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© 1988 Oxford University Press and the Foundation for the European Review of Agricultural Economics

research-article

Bilateral Harmonization of EC and U.S. Agricultural Policies

LP. MAHÉ and C. TAVÉRA

Institut National de la Recherche Agronomique Rennes, France

Summary

Unilateral and simultaneous EC and U.S. agricultural policy changes are simulated with an international trade model. They are carried out involving three steps: (1) grains and feeds, (2) beef and dairy products, and (3) sugar. Both cross effects and own effects are examined on typical policy targets. Results suggest that while world prices are sometimes drastically altered, the magnitude of cross effects is small and sometimes ambiguous compared with own effects. Feed livestock linkages are dominant factors in the economic rationale behind the interactions between countries. The case for cooperation in this agricultural trade scenario is, however, supported by the evidence from at least a budget point of view.


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