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
Document Details
- Document Type
- Technical Report
- Publication Date
- Feb 01, 1991
- Accession Number
- ADA270235
Entities
Organizations
- United States Government Accountability Office