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

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

production controls is the reduction of government costs and the level of antagonism among traders in the world market for dairy products even though smaller farm preservation is undoubtedly also a factor. In the United States, the pressure for controls results from a combination of the desire to lower government costs, raise milk prices and preserve a moderately sized, dairy farm structure. The lack of consensus is the result of diversity and regionalism that is developing within the US dairy industry. Both Republican and Democratic administrations are opposed to production controls because they run counter to freer trade objectives and reduce competitiveness.

This discussion also raises important issues regarding the role of producer-oriented institutions in an economic environment of freer trade. The answer is quite simple. Under conditions of free trade, producer-oriented institutions, such as cooperatives or marketing boards, should do whatever is required to keep farmers competitive in the marketplace. This involves promoting progressiveness in both production and marketing. It begins with support of progressive, basic and applied research at universities. It includes facilitating the transfer of technology to farmers as a means of leveling the playing field. It involves providing milk processors with services (such as forage quality testing, soil testing and cow milker training), product development, minimum quality standards and aggressiveness in exporting as well as in domestic marketing. It is only through such progressive institutions that an industry expects to remain competitive. This is the case regardless of which long-run policy scenario is pursued.


References

Cropp, R. 1995. "The California Milk Price Stabilization Program". Dairy Markets and Policy: Issues and Options O-10. Cornell University, Department of Agricultural Economics, Ithaca, NY.

Fallert, R. F., D. P. Blayney, and J. J. Miller. 1990. Dairy: Background for 1990 Farm Legislation. Commodity Economics Division, ERS/USDA (March).

GAO/RCED. 1993. Dairy Industry Potential for and Barriers to Market Development 94-19. Washington, DC (December).

Gruebele, J. W. 1978. "Effects of Removing the Dairy Price-Support Program". Illinois Agricultural Economics 18: 30-38.

Kaiser, H. M. 1986. Mandatory Supply Management Programs in Canada and Europe. Cornell Agricultural Economics Staff Paper No. 86-21, Cornell University, Department of Agricultural Economics, Ithaca, NY.

Knutson, R. D., J. B. Penn, and W. T. Boehm. 1995. Agricultural and Food Policy. 3rd ed. Englewood Cliffs, NJ: Prentice-Hall, Inc.

Manchester, A. 1983. The Public Role in the Dairy Economy: Why and How Governments Intervene in the Milk Business. Boulder, CO: Westview Press.

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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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