IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Free Trade, Pesticide Regulation and NAFTA Harmonization

  • Freshwater, David
Registered author(s):

    Pesticides are an important farm input both in terms of cost and in terms of their impact on crop yields and quality. With freer trade in agricultural output, differences in cost of production, yield and quality can have a large effect on competitiveness. Thus there is an increased demand by farmers in Canada and the United States for harmonization of pesticide regulations, and in particular for the option to import registered pesticides for their own use. Under NAFTA the three national governments are moving to make pesticide regulation more uniform, but there are still significant differences in regulatory structure and these effectively preclude direct imports by farmers at this time. Moreover, while farmers believe they would as a group benefit from a single market this is unlikely to be the case. Under the current regulatory system pesticide companies have an incentive to practice price discrimination, which results in farmers with the most inelastic demand facing a higher price. In a single market one would expect prices to equalize, but at a price closest to the price prevailing in the larger-volume market. In addition if one market is relatively small it may no longer be profitable to serve it and those farmers could lose access to certain compounds, because there would be no domestic registration. Thus this paper argues that the welfare gains from introducing free trade in pesticides are more complex than have normally been assumed. In particular, regulators in Canada, Mexico and the United States should consider differences in market structure in their efforts to harmonize pesticide regulations.

    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: http://purl.umn.edu/23817
    Download Restriction: no

    Article provided by Estey Centre for Law and Economics in International Trade in its journal Estey Centre Journal of International Law and Trade Policy.

    Volume (Year): 04 (2003)
    Issue (Month): 1 ()
    Pages:

    as
    in new window

    Handle: RePEc:ags:ecjilt:23817
    Contact details of provider: Postal: Suite 820, 410 22nd Street East, Saskatoon SK, S7K 5T6
    Phone: (306) 244-4800
    Fax: (306) 244-7839
    Web page: http://www.esteycentre.com/
    Email:


    More information through EDIRC

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

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

    When requesting a correction, please mention this item's handle: RePEc:ags:ecjilt:23817. 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: (AgEcon Search)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.