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Bilateral Harmonization of EC and U.S. Agricultural Policies

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  • Mahe, L P
  • Tavera, C

Abstract

Unilateral and simultaneous EC and U.S. agricultural policy changes are simulated with an international trade model. They are carried out involving three steps: (1) grains and feeds, (2) beef and dairy products, and (3) sugar. Both cross effects and own effects are examined on typical policy targets. Results suggest that, while world prices are sometimes drastically altered, the magnitude of cross effects is small and sometimes ambiguous compared with own effects. Feed livestock linkages are dominant factors in the economic rationale behind the interactions between countries. The case for cooperation in this agricultural trade scenario is, however, supported by the evidence from at least a budget point of view. Copyright 1988 by Oxford University Press.

Suggested Citation

  • Mahe, L P & Tavera, C, 1988. "Bilateral Harmonization of EC and U.S. Agricultural Policies," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 15(4), pages 327-348.
  • Handle: RePEc:oup:erevae:v:15:y:1988:i:4:p:327-48
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    References listed on IDEAS

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    1. Aniss Bahrenian & S. Devadoss & William H. Meyers, 1986. "FAPRI Trade Model for Feed Grains: Specification, Estimation, and Validation," Center for Agricultural and Rural Development (CARD) Publications 86-sr1, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    2. Mahe, Louis P, 1984. "A Lower but More Balanced Protection for European Agriculture," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 11(2), pages 217-234.
    3. de Veer, Jan, 1984. "Cereal Substitutes, Fat Tax and Price Distortion," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 11(2), pages 169-176.
    4. William H. Meyers & Michael D. Helmar & S. Devadoss, 1986. "FAPRI Trade Model for the Soybean Sector: Specification, Estimation, and Validation," Food and Agricultural Policy Research Institute (FAPRI) Publications 86-sr2, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
    5. William H. Meyers & Michael D. Helmar & S. Devadoss, 1986. "FAPRI Trade Model for the Soybean Sector: Specification, Estimation, and Validation," Center for Agricultural and Rural Development (CARD) Publications 86-sr2, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    6. Runge, C. Ford & von Witzke, Harald & Thompson, Shelley, 1987. "Liberal Agricultural Trade As A Public Good: Free Trade Versus Free Riding Under Gatt," Staff Papers 13635, University of Minnesota, Department of Applied Economics.
    7. Aniss Bahrenian & S. Devadoss & William H. Meyers, 1986. "FAPRI Trade Model for Feed Grains: Specification, Estimation, and Validation," Food and Agricultural Policy Research Institute (FAPRI) Publications 86-sr1, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
    8. Honma, Masayoshi & Hayami, Yujiro, 1986. "Structure of agricultural protection in industrial countries," Journal of International Economics, Elsevier, vol. 20(1-2), pages 115-129, February.
    9. von Witzke, Harald & Houck, James P., 1987. "Economic Effects Of Possible European Community Market Intervention In Soybeans And Their Products," Staff Papers 14147, University of Minnesota, Department of Applied Economics.
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    Cited by:

    1. Francois Bonnieux & Louis Pascal Mahe & Pierre Rainelli, 1989. "La politique européenne des prix et les problèmes agricoles régionaux français," Post-Print hal-01594073, HAL.
    2. Herve Guyomard & Louis Pascal Mahe & Christophe Tavéra, 1990. "L'impact de la proposition américaine au GATT sur les agricultures de la CEE et des USA," Post-Print hal-01600927, HAL.
    3. Tongeren, Frank van & Meijl, Hans van & Surry, Yves, 2001. "Global models applied to agricultural and trade policies: a review and assessment," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 26(2), November.
    4. Mohtadi, Hamid & Roe, Terry L., 1992. "Endogenous Growth, Health and the Environment," Bulletins 7521, University of Minnesota, Economic Development Center.
    5. Johnson, Martin & Roe, Terry L. & Mahe, Louis Adrien Pascal, 1989. "The GATT Negotiations and US/EC Agricultural Policies Solutions to Noncooperative Games," Bulletins 7491, University of Minnesota, Economic Development Center.
    6. Hartmann, Monika & Schmitz, Peter Michael, 1992. "Impact of the EC's Rebalancing Strategy on Developing Countries: The Case of Feed," Occasional Paper Series No. 6 197733, International Association of Agricultural Economists.
    7. Herve Guyomard & Louis Pascal Mahe & Christophe Tavéra, 1990. "Agriculture in the GATT : a quantitative assessment of the US 1989 proposal," Post-Print hal-01601026, HAL.
    8. Mahe, Louis Adrien Pascal & Roe, Terry, 1992. "Political Economy Trade Negotiations: An Empirical Game Theory Analysis," Occasional Paper Series No. 6 197894, International Association of Agricultural Economists.
    9. Kennedy, P. Lynn, 1994. "Agricultural policy decisions in the Uruguay Round: a game-theoretic examination," Doctoral Dissertations 231930, University of Minnesota, Department of Applied Economics.
    10. Hervé Guyomard & Louis Mahé, 1993. "Théorie de la production en présence de rationnements avec applications. L'exemple des quotas laitiers dans la CEE," Revue Économique, Programme National Persée, vol. 44(1), pages 71-94.
    11. Hartmann, Monika & Schmitz, P. Michael, 1991. "Impact Of Ec'S Rebalancing Strategy On Developing Countries: The Case Of Feed," Staff Papers 14085, University of Minnesota, Department of Applied Economics.

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