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Chance Governs All: The Fragmented, Frustating State Of Agricultural Trade Policy In The United States

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  • Browne, William P.
  • Schweikhardt, David B.
  • Bonnen, James T.

Abstract

The U.S. agricultural policy process is marked by a proliferation of organized interests and rising transaction costs. These pose a barrier for countries negotiating with the United States on trade issues. This paper examines the causes of this proliferation of interests, the impact of this proliferation on trade policy decisions, and the consequences of these escalating transaction costs for countries negotiating with the United States. The results suggest that other countries must anticipate that the U.S. position in trade negotiations will be the result of an accommodation of conflicting interests and that any agreement will pass Congress only if it contains gains for U.S. export industries.

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File URL: http://purl.umn.edu/11769
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Bibliographic Info

Paper provided by Michigan State University, Department of Agricultural, Food, and Resource Economics in its series Staff Papers with number 11769.

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Date of creation: 2000
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Handle: RePEc:ags:midasp:11769

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Postal: Justin S. Morrill Hall of Agriculture, 446 West Circle Dr., Rm 202, East Lansing, MI 48824-1039
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Fax: (517) 432-1800
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Web page: http://www.aec.msu.edu/agecon/
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Keywords: International Relations/Trade;

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  1. David Orden, 1994. "Agricultural Interest Groups and the North American Free Trade Agreement," NBER Working Papers 4790, National Bureau of Economic Research, Inc.
  2. Deardorff, A.V. & Stern, R., 1997. "An Overview of the Modelling of the Choices and Consequences of U.S. Trade Policy," Working Papers 400, Research Seminar in International Economics, University of Michigan.
  3. Paul Krugman, 1991. "The move toward free trade zones," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 7-58.
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