The Political Economy of International Trade Law: Essays in Honor of Robert E. Hudec

By Daniel L. M. Kennedy; James D. Southwick | Go to book overview
Save to active project

COMMENT
WTO and policy reform in developing countries
TERRY L. ROE

I am pleased to be asked to participate, and to have the opportunity to comment on Professor Schuh's essay. I compliment Ed Schuh on effectively providing structure and substance to an exceptionally broad topic with numerous interrelated issues. The thrust of my remarks expands on some of the issues raised in his essay.

The essay begins, importantly in my view, with an overview of the historical background leading to pressures of imposing the discipline of the GATT on agriculture, pointing out that many developing countries, even today, continue to intervene in other sectors of their economies with deleterious consequencesfor agriculture. At the same time, the industrial market economies tend to support agriculture using instruments that overvalue the sector's sector-specific resources with various implications to rent-seeking activities by agricultural interests. These instruments induce the sector to “over produce, thus causing world market prices for many agricultural products to fall below their otherwise market clearing levels. I expand upon this theme later.

The next section of Schuh's paper considers two conundrums: interventions by government to restrict own country exports, and distortions in currency values. Distortions in currency values tend to implicitly tax the producers of agricultural exportables. These distortions in developing countries are closely tied to the actions of a country's import competing industries to limit foreign competition, and to the political economy problem of replacing the tax revenues earned from trade with broader based tax revenues. Thus, in developing countries, policies causing major distortions in agricultural trade lie outside of the sector, a point I will also return to later.

The third section of the paper focuses on the traditional issues of trade liberalization, technical standards, intellectual property rights, and agriculture's multifunctionality. The fourth section focuses on competitiveness and moving toward reform. The only marginally critical comment I might have is Schuh's omission of regional trade agreements (RTA) among nations which have had major implications for agricultural trade.

Since the incentives for trade reform depend on the global economic environment, it is useful to first comment on the emerging sources of economic growth in the global economy. Many (e.g., Baldwin and Martin, 1999, Sachs and Warner,

-450-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited page

Bookmark this page
The Political Economy of International Trade Law: Essays in Honor of Robert E. Hudec
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen
/ 696

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?