This document is the technical annex to the full paper “The Complexities of the Interface between Agricultural Policy and Trade†which is available separately.

Tariff and non-tariff barriers are widespread as applied to agricultural trade. The theory of gains from trade considers the impacts of free trade relative to no trade and to non-tariff barriers, while the theory of agricultural policy generally places little weight on the international trading...

Movements in countries’ exchange rates can substantially change the prices of goods faced by producers and consumers and thereby affect incentives to produce, consume, and trade goods. Exchange rate changes, however, might not be completely transmitted (passed through) to domestic prices....