ORGANIZED SYMPOSIUM PROPOSAL

ORGANIZERS:

Flynn Adcock Texas A&M University

Parr Rosson Dept. of Agricultural Economics

(979) 845-8694 2124 TAMU

fjadcock@tamu.edu College Station, TX 77843-2124

TITLE: The Impacts of U.S. Unilateral Policy Reform on Southern Agriculture

ABSTRACT: Periodically, the U.S. government unilaterally implements policies that impact international agricultural market opportunities and the ability domestic producers to compete effectively within the borders of the United States. Over the past fifty years, various macroeconomic policy changes, U.S. trade sanctions against several countries, and other legislation such as immigration reforms have significantly impacted U.S. and Southern agriculture. This symposium will address these and other issues related to U.S. policy changes and their impacts on Southern agriculture, and identify major implications for the development of applied research and extension programs.

MODERATOR:

Larry Sanders, Oklahoma State University, larry.sanders@okstate.edu

PARTICIPANTS:

Mike Reed, University of Kentucky, mreed@pop.uky.edu

“Macroeconomic Policy Changes and their Effects on U.S. Agricultural Trade”

Parr Rosson and Flynn Adcock, Texas A&M University

prosson@tamu.edu and fjadcock@tamu.edu

“From Cuba to Iraq: Trade Sanctions Reform and Agricultural Markets”

Eric Wailes, University of Arkansas,ewailes@comp.uark.edu

“The Impacts of Trade Sanctions on Southern Agriculture: The Case of Rice”

John VanSickle, University of Florida, sickle@ufl.edu

“Immigration Reform and the Competitiveness of Southern Agriculture”

RESPONDENT:

Albert Allen, Mississippi State University, allen@agecon.msstate.edu

FORMAT: Sanders will introduce the topic and moderate the symposium. Each of four speakers will be given 15 minutes present their topic. Allen will respond to the presentations and set the stage for and interactive discussion, which should last at least 30 minutes. Participation from attendees will be invited and encouraged.

JUSTIFICATION AND DESCRIPTION:

Some analysts contend that international trade is critical to the future growth of the U.S. agriculture. U.S. agriculture is four times more dependent on trade than the overall U.S. economy, with 28 percent of farm cash receipts generated by exports, compared to only seven percent of GDP attributed to exports for the U.S. economy. Further, the continued restructuring of U.S. farm programs, coupled with the likelihood of federal budget reductions, may force producers to bear more of the price and income risks formerly shared with government. Southern U.S. agriculture is no exception to this and could be greatly benefited by gaining greater international market access.

Most analyses regarding policies which impact U.S. agricultural trade focus on trade agreements. These multinational policy agreements have significant impacts on market access and import competition, whether the agreement be with a one country like the U.S.-Chile or U.S.-Australia Free Trade Agreements (FTAs); with a small group of countries such as the North American Free Trade Agreement (NAFTA) or the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR); or with the large number of countries involved in the World Trade Organization.

However, sometimes the U.S. government unilaterally implements policies which greatly impact international agricultural market opportunities and the ability domestic producers to compete effectively within the borders of the United States. Over the past fifty years, a series of macroeconomic policies, U.S. trade sanctions against various countries, and other legislation such as immigration reform has significantly impacted U.S. and Southern agriculture.

This symposium will address these and other issues related to unilateral policy changes by the U.S. government. The first presentation will lay out how changes in macroeconomic policies have affected international agricultural trade. This will include how a low inflation policy and federal budget deficits have impacted U.S. interest rates and exchange rates. The second presenter will provide an analysis of how the imposition and removal of U.S. trade sanctions as a result of international frictions has both helped and hurt exports of agricultural commodities grown in the Southern U.S. Sanctions on Cuba, the Soviet Union, Iran and Iraq will be discussed. The third presentation will examine the impacts of U.S. trade sanctions on the rice industry, an industry which always seems to be substantially effected when trade sanctions are either imposed or removed. The final presenter will focus on potential implications of various immigration reform policies on the availability and cost of farm labor how that could bear upon the competitiveness of U.S. and Southern agriculture in foreign as well as domestic markets. A discussant will respond to the presentations, identify major implications for the development of applied research and extension programs, and set the stage for continued discussion.

While NAFTA, CAFTA-DR, and the WTO may be the most commonly discussed policies which impact the global competitiveness of U.S. and Southern agriculture, unilateral policy changes also have significant effects. Southern land grant applied research and extension economists need to be prepared to study the impacts of changes brought about by these unilateral policy changes and their impacts on Southern agriculture, and then deliver outreach and other educational programs to disseminate the results.