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US Trade Aid Payments and the WTO

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  • Joseph W. Glauber

Abstract

The trade wars initiated by the Trump Administration in 2018 had an adverse effect on US agriculture. Countertariffs imposed by US trading partners had significant effects on US commodity exports, particularly soybeans, and lowered crop and livestock receipts. To shore up political support from farmers, the Trump administration authorized an estimated total of $28 billion to farmers and ranchers in compensation for export losses. While those payments will help the sector in the short term, the aid payments could well prolong problems for the sector beyond 2020 by exacerbating trade tensions and precipitating future WTO disputes.

Suggested Citation

  • Joseph W. Glauber, 2021. "US Trade Aid Payments and the WTO," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(2), pages 586-603, June.
    • Handle: RePEc:wly:apecpp:v:43:y:2021:i:2:p:586-603
    DOI: 10.1002/aepp.13109
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    References listed on IDEAS

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    1. Joseph P. Janzen & Nathan P. Hendricks, 2020. "Are Farmers Made Whole by Trade Aid?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(2), pages 205-226, June.
    2. Joseph W. Glauber & Patrick Westhoff, 2015. "The 2014 Farm Bill and the WTO," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(5), pages 1287-1297.
    3. Orden,David & Blandford,David & Josling,Tim (ed.), 2011. "WTO Disciplines on Agricultural Support," Cambridge Books, Cambridge University Press, number 9781107005440.
    4. Edward J. Balistreri & Wendong Zhang & John Beghin, 2020. "The State-level Burden of the Trade War: Interactions between the Market Facilitation Program and Tariffs," Center for Agricultural and Rural Development (CARD) Publications apr-winter-2020-1, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    5. Glauber, Joseph W., 2015. "Agricultural insurance and the World Trade Organization:," IFPRI discussion papers 1473, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Hendricks, Nathan P. & Murphy, Ashling M. & Morgan, Stephen & Padilla, Samantha & Key, Nigel, 2023. "Explaining the Source of Racial Disparities in Market Facilitation Program (MFP) Payments," 2023 Annual Meeting, July 23-25, Washington D.C. 337402, Agricultural and Applied Economics Association.
    2. Ridley, William & Devadoss, Stephen, . "Determinants of Policy Responses in the US–China Tit-for-Tat Trade War," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 49(2).
    3. Joseph Glauber & Vince Smith, 2021. "Trends in US Agricultural Policy since 2000 and Implications for the Next Twenty Years," EuroChoices, The Agricultural Economics Society, vol. 20(2), pages 58-63, August.

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