Review of the dairy trade situation in 2004 and speculation on dairy trade issues in 2005. Includes U.S. dairy trade statistics for 2004 by product and commodity and a summary of current and pending international trade negotiations.

Previous studies on the role of FTAs in promoting members’ international trade have usually focused on FTA premium, ignoring the difference between selection effects – trade developments before the formation of FTAs – and “learning†effects – trade growth...