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Rice Trade Liberalization and Implications for U.S. Policy


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  • JooHo Song
  • Colin A. Carter


The U.S. government's rice program treats rice as a homogeneous commodity, even though rice's two primary subspecies, indica and japonica, are differentiated commodities in world markets. Trade liberalization under the Uruguay round of GATT is expected to increase demand for japonica more than for indica. We develop a U.S. rice model which treats rice as a differentiated product. U.S. government programs are modeled and trade liberalization scenarios are analyzed under alternative policies. Compared to the current policy, a more flexible U.S. policy that treats rice as a differentiated commodity could result in both higher farm incomes and lower government expenditures after trade liberalization. Copyright 1996, Oxford University Press.

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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 78 (1996)
Issue (Month): 4 ()
Pages: 891-905

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Handle: RePEc:oup:ajagec:v:78:y:1996:i:4:p:891-905

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Cited by:
  1. Fabiosa, Jacinto F., 2000. "Impact Of Gatt In The Functioning Of Agricultural Markets: An Examination Of Market Integration And Efficiency In The World Beef And Wheat Market Under The Pre-Gatt And Post-Gatt Regimes," 2000 Annual meeting, July 30-August 2, Tampa, FL 21868, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Wailes, Eric J. & Chavez, Eddie C., 2010. "Updated Arkansas Global Rice Model," Staff Papers 94347, University of Arkansas, Department of Agricultural Economics and Agribusiness.
  3. Wailes, Eric J. & Chavez, Eddie C., 2011. "2011 Updated Arkansas Global Rice Model," Staff Papers 102650, University of Arkansas, Department of Agricultural Economics and Agribusiness.
  4. Anthony D. Becker & Rebecca P. Judge, 2012. "Measuring the Effects of Decoupled Payments on Indica Rice Production Under the 1996 and 2002 Farm Bills," Working Papers 201201, St. Olaf College, Department of Economics.
  5. Chi-Chung Chen & Bruce McCarl & Ching-Cheng Chang, 2012. "Climate change, sea level rise and rice: global market implications," Climatic Change, Springer, vol. 110(3), pages 543-560, February.
  6. No, Sung Chul & Zapata, Hector O., 2001. "A Dynamic Response Analysis For The U.S. Rough Rice Market," 2001 Annual meeting, August 5-8, Chicago, IL 20765, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  7. Keeney, Roman & Beckman, Jayson, 2009. "WTO negotiations on agriculture and the distributional impacts for US rice farm households," Food Policy, Elsevier, vol. 34(1), pages 70-80, February.


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