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With the prospect of greater uncertainty in world markets, additional progress will be required tominimize the adverse effects of domestic support policies on international trade; otherwise, turbulent globaleconomic conditions will generate even greater uncertainty and instability in world commodity markets. To obtaingreater rattonalization of agricultural production and trade, improved empirical measures of the impacts ofalternative domestic support programmes on international trade in farm products are required. Previous studiesbased on rates of protection have not adequately identified the effects of protection. An alternative concept-therate of distortmn of world market prices-is developed in this paper to provide an improved measure of theimpact of agricultural policy measures and to provide a more meaningful basis for future trade negotiations. Thecase example of wheat 1s used to Illustrate the potential benefits of such a new concept. In order to identify abalanced reduction in the effects of protection on international markets, evaluating rates of distortion is preferableto analyzing the impacts of a proportional change in rates of protection undertaken by all countries.

Subject(s): Agricultural and Food Policy

International Relations/Trade

Issue Date: 1987

Publication Type: Conference Paper/ Presentation

PURL Identifier: http://purl.umn.edu/197436 Page range: 289-294

Total Pages: 6

Record appears in: International Association of Agricultural Economists (IAAE) > 1987 Occasional Paper Series No. 4





Autor: de Gorter, Harry ; McClatchy, Don ; Lohoar, James

Fuente: http://ageconsearch.umn.edu/record/197436?ln=en







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