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GATT, Preferential/Regional Trading Blocs and Agricultural Trade

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  • McCalla, Alex F

Abstract

Agricultural trade impasses have again frustrated the GATT process. Interest in preferential/regional trading blocs is increasing. The paper probes the theoretical and empirical consequences of preferential arrangements instead of multilateral liberalization. It concludes that in a second-best world preferential arrangements could either improve or decrease global welfare. For agricultural trade, previous experience suggests that in regional groupings such as the EC trade diversion exceeded trade creation. This results from trade distorting domestic policies. Prospects for liberalization of agricultural trade under either GATT or preferential arrangements are limited. The consequences for small agricultural exporters are not positive. Copyright 1992 by Blackwell Publishing Ltd.

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  • McCalla, Alex F, 1992. "GATT, Preferential/Regional Trading Blocs and Agricultural Trade," Review of International Economics, Wiley Blackwell, vol. 1(1), pages 73-89, November.
    • Handle: RePEc:bla:reviec:v:1:y:1992:i:1:p:73-89
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    Cited by:

    1. Valdes, Alberto, 1995. "Joining an Existing Regional Trade Agreement: Issues and Policies from the Perspective of a Small Open Economy in Latin America," 1995: Economic Integration in the Western Hemisphere Symposium, June 7-9, 1995, San Jose, Costa Rica 50807, International Agricultural Trade Research Consortium.

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