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

By Andrew Schmitz; Garth Coffin et al. | Go to book overview

Conclusion

Regardless of what happens in GATT and the new World Trade Organization, producers and governments will seek a tolerable degree of shelter from the instability that characterizes agriculture. While both Canada and the United States do not have to worry about food security since they produce in excess of their domestic needs, they do have to worry about trade security. That is they need sufficient stable supplies so that importing countries can safely rely on Canadian and US farmers as their supply sources. Without this level of security on the part of governments and peoples in other countries, the incentives for uneconomic self-sufficiency policies will prevail.

Will these US and Canadian producer and government needs be satisfied by marketing boards, trading blocs, storage programs, income assurance, price supports, income supports or some type of farmer savings program? Time will answer this question. Of all the options available, truly free trade could be the most improbable.


Notes
1.
Food and Fiber Letter 2, May 23, 1994. Sparks Commodities.
2.
In reality, the target price and deficiency payments do not apply to all acres. Farmers do not receive deficiency payments on 15% of their acres (flex acres) and may be required to set aside additional acreage.
3.
Sugar and peanuts are a close second and third.
4.
One might question why cooperatives raise no free trade issues while it was previously indicated that marketing boards may constitute trade barriers too. The answer lies in the voluntary nature of the cooperative form of business organization. At a minimum, farmers need voluntary forms of market intervention whereby they can offset the power position of multinational market intermediaries.

References

Carter, C. A. 1993. An Economic Analysis of a Single North American Barley Market. Agriculture Canada, Ottawa, Ontario, Canada.

Congressional Budget Office. 1993. A Budgetary and Economic Analysis of the NAFTA. US Congress, Washington, DC.

FAPRI. 1994. Implications of the Uruguay Round for Agriculture. Iowa State University, Ames, IA (June).

Goodloe, M., and M. Simone. 1992. A North American Free Trade Area for Agriculture. The Role of Canada and the US -- Canada Agreement. Agriculture Information Bulletin No. 644, ERS/USDA, Washington, DC.

Grennes, T. 1993. "Toward a More Open Agriculture in North America", in Steven Globerman and Michael Walker, eds., Assessing NAFTA: A Trilateral Analysis. The Frazer Institute, Vancouver, British Columbia, Canada.

Harvey, N. 1994. "Rebellion in Chiapas: Rural Reform, Champesino Radicalism and the Limits to Salinismo"

-35-

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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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