U.S. food aid and American exports to recipient countries during the Cold War

In this article, we test to what extent the food aid granted by the U.S. during the Cold War was strategically motivated and used to promote U.S. interests. Using the data for the period 1971–1990, we investigate whether U.S. wheat aid had an effect on recipient countries’ total import of American products. The evidence we provide suggests a positive and robust relationship and thus it is consistent with the argument that U.S. food aid helped to create larger markets for U.S. producers.     

Aquaculture imports from Asia: an analysis of U.S. consumer demand for select food quality attributes

The increasing share of imported food in the United States, coupled with highly publicized incidents of food contamination and adulteration in Asia, particularly China, is posing new challenges for consumers and food safety regulators. In this study, we focus on imported shrimp and tilapia, to evaluate consumer willingness‐to‐pay (WTP) for enhanced food safety, use of antibiotics, and eco‐friendly environmental practices. Results show that U.S. consumers were willing‐to‐pay more for enhanced food safety, followed by the use of no antibiotics and environmental friendly production practices. American consumers in our sample were found to have a higher WTP for domestic products and placed more trust on U.S. government verification of product attributes followed by third‐party certification.     

Legal systems, institutional environment, and food safety

In the aftermath of the recent food scares, the United States and the United Kingdom face major challenges to maintain a safe food system. Regulators on opposite sides of the Atlantic are facing rapid product and process innovations, changes in consumption behaviors, expansion of international trade, and discovery of new food hazards. The U.K. and the U.S. demonstrate different approaches to manage safety risks. This article will focus on two issues: the reasons behind the differences in the American and English policy approaches to food safety, and how these differences impact U.S. safety outcomes. A comparative legal framework is provided to understand how food safety is elicited in the economy and the incentive implications of the different institutional settings. These two different lenses, because they differ so, teach us about the fundamental sources of safety. The U.K.'s prevalent doctrine is parliamentary sovereignty and leads to a regulatory framework, while the U.S. is based on constitutional supremacy and relies on a legal framework. The source of safety under a regulatory framework is the government bureaucracy, while the U.S. legal framework provides an important point of departure—the constitutional standing of the firm and the consumer. We argue that while the U.K. system is structured to work through a regulatory framework to enhance the supply of safety in the economy, the U.S. system is much less directed. The legal system, the subject of this article, plays an important role not only in discouraging breach but also in acting as a check on the discretionary authority of the regulator. In the end, the U.S. and the U.K. may have equally safe food systems, but what differs is the fundamental source of the safety supply. The practical implication is that safety in the food system emerges from several sources, not just through regulation. Therefore, direct importation of U.K.‐style regulatory approaches may not be effective within a U.S. constitutional setting.     

Effect of Sugar Price Policy on U.S. Imports of Processed Sugar-containing Foods

The relationship between U.S. and world sugar prices, and U.S. import demand for four categories of sugar-containing products is examined. Results from econometric estimation indicate that U.S. intervention in the sugar market has helped to increase U.S. imports of some sugar-containing products, but that increased disposable income has played a more important role. Although some developing countries have benefitted from U.S. sugar policy by increasing their exports of sugar-containing products to the United States, U.S. sugar policy has helped imports from developed countries proportionately more than those from developing countries as a whole.     

Does Food Safety Information Impact U.S. Meat Demand?

A theoretical model of consumer response to publicized food safety information on meat demand is developed with an empirical application to U.S. meat consumption. Evidence is found for the existence of pre-committed levels of consumption, seasonal factors, time trends, and contemporaneous own- and cross-commodity food safety concerns. The average demand response to food safety concerns is small, especially in comparison to price effects, and to previous estimates of health related issues. This small average effect masks periods of significantly larger responses corresponding with prominent food safety events, but these larger impacts are short-lived with no apparent food safety lagged effects on demand.     

Productivity Growth and Environmental Regulation in Mexican and U.S. Food Manufacturing

Many argued during the NAFTA debate that trade liberalization would favor Mexican over U.S. food processors, especially because of lax environmental laws south of the border. We find through an examination of profit functions that productivity growth in Mexico has outstripped that in the United States, suggesting free trade indeed will benefit Mexican suppliers. U.S. pollution regulations have had no impact on the profitability or productivity of U.S. food manufacturing. In contrast, Mexico's swiftly rising environmental standards have enhanced food processors' productivity growth, corroborating the Porter hypothesis. Pollution law, therefore, has favored Mexican over U.S. food processing, but for reasons few had anticipated.     

Why U.S. Consumers Support Country of Origin Labeling: Examining the Impact of Ethnocentrism and Food Safety

ABSTRACT

The legality of U.S. country of origin labeling (COOL) laws for agricultural products has been challenged by foreign countries. Isolating the reasons why consumers support COOL can help determine the efficiency of COOL as a policy. Therefore, this study investigated why consumers have a desire for COOL. Data were collected through an online survey with 566 U.S. participants. Results of a bivariate ordered probit model indicate that as consumers are more ethnocentric and more pessimistic about the safety of their food, they are more likely to support COOL for sugar and for sugar in soft drinks. Thus, policies designed to inform the public about the safety of foreign commodities could reduce their desire for COOL. Evidence is also provided that highly ethnocentric individuals support COOL in an effort to “buy American” products.     

Tariff quota administration in China's grain markets: An empirical assessment

In 2016, the U.S. launched a trade dispute against China at the World Trade Organization, arguing that China has been restricting its grain imports via tariff quota administration. Despite sharp criticisms by the U.S., the extent to which the grain imports were restricted in China remains largely unknown, primarily due to that China's grain import behaviors are still under-researched. The U.S. grain export sector might actually gain little from China's grain trade liberalization in the short run, since China has become less import dependent on the U.S. through the pursuit of import diversification. In this context, this article aims to quantify impacts of the tariff quota administration on China's grain imports from its trading partners. We calculate ad valorem tariff equivalents of the tariff quota administration and then estimate import demand elasticities using a source differentiated import demand model. We find that the tariff quota administration might have reduced China's quota fill rates for the grain commodities by 10–35% during 2013–2017. In particular, the U.S. wheat exports to China were largely negatively affected. We also find that the tariff quota administration in China acts like a variable import levy—its import restrictiveness varies negatively with world prices, leading to lower import demand elasticities.     

U.S. Citrus Import Demand: Seasonality and Substitution

Citrus fruits make up 1/5 of all fresh fruit consumed in the United States. Given the increasing importance of imported citrus in the diet of American consumers, it is perhaps surprising that no import demand analysis of U.S. citrus has been conducted. Using quarterly U.S. import data for 6 citrus commodities, we employed a demand systems model and evaluated aspects of seasonality. The results suggest wide variations in price responses to different types of imported citrus. The average amplitude and phase shift suggest that all citrus fruits exhibit some seasonality in their imports, likely a result of peak harvesting schedules of exporters.     

Linking of U.S. monetary policy and exchange rates to world soybean markets

The linkage between macroeconomic policies and agricultural commodity trade has become an important research issue of agricultural economists. This paper investigates the macroeconomic linkage of soybean trade competition between the exporting countries of the United States, Brazil, and Argentina in the EC-12 and Japan import markets. It is argued that U.S. monetary growth may have important impacts on the competitive position of U.S. soybean exports through exchange rates. Two relationships are investigated: (a) the effects of U.S. monetary growth on the agricultural trade weighted exchange rates, and (b) the responsiveness of agricultural commodity prices and U.S. exports to exchange rate movements. Results indicate that a weak dollar increases imports of soybeans and soymeal significantly which serves to increase the equilibrium world price and increase both U.S. and Brazil/Argentina exports in the long run. However, during periods of more expansionary U.S. monetary policy there is little evidence of significant increases in market share position for U.S. soybeans and soymeal in world markets.     

Demand for collective food‐safety standards

In 2007, leading members of the U.S. fresh‐tomato industry responded to pressure from the U.S. Food and Drug Administration regarding the industry's long history of poor food‐safety outcomes and adopted a set of standards for production practices related to food safety at all levels of the fresh‐tomato supply chain. Adherence to these standards was required under a federal marketing order that applied to essentially all tomatoes grown in Florida. The California Tomato Farmers cooperative, whose members produced the vast majority of fresh tomatoes grown in California, also required that its members adopt these standards. The collective food‐safety standards for fresh tomatoes closely resemble the requirements of the U.S. Food Safety Modernization Act (FSMA) Produce Safety Rule, so the collective adoption of these standards provides an excellent case study to illustrate the possible effects of FSMA implementation on demand. I assess the hypothesis that demand for tomatoes from Florida and California increased following the adoption of standards for food‐safety practices by growers in those states, relative to demand for tomatoes from other regions. My analysis demonstrates essentially no evidence that demand for fresh tomatoes responded positively to the implementation of collective food‐safety practices.     

Noneconomic Distortions in International Agricultural Trade:

A U.S. import demand model for palm oil empirically addresses the objectives of ascertaining whether significant shifts in U.S. import patterns for palm oil followed an American Soybean Association negative informational campaign against "fatty" tropical oils and whether factors such as exchange rates significantly affected the decline of U.S. palm oil imports after the campaign. Evidence suggests that structural change in U.S. import demand for palm oil followed commencement of the campaign, including significant changes in the own- and cross-price responsiveness of palm oil. Results also indicate that exchange rates did not contribute to declining U.S. palm oil imports.     

The U.S. Sugar Policy Reforms and World Sugar Trade

This article incorporates the U.S. sugar policy instruments in a spatial Nash equilibrium model of world sugar trade and simulates the consequences of the U.S. sugar policy reforms on sugar trade among major producing and consuming regions of the world. The results show that policy reforms which eliminate import barriers by the U.S. can lead to major changes in the directions and volumes of sugar trade. Specifically, U.S. sugar imports would increase but domestic production and consumer prices would decline. Several regions in the developing world would increase their shares of the world sugar export trade.     

U.S. Farm Safety Nets and the 2000 Agricultural Risk Protection Act

Although crop insurance programs have been an important part of U.S. agricultural policy since the 1930s, the "safety net" matra has taken on new relevance and importance in recent policy deliberations and rhetoric. This paper contains a non technical review of issues underlying the safety net concept in U.S. agricultural policy. We outline recent changes in U.S. crop insurance programs and review provisions of the 2000 Agricultural Risk Protection Act (ARPA), which had a significant impact on U.S. risk management programs by expanding crop and revenue insurance subsidies and stimulating new product development. A simple empirical analysis of how these changes may have affected program participation is considered. We then outline points relevant to 2002 Farm Bill deliberations. As is pointed out, the safety net concept seems pervasive to all policy discussions. Countercylical payments, even when provided on an ad hoc basis, may distort production and trade conditions.     

An econometric analysis of U.S. vital wheat gluten imports

In light of the wheat wet milling industry's development in the E.C. and of the prominent role U.S imports play in the international market for wheat gluten, this paper discusses the international market for wheat gluten, an important component of processed grain products. An econometric analysis of the U.S. import demand for wheat gluten is undertaken. The price of flour, income, and the U.S. value of wheat protein are found to be important determinants of wheat gluten imports.     

U.S. Agricultural Trade with Mexico

Abstract

This study examined the effects of exchange rates, economic growth, trade liberalization, and export assistance programs on U.S. agricultural exports to Mexico. The Commodity Credit Corporation's GSM-102 Export Credit Guarantee Program reduces the risk associated with export financing and payment. The impact of the export credit guarantee program on U.S. agricultural exports to Mexico was estimated in an import demand model using quarterly data from 1980 to 1996. The results indicate that for every $1 of export credit guarantees, Mexican imports of U.S. farm products increased $0.30. Real income growth in Mexico, however, was the most important factor in the expansion of U.S. exports. Trade liberalization under NAFTA also increased U.S. exports to Mexico.     

U.S. Demand for Imported Wines

The U.S. is viewed as a lucrative market outlet for surplus wines produced in the leading wine exporting countries in the world. Structural U.S. import demand functions were estimated for French, Italian, Spanish, Portuguese, and German wines as well as for those that are U.S. produced. The equations were estimated with two-stage least-squares because of simultaneity between quantity demanded and price. Direct price, cross, and income elasticities were calculated to determine the degree of competiveness among the various wines of differing origin. Two separate groups of wine were identified. First, U.S. produced, French, and German wines were in one group. Spanish, Portuguese, and Italian wines comprised the second group. The latter group also encountered competition from the first group of wines.     

A Spatial Equilibrium Analysis of U.S.–Canadian Disputes on the World Softwood Lumber Market

This paper utilizes a world spatial equilibrium model to examine the effects of U.S.–Canadian softwood lumber disputes on U.S., Canadian, and other exporters' and importers' lumber markets. Results show that the U.S. import tariff on Canadian softwood lumber impacts prices, supply, demand and trade flows not only in the United States and Canada but also in the other countries. Though the goal of U.S. trade restriction is to limit imports from Canada and protect its producers, the United States cannot fully accomplish this goal as non-Canadian exporters fill the void left by the reduced imports from Canada. Canadian producers lose from the U.S. policy, but their loss is mitigated as Canada redirects its exports to other importers. Importing countries such as Japan and the European Union benefit from the U.S. trade restrictions as Canada seeks to sell its softwood lumber to these countries.     

Welfare Impacts of the Canada-U.S. Softwood Lumber Trade Dispute: Beggar Thy Consumer Trade Policy

The welfare impacts of the 1987–91 Canadian "voluntary" 15% lumber export tax and the current 6.51 % U. S. import duty are analyzed using a simultaneous equations model of the softwood lumber market. The results show that U.S. consumers suffer losses 35% to 45% of those endured by Canadian producers. Canadian national welfare was much higher under the voluntary export tax, indicating the Canadian government erred in unilaterally terminating the agreement. In both instances, the U.S. government pursued policies that benefited domestic producers at the expense of U.S. lumber consumers, with no attempt or discussion of compensation. Thus, this appears to be a case of "beggar thy consumer" trade policy.     

The linkage between the U.S. ethanol market and developing countries’ maize prices: a panel SVAR analysis

The major expansion of U.S. ethanol production raises concerns about the potential detrimental impacts on developing countries’ agricultural prices, farm income, and food security. To assess the sensitivity of maize prices to ethanol production, this study explores the linkage between the U.S. ethanol market and developing countries’ maize prices. The econometric approach, based on a panel structural vector autoregression model, captures market interdependencies and the likelihood that developing countries’ responses are both heterogeneous and dynamic. The results indicate that the U.S. ethanol market's impacts on maize prices in developing countries are heterogeneous and that coastal countries are more susceptible to U.S. economic shocks. The estimates also suggest that countries more dependent on food imports and/or receiving U.S. food aid are at a higher risk of being affected by such shocks. Overall, the results indicate that those countries with the greatest sensitivity and exposure to global agricultural commodity markets could benefit from domestic policies and international assistance, which reduce their exposure to impacts from the U.S. maize market.