In this paper, relationships between U.S. and Canadian wheat prices are examined using cointegration and error correction approach. The use of an error correction model is appropriate because U.S. and Canadian wheat prices are first differenced stationary and cointegrated. The results suggest...

The double-dividend debate evolves around the possibility (or not) of substituting environmental taxes for more distortionary taxes to reduce both pollution degradation and/or damages (the first dividend) and the excess burden of existing taxes (the second dividend), without eroding tax...

We build a partial-equilibrium, two-country model to analyze some implications of the introduction of genetically modified (GM) products. In the model, innovators hold proprietary rights on the new technology, whereas farmers are (competitive) adopters; some consumers deem food produced from GM...

The common treatment of a separate import demand specification in the literature is usually motivated by product differentiation. Most studies, however, proceed further with a separability assumption between domestic and imported product for data consideration and ease in estimation. In this...

We analyze the potential impact of continuing the existing U.S. sugar program, replacing it with a standard program, and implementing the standard program with multilateral trade liberalization. Under the North American Free Trade Agreement (NAFTA), duty-free sugar imports from Mexico will...

Studies on the General Agreement on Tariffs and Trade (GATT) are abundant in the literature. But most researchers have examined GATT’s impact on economic activities with scant or no attention given to its impact on institutions such as market integration and efficiency. To the latter issues,...

This paper provides a formal analysis of the welfare and trade implications of eco-labeling schemes. A simple model of vertical (quality) differentiation captures major stylized features of the textiles market in which trading takes place between an industrialized North (domestic) and a...

Imports are increasingly becoming a significant source of Japan's pork supply. Japan's share of imports to total consumption increased from 9 percent in 1980 to 24 percent in 1990, reaching a maximum of 44 percent in 1996. Under the World Trade Organization (WTO) safeguard provisions for pork,...

The next three-year World Trade Organization round has been set in motion by recent negotiations in Doha, Qatar. Among the most contentious issues in that meeting, and probably over the course of the next round, is direct and indirect producer support for agricultural exporters in the North and...

Senator Chambliss asked FAPRI to analyze the latest U.S. proposal for WTO agriculture negotiations. This proposal includes changes in export competition, market access, and domestic support. The analysis covers the first seven years of policy changes implied by the proposal, during which the...