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European Community Enlargement: Impact on U.S. Corn and Soybean Exports
Author(s) -
Haniotis Tassos
Publication year - 1990
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1242332
Subject(s) - resizing , european community , economics , international economics , international trade , european union
This paper utilizes the framework of an Armington model to analyze the impact of the European Community enlargement on U.S. corn and soybean exports. Results indicate that the enlargement has a significant and negative impact on U.S. corn exports to the new EC members. Increases in U.S. soybean exports are much smaller in volume terms. Declines in U.S. corn export prices outweigh the insignificant increases in U.S. soybean export prices and therefore accentuate U.S. losses. However, the U.S.‐EC agreement on their enlargement dispute cut net losses of U.S. corn and soybean exports to Spain and Portugal by about a third.