreements (RTAs) has been nothing short of extraordinary. The topic of regional integration is “breeding concern” among academics and policymakers as to the intra- and extra-regional effects of these agreements. This study constructs and uses an updated database of agricultural trade flows from 1992-2008 to shed light on the degree to which insider and outsiders status affects U.S. agricultural exporters and its competing suppliers. Regarding outsider status, we modify the existing approach by incorporating region-specific extra-bloc trade flow variables to examine the degree to which RTAs divert trade from specific regions of the world. The results are quite illuminating. While RTAs may not be trade diverting on net, all RTAs considered exhibit trade diversion with respect to at least some regions. The results have important policy implications for nations that are not actively participating in the latest wave of regionalism.International Relations/Trade,

Bilateral Protection and Other Determinants of Trade: A Gravity Model Approach

Replaced with revised version of paper 10/03/07.International Relations/Trade,

NORTH AMERICAN INTEGRATION IN AGRICULTURE: A SURVEY PAPER

This paper surveys the economic literature about North American integration in the agri-food sector. The purpose of this survey is two-fold: it summarizes the lessons learned, and it identifies areas where further research could provide valuable input into policy discussions. As the integration of North American agriculture progresses, the range of agri-food policies with strictly domestic effects becomes increasingly narrow. Thus, policymakers in North America need to consider the effects that their decisions will have on other NAFTA countries, as well as the impact that decisions by other NAFTA governments will have at home. The paper is organized as follows. Section 2 identifies the major factors contributing to integration and comments on their relative importance. Section 3 summarizes research into the indicators of integration. These studies focus on price co-movements and trade flow data. Section 4 outlines the state of current knowledge regarding foreign direct investment in the agri-food sector, while Section 5 assesses the impact of integration on the structure and performance of the sector. Section 6 discusses opportunities for further integration in the sector, and Section 7 concludes the paper. Throughout the paper, gaps in the knowledge base are highlighted, along with suggested areas for further research.Industrial Organization,

Global Growth, Macroeconomic Change, and U.S. Agricultural Trade

After a decade of uneven export growth and rapidly growing imports, U.S. agriculture has begun to reassert its position in global trade markets. Rising exports and signs of moderating demand for imports mark a departure from previous trends. This report places past trends and emerging developments in perspective by spotlighting the role of two specific factors that help steer U.S. agricultural trade patterns: global growth and shifts in foreign economic activity that affect U.S. exports, and macroeconomic factors underlying the growth of U.S. imports. Consistent with actual changes in the level and destination of U.S. exports, model simulations corroborate the contention that renewed export growth can be sustained by expanding incomes and growing food import demand in emerging economies. In contrast, the rapid growth of U.S. agricultural imports appears less related to domestic income growth than to changing consumer preferences and other, perhaps less sustainable, macroeconomic conditions that fostered the growth of U.S. current account deficits.agricultural trade, trade balance, income growth, economic development, population, macroeconomics, exchange rates, current account, growth projections., Agricultural and Food Policy, Agricultural Finance, International Development, International Relations/Trade,

MARKET ACCESS FOR HIGH-VALUE FOODS

Market access remains a major impediment for expansion of global trade in high-value foods, particularly processed foods. Countries use tariffs and other measures that effectively stimulate imports of relatively unprocessed agricultural commodities at the expense of processed products. Tariff escalation, in which tariffs rise with the level of processing, discourages trade in high-value foods, and trade remedy measures, such as antidumping duties, are concentrated among high-value products. Globalization has provided countries with easier access to capital and technology needed to produce processed food, further affecting trade patterns and markets for high-value foods. A uniform cut in tariffs increases trade in high-value foods more than trade in raw agricultural commodities and improves real wages in developing and developed countries.Food trade, processed food, high-value foods, tariff, tariff escalation, trade remedy measures, sanitary and phytosanitary measures, safeguard measures, revealed comparative advantage, trade complementarities, International Relations/Trade,

Discovery of the Largest Orbweaving Spider Species: The Evolution of Gigantism in Nephila

More than 41,000 spider species are known with about 400-500 added each year, but for some well-known groups, such as the giant golden orbweavers, Nephila, the last valid described species dates from the 19(th) century. Nephila are renowned for being the largest web-spinning spiders, making the largest orb webs, and are model organisms for the study of extreme sexual size dimorphism (SSD) and sexual biology. Here, we report on the discovery of a new, giant Nephila species from Africa and Madagascar, and review size evolution and SSD in Nephilidae.We formally describe N. komaci sp. nov., the largest web spinning species known, and place the species in phylogenetic context to reconstruct the evolution of mean size (via squared change parsimony). We then test female and male mean size correlation using phylogenetically independent contrasts, and simulate nephilid body size evolution using Monte Carlo statistics.Nephila females increased in size almost monotonically to establish a mostly African clade of true giants. In contrast, Nephila male size is effectively decoupled and hovers around values roughly one fifth of female size. Although N. komaci females are the largest Nephila yet discovered, the males are also large and thus their SSD is not exceptional

Conservation of a pH-sensitive structure in the C-terminal region of spider silk extends across the entire silk gene family

Spiders produce multiple silks with different physical properties that allow them to occupy a diverse range of ecological niches, including the underwater environment. Despite this functional diversity, past molecular analyses show a high degree of amino acid sequence similarity between C-terminal regions of silk genes that appear to be independent of the physical properties of the resulting silks; instead, this domain is crucial to the formation of silk fibres. Here we present an analysis of the C-terminal domain of all known types of spider silk and include silk sequences from the spider Argyroneta aquatica, which spins the majority of its silk underwater. Our work indicates that spiders have retained a highly conserved mechanism of silk assembly, despite the extraordinary diversification of species, silk types and applications of silk over 350 million years. Sequence analysis of the silk C-terminal domain across the entire gene family shows the conservation of two uncommon amino acids that are implicated in the formation of a salt bridge, a functional bond essential to protein assembly. This conservation extends to the novel sequences isolated from A. aquatica. This finding is relevant to research regarding the artificial synthesis of spider silk, suggesting that synthesis of all silk types will be possible using a single process