Through financial channels, agricultural protectionism imposes costs on efficient producers that are higher than those associated with negative allocative effects and export losses usually estimated. The link between protectionism and finance has a direct relationship with the WTO Marrakech Agreement of establishing coherence between international trade and financial matters. Here, I call attention to the fact that for efficient agricultural exporters there is little if any coherence between the trading system and the international financial system that they face. I also present some numbers on the export losses from agricultural protectionism; describe the channels through which this protectionism increases financial costs; and analyze dynamic and poverty effects.
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Find related papers by JEL classification: F3 - International Economics - - International Finance F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
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