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Bargaining For European Union Farm Policy Reform Through U.S. Pesticide Restrictions

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  • Martin, Lizbeth
  • Paarlberg, Philip L.
  • Lee, John G.

Abstract

Future trade negotiations will incorporate environmental concerns. This study presents a framework to evaluate whether the United States would be willing to adopt a pesticide restriction in exchange for European Union liberalization of producer support. It outlines the conditions that must be met if a bargain is to occur. Partial equilibrium commodity models test whether the conditions for a bargaining solution are satisfied. The research results indicate that a potential bargain is possible for stricter U.S. environmental regulations in coarse grains if there is a sufficiently large positive EU externality. Conditions in the oilseed market preclude a bargain.

Suggested Citation

  • Martin, Lizbeth & Paarlberg, Philip L. & Lee, John G., 1999. "Bargaining For European Union Farm Policy Reform Through U.S. Pesticide Restrictions," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 28(2), pages 1-10, October.
    • Handle: RePEc:ags:arerjl:31292
    DOI: 10.22004/ag.econ.31292
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    References listed on IDEAS

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    Agricultural and Food Policy;

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