Agricultural Trade Policies in the New Millennium

Transcription

1 Agricultural Trade Policies in the New Millennium P. Lynn Kennedy, PhD Won W. Koo, PhD Editors Food Products Press An Imprint of The Haworth Press, Inc. New York London Oxford

2 CONTENTS About the Editors Contributors Preface xii xiii xvii Chapter 1. Issues and Obstacles for Agricultural Trade Policy in the New Millennium 1 P. Lynn Kennedy Won W. Koo Issues and Perspectives for Future Trade Agreements 2 Scope of This Volume 5 PART I: KEY ISSUES INFLUENCING AGRICULTURAL TRADE NEGOTIATIONS Chapter 2. Progress in Agricultural Trade Negotiations 9 Andrew Schmitz Introduction 9 Policy Harmonization and Side Agreements 9 State Trading Enterprises (STEs) and the WTO 13 Keeping the Borders Open 14 The Green Box 15 R&D and Trade 23 Multinationals and Vertical Market Structures 26 Gainers and Losers 27 Future Directions 29 Conclusion 31 Chapter 3. Issues in the WTO Agricultural Negotiations: An Overview 35 Tim Josling Introduction 35 Building on the Uruguay Round 36 The Agenda for the Agricultural Negotiations 37 Market Access 38

3 TRQ Expansion 40 Curbing Export Subsidies 41 Domestic Support 45 Health, Safety, and Environmental Issues 47 The Timing of the Negotiations 50 Chapter 4. Obstacles to Progress in Multilateral Agricultural Trade Negotiations: The European Viewpoint 55 David Blandford EU Agricultural Policy Prior to the Uruguay Round Negotiations 56 EU Policy and the Uruguay Round Agreement 57 EU Perspectives on Future Agricultural Policy 61 Implications for the Trade Negotiations 64 Conclusion 66 Chapter 5. One Perspective on U.S. Policy and Agricultural Progress in World Trade Organization Negotiations 71 Daniel A. Sumner General Obstacles to Progress in Current WTO Negotiations in Agriculture 72 The Negotiating Position of the United States and Progress in the Current WTO Round 76 Trade and Agricultural Policies of the United States As Obstacles to Progress in the Current WTO Round 80 Concluding Remarks 85 Chapter 6. Agricultural Negotiations in the Context of a Broader Round: A Developing Country Perspective 89 Thomas W. Hertel Bernard M. Hoekman Will Martin Agricultural Liberalization 90 Industrial Tariffs 93 Services 97 Industrial, Investment, and Export Development Policies 100 Achieving Balance: Rule Making and Implementation 102 Labor, Environmental, and Related Standards Issues 104 Developing Country Participation 106 Concluding Remarks 107

4 Chapter 7. Agricultural Trade Liberalization and the Environment: Issues and Policies 113 Wesley Nimon Utpal Vasavada Introduction 113 The Impact of Trade Liberalization on the Environment 114 The Positions of Fourteen Major Environmental NGOs 119 Countries' Agricultural Negotiating Positions with Environmental Implications 124 Relationship Between Fourteen Environmental NGOs and Countries' WTO Proposals 130 The Multifunctionality of Agriculture and Production-Linked Supports 131 Conclusion 133 PART II: COMMODITY TRADE ISSUES Chapter 8. Trade Liberalization in Rice 141 Eric J. Wailes Progress in Rice Trade Liberalization 144 Issues for Rice in the Current WTO Round 149 Chapter 9. Major Issues in the U.S. Sugar Industry Under 2000 WTO Negotiations and NAFTA 155 Won W. Koo P. Lynn Kennedy Introduction 155 Overview of the World Sugar Industry 156 The U.S. Sugar Program and Policies 159 Sugar and Sweetener Trade under NAFTA 162 Foreign Sugar Policies and Practices 166 Major Issues in the U.S. Sugar Industry 167 Concluding Remarks 174 Chapter 10. Major Issues for the U.S. Wheat Industry: The Implications of China's Entry into the WTO 177 Won W. Koo Introduction 177 World Wheat Industry 178

5 Trade Agreements and Policies 182 Major Issues in the 2000 Round of WTO Negotiations 186 The Impacts of China's WTO Entry on the World and U.S. Wheat Industries 188 Results 191 Conclusion 195 Chapter 11. New WTO Agricultural Trade Negotiations: Issues for the U.S. Coarse Grain Market 197 Linwood Hoffman Erik Dohlman Introduction Global Coarse Grain Trade Accomplishments of the Uruguay Round and Issues for New Agricultural Negotiations Continuing Issues Other Issues Conclusion Chapter 12. The World Trade Organization and Southern Agriculture: The Cotton Perspective 215 Darren Hudson The Current Cotton Situation 216 The WTO and Cotton 218 Conclusion 222 PART III: MULTILATERAL TRADE NEGOTIATIONS: ISSUES AND CONCERNS Chapter 13. The Impacts of Export Subsidy Reduction Commitments in the Agreement on Agriculture and International Trade: A General Assessment 227 Lilian Ruiz Harry de Gorter Introduction 227 The Economics of Volume versus Value Commitments on Export Subsidies 229 Final Considerations and Conclusion 242

6 Chapter 14. Agricultural Trade Liberalization Beyond Uruguay: U.S. Options and Interests 245 John Gilbert Thomas Wahl Introduction 245 Methodology 246 Unfinished Business 250 China and the WTO 252 Regional Alternatives 254 Concluding Comments 256 Chapter 15. Regional versus Multilateral Trade Arrangements: Which Way Should the Western Hemisphere Go on Trade? 259 Karen M. Huff James Rude Introduction 259 The Free Trade Area of the Americas 260 The Prospects for a New Multilateral Trade Agreement 261 The Modeling Framework 261 Results 264 Conclusion and Policy Recommendations 268 Chapter 16. Regionalism and Trade Creation: The Case of NAFTA 273 Dragan Miljkovic Rodney Paul Introduction 273 Determination of the Break Period: Method 275 What Happened to Trade Creation? 278 Regionalism, Regionalization, and NAFTA: Concluding Remarks 282 Chapter 17. Increased Use of Antidumping Weakens Global Trade Liberalization 287 Anita Regmi Introduction 287 What Is Dumping? 288

7 Use of Antidumping by Countries 289 Examination of the Current AD Law 295 Agriculture and Antidumping 296 Potential Impacts on Future Agricultural Trade 299 Chapter 18. Implementation of the SPS Agreement 305 Suzanne D. Thornsbury Tara M. Minton Institutional Changes 306 Standard-Setting Procedures 310 Issues for the Next Round 313 Conclusion 316 Chapter 19. Modeling Impacts of the Macroeconomic and Political Environment on Long-Term Prospects for Agricultural World Markets 321 Martin von Lampe Intrqduction 321 Brief Overview of Other Agricultural Market Models 322 Outline of the WATSIM Modeling System 324 Model Results: Prospects and Sensitivity of Agricultural World Markets 331 Further Developments 337 Summary and Conclusion 337 Chapter 20. Price Volatility: A Bitter Pill of Trade Liberalization in Agriculture? 341 Robert D. Weaver William C. Natcher Introduction Approach Empirical Results: The History of Price Volatility and Evidence of Change Conclusion

8 Chapter 21. Challenges and Prospects for Agricultural Trade Policy in the New Millennium 357 P. Lynn Kennedy Won W. Koo Challenges for Agricultural Trade Policy 357 Prospects for Agricultural Trade Policy 359 Index 361