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The European Union-United States Wheat Gluten Policy Dispute

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  • Balzer, Brian
  • Stiegert, Kyle W.

Abstract

On June 1, 1998, President Clinton approved a three-year quota on wheat gluten imports from Australia, the European Union, and all other nonexcluded countries. The quota-remedy will be reviewed for possible extension for up to five additional years. The potential for extensions is an important reason to develop a better economic understanding of this industry and the effectiveness of the implemented quotas. The purpose of this paper is to provide background on the gluten trade dispute, to decipher the qualitative impacts of EU policies on world gluten markets, and to evaluate the potential effectiveness of the U.S. quota remedy. The U.S. industry has operated at a low level of capacity utilization, implying high elasticity of supply; demand is inelastic; and Canada, a major producer and exporter of gluten, was excluded from the quota. These factors are likely to significantly limit the quota's effectiveness but may give the industry time to develop value-added products that use their primary outputs.

Suggested Citation

  • Balzer, Brian & Stiegert, Kyle W., 1999. "The European Union-United States Wheat Gluten Policy Dispute," Journal of Food Distribution Research, Food Distribution Research Society, vol. 30(2), pages 1-10, July.
    • Handle: RePEc:ags:jlofdr:27387
    DOI: 10.22004/ag.econ.27387
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    References listed on IDEAS

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    1. Stiegert, Kyle W. & Blanc, Jean-Pierre, 1997. "Japanese Demand For Wheat Protein Quantity And Quality," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 22(1), pages 1-16, July.
    2. François Ortalo‐Magné & Barry K. Goodwin, 1992. "An econometric analysis of U.S. vital wheat gluten imports," Agricultural Economics, International Association of Agricultural Economists, vol. 7(1), pages 65-75, June.
    3. Parcell, Joseph L. & Stiegert, Kyle W., 1998. "Competition For U.S. Hard Wheat Characteristics," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(1), pages 1-15, July.
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    Cited by:

    1. Boland, Michael A. & Brester, Gary W. & Taylor, Mykel R., 2005. "Global and U.S. Wheat Gluten Industries: Structure, Competition, and Trade," Briefings 29220, Montana State University, Department of Agricultural Economics and Economics, Agricultural Marketing Policy Center.
    2. Kyle Stiegert & Brian Balzer, 2001. "Evaluating the U.S. Wheat Protein Complex," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 49(3), pages 337-351, November.
    3. Zhang, Caiping & Marsh, Thomas L., 2006. "Impacts of Gluten Imports on U.S. Food Wheat Use," 2006 Annual meeting, July 23-26, Long Beach, CA 21283, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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    Agricultural and Food Policy;

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