This is one of two papers commissioned by the International Agricultural Trade Research Consortium on various aspects related to the agricultural sector of a prospective North American Free Trade Agreement. The companion paper to this one has been prepared by a working group chaired by Richard...

A review of recent research suggests that conventional trade models grossly underestimate the country and global gains from trade liberalization. They typically ignore potential sources of gains such as economies of scale; reduced costs of evasion, rent-seeking and lobbying; and X-efficiency...

We develop a three region - U.S., Mexico, and Rest-of-World - simulation model to analyze the effects on the agricultural sector of a potential preferential trading arrangement (PTA) between Mexico and the United States. The simulation exercises indicate that two-way agricultural trade increases...

The world's grain stocks are providing more world market stability than they did prior to 1978. Even though the volatility of world grain production increased since 1978, global consumption volatility declined. Grain production variability in the Soviet Union, United States, and Argentina appear...

Most agricultural export subsidies are targeted to specific countries. This paper demonstrates that in a standard general equilibrium model of international trade, a small targeted subsidy increase the welfare of the subsidizing country by exploiting differences in price responsiveness of demand...