Agricultural Trade: Determining Government Support Under the U.S.-Canada Free Trade Agreement

Abstract

The formula used in the Free Trade Agreement does not directly measure trade distortion caused by government subsides; rather, it measures the percentage of producer income that results from government support. It expresses the level of government support as a ratio of government agriculture subsides to producer income. Therefore, this method has limited ability to directly measure trade distortion caused by government support. Despite this limitation, it is valuable for trade negotiations because of its relative simplicity and acceptability among trading parties. In addition, it estimates the effects government subsides have on producer income, and the information used in the formula is relatively easy to obtain

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Document Details

Document Type
Technical Report
Publication Date
Feb 01, 1991
Accession Number
ADA270235

Entities

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Ground and Sea Platforms

DTIC Thesaurus Topics

  • Acceptability
  • Agreements
  • Agriculture
  • Commerce
  • Commodities
  • Distortion
  • Domestic
  • Economic Analysis
  • Economic Development
  • Governments
  • Industrialized Nations
  • Inland Waterways
  • International Organizations
  • Living Standards
  • Negotiations
  • Production
  • United States

Readers

  • Economics
  • International Relations and European Studies
  • Regression Analysis.