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State Trading Versus Export Subsidies: The Case Of Canadian Wheat

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  • Alston, Julian M.
  • Gray, Richard S.

Abstract

Canada and the United States have used different trade policies to support their wheat industries. Canada conferred sole export powers to the Canadian Wheat Board, allowing it to price discriminate among markets. The U.S. government has funded transfers to its wheat producers from taxpayers, instead, through export subsidies. This study compares these two ways of supporting producers in terms of their transfer efficiency and overall deadweight losses, the incidence on different domestic interest groups, and their consequences for third party traders. In the analysis we consider the implications of market power of wheat marketing firms for the comparison of policy alternatives in the context of the Canadian wheat industry.

Suggested Citation

  • Alston, Julian M. & Gray, Richard S., 2000. "State Trading Versus Export Subsidies: The Case Of Canadian Wheat," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(1), pages 1-17, July.
    • Handle: RePEc:ags:jlaare:30834
    DOI: 10.22004/ag.econ.30834
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    References listed on IDEAS

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    1. Schmitz, Andrew & Furtan, William Hartley & Baylis, Katherine R., 1999. "State Trading and the Upcoming WTO Discussions," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 14(2), pages 1-4.
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    3. Colin A. Carter & R.M.A. Loyns & Derek Berwald, 1998. "Domestic Costs of Statutory Marketing Authorities: The Case of the Canadian Wheat Board," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 313-324.
    4. Scoppola, Margherita, 1995. "Multinationals and agricultural policy in the EC and USA," Food Policy, Elsevier, vol. 20(1), pages 11-25, February.
    5. Ackerman, Karen Z. & Smith, Mark & Suarez, Nydia R., 1995. "Agricultural Export Programs: Background for 1995 Farm Legislation," Agricultural Economic Reports 262013, United States Department of Agriculture, Economic Research Service.
    6. Bruce Gardner, 1983. "Efficient Redistribution through Commodity Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(2), pages 225-234.
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    Cited by:

    1. Fengxia Dong & Thomas L. Marsh & Kyle W. Stiegert, 2006. "State Trading Enterprises in a Differentiated Product Environment: The Case of Global Malting Barley Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(1), pages 90-103.
    2. Bourgeon, Jean-Marc & Jean, Sebastien & Maillet, Anais, 2015. "State Trading Enterprises and Price Stabilization," 2015 Conference, August 9-14, 2015, Milan, Italy 211367, International Association of Agricultural Economists.
    3. Colin A. Carter & Shon M. Ferguson, 2020. "State trading deregulation and prairie durum wheat production," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 68(1), pages 107-116, March.
    4. Schmitz, Troy G. & Gray, Richard S., 2000. "State Trading Enterprises And Revenue Gains From Market Power: The Case Of Barley Marketing And The Canadian Wheat Board," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(2), pages 1-20, December.
    5. Stephen Schmidt, 2001. "Incentive Effects of Expanding Federal Mass Transit Formula Grants," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 20(2), pages 239-261.
    6. Paulus, Moritz & Trueby, Johannes & Growitsch, Christian, 2011. "Nations as Strategic Players in Global Commodity Markets: Evidence from World Coal Trade," EWI Working Papers 2011-4, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    7. McCorriston, Steve & MacLaren, Donald, 2007. "Do state trading exporters distort trade?," European Economic Review, Elsevier, vol. 51(1), pages 225-246, January.
    8. Maeda, Koushi & Suzuki, Nobuhiro & Kaiser, Harry M., 2001. "Measuring the Effects of Eliminating State Trading Enterprises on the World Wheat Sector," Working Papers 127664, Cornell University, Department of Applied Economics and Management.
    9. Alston, Julian M. & Gray, Richard S. & Sumner, Daniel A., 2001. "Wheat Disputes Under Nafta," Proceedings of the 6th Agricultural and Food Policy Systems Information Workshop, 2000: Trade Liberalization Under NAFTA: Report Card on Agriculture 16842, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.

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