Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Political Economy of U.S. Export Subsidies for Wheat


Author Info

  • Bruce L. Gardner


During 1985-93 the U.S. Government provided $4.9 billion in subsidies to targeted foreign buyers of U.S. wheat under its Export Enhancement Program (EEP). The subsidies averaged $31 per metric ton, or about 25 percent of the U.S. price. The EEP generates a small gain to U.S. farmers, compared to its costs. Lacking a clear economic justification, the debate on the EEP indicates the following were the key factors in its political success: farmers and agribusiness have been unified in support of the program, and have excellent political channels through which to express their views; domestic users of wheat have not opposed the program; and the program received an initial boost because of its use of large government-owned wheat stocks, allowing it to be treated as budget neutral in Congress. An economic argument that carried political weight was that the EEP, by increasing the costs of the European Community's wheat export subsidies, would encourage them to negotiate joint U.S./EC subsidy reductions. In fact, the EC in 1993 did agree to multilateral subsidy reductions in the GATT, as well as reforming their own policies unilaterally. But it remains questionable whether this outcome justifies the EEP.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL:
Download Restriction: no

Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 4747.

as in new window
Date of creation: May 1994
Date of revision:
Publication status: published as The Political Economy of American Trade Policy, Anne O. Krueger, ed.pp. 291-331, (University of Chicago Press, 1996).
Handle: RePEc:nbr:nberwo:4747

Note: ITI
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Phone: 617-868-3900
Web page:
More information through EDIRC

Related research


Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:


No references listed on IDEAS
You can help add them by filling out this form.


Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Gardner, Bruce L., 2008. "Distortions to Agricultural Incentives in the United States and Canada," Agricultural Distortions Working Paper 48573, World Bank.
  2. Gawande, Kishore, 2005. "The structure of lobbying and protection in U.S. agriculture," Policy Research Working Paper Series 3722, The World Bank.
  3. Sumner, Daniel A., 1995. "Farm Programs And Related Policy In The United States," Understanding Canada\United States Grain Disputes; Proceedings of the 1st Canada\U.S. Agricultural and Food Policy Systems Information Workshop - 1995 16742, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.


This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:4747. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.