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State Trading In Agriculture: An Analytical Framework

Author

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  • Dixit, Praveen M.
  • Josling, Timothy E.

Abstract

This paper highlights some of the recent concerns regarding agricultural state trading enterprises (STEs) and proposes an analytical framework to examine the trade impacts of such entities. Issues associated with discriminatory pricing, exclusive rights to sell and purchase commodities, and unfair competitive advantage vis-a-vis private traders are expected to be major concerns on the export side, while on the import side, the relevance of tariffication in the presence of STEs is being questioned. Our paper proposes that, in most instances, tariff equivalents are the most relevant methodology to quantify the trade impacts of agricultural STEs. But, obtaining empirical information that would enable the calculation of such measures is not an easy task. To that end, a classification scheme that highlights the different types of STEs in terms of their ability to distort trade is proposed. Quantification can then focus on those most likely to impact trade.

Suggested Citation

  • Dixit, Praveen M. & Josling, Timothy E., 1997. "State Trading In Agriculture: An Analytical Framework," Working Papers 14608, International Agricultural Trade Research Consortium.
    • Handle: RePEc:ags:iatrwp:14608
    DOI: 10.22004/ag.econ.14608
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    File URL: https://ageconsearch.umn.edu/record/14608/files/wp9704.pdf
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    References listed on IDEAS

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    1. M. M. Kostecki, 1982. "State Trading by the Advanced and Developing Countries: the Background," Palgrave Macmillan Books, in: M. M. Kostecki (ed.), State Trading in International Markets, chapter 1, pages 6-21, Palgrave Macmillan.
    2. P. J. Lloyd, 1982. "State Trading and the Theory of International Trade," Palgrave Macmillan Books, in: M. M. Kostecki (ed.), State Trading in International Markets, chapter 6, pages 117-141, Palgrave Macmillan.
    3. Ivan Bernier, 1982. "State Trading and the GATT," Palgrave Macmillan Books, in: M. M. Kostecki (ed.), State Trading in International Markets, chapter 12, pages 245-260, Palgrave Macmillan.
    4. Alex F. Mccalla & Andrew Schmitz, 1982. "State Trading in Grain," Palgrave Macmillan Books, in: M. M. Kostecki (ed.), State Trading in International Markets, chapter 3, pages 55-77, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Ricardo Argüello C., 2006. "Sector agrícola y política de competencia," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 8(15), pages 227-249, July-Dece.
    2. Steve McCorriston & Donald MacLaren, 2013. "Redistribution, state trading enterprises and ‘politically optimal’ tariffs," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 46(4), pages 1351-1379, November.
    3. Young, Linda M., 2005. "Export Competition Disciplines in the Doha Round," Trade Issues Papers 14573, International Agricultural Trade Research Consortium.
    4. Schluep, Isabelle & De Gorter, Harry, 2000. "The Definition of Export Subsidies and the Agreement on Agriculture," 2000 Conference, August 13-18, 2000, Berlin, Germany 197221, International Association of Agricultural Economists.
    5. William W. Wilson & Bruce L. Dahl, 2004. "Transparency and Bidding Competition in International Wheat Trade," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 52(1), pages 89-105, March.
    6. Young, Linda M. & Abbott, Philip C. & Leetmaa, Susan E., 2001. "Export Competition: Issues And Options In The Agricultural Negotiations," Commissioned Papers 14624, International Agricultural Trade Research Consortium.
    7. Marie-Ange VEGANZONES-VAROUDAKIS, 2000. "Market Access, Export Subsidies, Domestic Support and the WTO Negociations: a Review and Synthesis," Working Papers 200008, CERDI.
    8. Anania, Giovanni, 2003. "Gains from trade liberalization with imperfectly competitive world markets. A note," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 3(06), pages 1-15.
    9. Miller, Andrew D. & Langley, Suchada V. & Chambers, William, 2003. "Current Issues Affecting Trade And Trade Policy: An Annotated Literature Review," Working Papers 14606, International Agricultural Trade Research Consortium.
    10. Song, Baohui & Veeramani, Venkat N. & Marchant, Mary A. & Xu, Shuang, 2004. "Estimation Of Market Power In The U.S. Soybean Export Markets," 2004 Annual meeting, August 1-4, Denver, CO 20311, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Philip C. Abbott & Linda M. Young, 1999. "Wheat-Importing State Trading Enterprises: Impacts on the World Wheat Market," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 47(2), pages 119-136, July.
    12. Jana Hranaiova & Harry de Gorter, 2006. "State Trading and Tariff Rate Quotas: The Case of Korea’s Rice Imports," Review of Development Economics, Wiley Blackwell, vol. 10(4), pages 632-651, November.
    13. McCorriston, Steve & MacLaren, Donald, 2001. "The Trade Distorting Effect Of Single-Desk State Trading Exporters," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125790, Australian Agricultural and Resource Economics Society.
    14. Sorensen, Ann-Christin & Tennbakk, Berit, 2002. "Regulatory Institutions in Agricultural Markets: A Comparative Analysis," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24916, European Association of Agricultural Economists.
    15. Yoon, Jung-Hyun & Lim, Song Soo, 2013. "Potential trade distortion effects of state trading enterprises under the tariff-rate quota scheme," Economics Discussion Papers 2013-22, Kiel Institute for the World Economy (IfW Kiel).
    16. Ahmed, Wasim & Hussain, Safdar & Jafar, Rana Muhammad Sohail & Guang-Ju, Wang & Rabnawaz, Ambar & Saqib, Zulkaif Ahmed & JianZhou, Yang, 2016. "Impacts of Trade Liberalization on Dairy Industry in China," MPRA Paper 70385, University Library of Munich, Germany.
    17. Young, Linda M., 1999. "Prevalence And Reform Of State Trading Importers In World Grain Markets," Research Discussion Papers 29241, Montana State University, Department of Agricultural Economics and Economics, Trade Research Center.

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