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Bilateralism in Agriculture when Countries use Distorting Domestic Policies

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  • May, Daniel E.

Abstract

A recent theoretical research proved that countries always have an incentive to deviate from global free trade when international markets are oligopolistic and when governments are politically biased. This result suggests that global free trade in agriculture (GFTA) cannot be reached as political bias and market power have both been identified. According to May (2011), bilateral agreements could eventually be used as alternative political tools to reach GFTA. This article extends the work of this author to determine whether bilateralism could also lead to GFTA in a realistic world where governments use distorting domestic policies to protect their agricultural sector.

Suggested Citation

  • May, Daniel E., 2011. "Bilateralism in Agriculture when Countries use Distorting Domestic Policies," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114657, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae11:114657
    DOI: 10.22004/ag.econ.114657
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    References listed on IDEAS

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    1. Reimer, Jeffrey J. & Stiegert, Kyle W., 2006. "Evidence on Imperfect Competition and Strategic Trade Theory," Staff Paper Series 498, University of Wisconsin, Agricultural and Applied Economics.
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    3. Daniel May, 2011. "Agricultural trade liberalization under bilateralism: an international network perspective," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 10(1), pages 23-34, April.
    4. Sanjeev Goyal & Sumit Joshi, 2006. "Bilateralism And Free Trade," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(3), pages 749-778, August.
    5. Stephen Devadoss, 2006. "Why do developing countries resist global trade agreements?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 15(2), pages 191-208.
    6. Daniel E. May, 2008. "Is Bilateralism Consistent with Global Free Trade?," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 7(2), pages 137-152, August.
    7. Brent Hueth & Philippe Marcoul, 2006. "Information Sharing and Oligopoly in Agricultural Markets: The Role of the Cooperative Bargaining Association," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 866-881.
    8. Reimer Jeffrey J & Stiegert Kyle, 2006. "Imperfect Competition and Strategic Trade Theory: Evidence for International Food and Agricultural Markets," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 4(1), pages 1-27, September.
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