Selected Trade Agreements and Implications for U.S. Agriculture
Since 2001, the United States has concluded negotiations with 13 countries, resulting in 8 trade agreements (TAs). Three additional agreements have been negotiated but not yet ratified by Congress, as of March 2011. Other countries have become increasingly active in negotiating their own trade pacts. This proliferation of TAs between key U.S. trading partners and competitors may have raised concerns among U.S. exporters, whose share in established markets could be eroded by such deals. In this study, ERS examines how recently concluded TAs between ASEAN (Southeast Asia) countries and China and Australia/New Zealand, as well as pending TAs between the United States and Korea, Colombia, and Panama, will likely affect U.S. agricultural trade. Model results suggest that TAs between ASEAN countries and China and ASEAN countries and Australia/New Zealand would result in moderate losses to U.S. agricultural exports of about $350 million to those countries, but losses would be partially offset by gains in other markets. U.S. agricultural exports to Korea would expand by an estimated $1.9 billion per year if the U.S. TA with Korea were implemented. The U.S.-Colombia TA would result in an estimated $370 million in additional U.S. exports per year. U.S. exports would realize smaller gains of about $50 million per year under the pact with Panama. Empirical results confirm theoretical findings that trade created under TAs exceeds trade diverted, but that results depend on the specific circumstances of each agreement.
|Date of creation:||Apr 2011|
|Date of revision:|
|Contact details of provider:|| Postal: 1400 Independence Ave.,SW, Mail Stop 1800, Washington, DC 20250-1800|
Web page: http://www.ers.usda.gov/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Caroline Freund & Emanuel Ornelas, 2010.
"Regional Trade Agreements,"
Annual Review of Economics,
Annual Reviews, vol. 2(1), pages 139-166, 09.
- Caroline Freund & Emanuel Ornelas, 2009. "Regional Trade Agreements," CEP Discussion Papers dp0961, Centre for Economic Performance, LSE.
- Freund, Caroline & Ornelas, Emanuel, 2010. "Regional trade agreements," Policy Research Working Paper Series 5314, The World Bank.
- Caroline Freund & Emanuel Ornelas, 2009. "Regional trade agreements," LSE Research Online Documents on Economics 28697, London School of Economics and Political Science, LSE Library.
- Francois, Joseph & Bradley McDonald, 1996. "Liberalization and Capital Accumulation in the GTAP Model," GTAP Technical Papers 310, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
- Jacinto F. Fabiosa & Dermot J. Hayes & Fengxia Dong, 2007.
"Impact of the South Korea-U.S. Free Trade Agreement on the U.S. Livestock Sector,"
Center for Agricultural and Rural Development (CARD) Publications
07-wp455, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Jacinto F. Fabiosa & Dermot J. Hayes & Fengxia Dong, 2007. "Impact of the South Korea-U.S. Free Trade Agreement on the U.S. Livestock Sector," Food and Agricultural Policy Research Institute (FAPRI) Publications 07-wp455, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
- Burfisher, Mary E. & Zahniser, Steven, 2003. "Multilateralism and Regionalism: Dual Strategies for Trade Reform," Amber Waves, United States Department of Agriculture, Economic Research Service, September.
- Yinhua Mai & Philip Adams & Mingtai Fan & Ronglin Li & Zhaoyang Zheng, 2005. "Modelling the Potential Benefits of an Australia-China free Trade Agreement," Centre of Policy Studies/IMPACT Centre Working Papers g-153, Victoria University, Centre of Policy Studies/IMPACT Centre.
- Joseph Francois & Hanna Norberg & Miriam Manchin & Annette Pelkmans Balaoing, 2009. "Trade Impact Assessment (Trade SIA) of an EU-ASEAN Free Trade Agreement," IIDE Discussion Papers 20090801, Institue for International and Development Economics.
When requesting a correction, please mention this item's handle: RePEc:ags:uersrr:102754. 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 references are entirely missing, you can add them using this form.