Rice Trade Liberalization and Implications for U.S. Policy
The U.S. government's rice program treats rice as a homogeneous commodity, even though rice's two primary subspecies, indica and japonica, are differentiated commodities in world markets. Trade liberalization under the Uruguay round of GATT is expected to increase demand for japonica more than for indica. We develop a U.S. rice model which treats rice as a differentiated product. U.S. government programs are modeled and trade liberalization scenarios are analyzed under alternative policies. Compared to the current policy, a more flexible U.S. policy that treats rice as a differentiated commodity could result in both higher farm incomes and lower government expenditures after trade liberalization. Copyright 1996, Oxford University Press.
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Volume (Year): 78 (1996)
Issue (Month): 4 ()
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