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Bargaining for European Union Farm Policy Reform through U.S. Pesticide Restrictions
Published online by Cambridge University Press: 15 September 2016
Abstract
Future trade negotiations will incorporate environmental concerns. This study presents a framework to evaluate whether the United States would be willing to adopt a pesticide restriction in exchange for European Union liberalization of producer support. It outlines the conditions that must be met if a bargain is to occur. Partial equilibrium commodity models test whether the conditions for a bargaining solution are satisfied. The research results indicate that a potential bargain is possible for stricter U.S. environmental regulations in coarse grains if there is a sufficiently large positive EU externality. Conditions in the oilseed market preclude a bargain.
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- Copyright © 1999 Northeastern Agricultural and Resource Economics Association
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