Regulation and Protectionism under GATT: Case Studies in North American Agriculture

By Andrew Schmitz; Garth Coffin et al. | Go to book overview
producer surplus in 1999 and 2000 would actually be dissipated through competition among growers for the increased revenues associated with selling their additionals for the quota support price. The present analysis assumes that the quota level is not increased when demand shifts to the right of De0 in Figure 11.3.
14.
In Figure 11.3, it can be seen that an increase in the foreign price increases domestic producer surplus by a trapezoid-shaped area bounded by the level of quota, the old and new foreign prices and the domestic supply. The estimate in the text of the increased producer surplus from an increased foreign price would be exact if the domestic supply were vertical. The actual increase in producer surplus increases with the elasticity of the domestic supply.
15.
The extent of the future growth in imports of Mexican peanuts is highly uncertain. Recent statements by US industry leaders indicate plans by US processors to set up operations in Mexico to take advantage of lower peanut prices ( Orlando Sentinel, 1995).
16.
The following comments presume that growers and quota owners are not separate groups.

References

Hollis, P. 1994. "Global Market is Key to Farm Income". Southeast Farm Press 21( 4):16.

Nail, C. 1994. "Solution Sought to Limit Imports". Peanut Farmer 30( 3): 12.

Orden, D. 1994. Agricultural Interest Group Efforts to Affect the Congressional NAFTA Debate, in G. W. Williams, and T. Grennes, eds., NAFTA and Agriculture: Will the Experiment Work? Papers presented December 12-13, 1993, to the International Trade Research Consortium Conference, San Diego, CA.

Orlando Sentinel. 1995. "Rising peanut prices driving up imports". Orlando, FL (25 February).

Rucker, R. R., and W. N. Thurman. 1990. "The Economic Effects of Supply Controls: The Simple Analytics of the US Peanut Program". Journal of Law and Economics 33: 483-515.

USDA. Various issues, 1987-92. Oil Crops Situation and Outlook. ERS/USDA, Washington, DC.

____ . 1994. Effects of the Uruguay Round Agreement on US Agricultural Commodities. ERS/USDA, Washington, DC (March).

____. 1994. Foreign Agricultural Service. Agricultural Provisions of the Uruguay Round. FAS/USDA, Washington, DC (January).

US 0nternational Trade Commission. 1993. The Economic Effects of Significant US Imports Restraints. Publication No. 2699, Washington, DC (November).

Williams, J. C., and B. D. Wright. 1991. Storage and Commodity Markets. Cambridge, MA: Cambridge University Press.

-179-

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Regulation and Protectionism under GATT: Case Studies in North American Agriculture
Table of contents

Table of contents

  • Title Page iii
  • Contents v
  • Acknowledgments vii
  • About the Editors and Contributors ix
  • Section One - Overview of the Effects of Gatt 1
  • 1 - Itroduction: Trade and Regulations in Transition 3
  • References 18
  • 2 - Post-Gatt Assessment of the World Marketplace 20
  • Notes 35
  • 3 - Consequences of Tariffication 37
  • References 50
  • 4 - Supply Management Under Minimum Import Access Requirements 51
  • Notes 62
  • References 62
  • 5 - Imports into Canada: Why Have They Remained Low? 64
  • Notes 76
  • References 77
  • Section Two - Case Studies of Gatt's Effects 79
  • 6 - Regulation -- the Us Dairy Industry 81
  • References 94
  • 7 - Cost Competitiveness in the Canadian and Us Dairy Industries 96
  • Notes 115
  • References 116
  • 8 - Supply Management and Vertical Coordination: the Role of Cooperatives 118
  • Notes 126
  • References 127
  • 9 - Value-Added Economic Potential 128
  • Notes 145
  • References 146
  • 10 - Tobacco Supply Management: Examples from the United States and Australia 147
  • References 158
  • 11 - Gatt and the Us Peanut Market 160
  • Notes 178
  • References 179
  • 12 - The Us Sugar Industry: the Free Trade Debate 180
  • Notes 199
  • References 201
  • Section Three - Regulation and Supply Management 203
  • 13 - Supply Management Canadian Style 205
  • Notes 221
  • References 223
  • 14 - Power Relationships in the Political Process 226
  • Notes 241
  • References 244
  • 15 - Provincialism: Problems for the Regulators and the Regulated 245
  • References 267
  • 16 - Provmcial Versus Centralized Pricing: Protectionism and Institutional Design 269
  • References 283
  • 17 - Venturing into the Political Market 284
  • Notes 296
  • 18 - Vertical and Horizontal Coordination 299
  • Notes 312
  • References 313
  • 19 - Will the Supply Management Cartel Stand? 314
  • Notes 330
  • References 330
  • About the Book 332
  • Index 333
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