@article{Sheldon:232833,
      recid = {232833},
      author = {Sheldon, Ian M. and McCorriston, Steve},
      title = {Imperfect Competition and Strategic Trade Policy in the  Food Industries},
      address = {1990-03},
      number = {1294-2016-102340},
      series = {OP},
      pages = {26},
      year = {1990},
      abstract = {The current GATT negotiations on farm policy are aimed at  removing distortions in the
international trade of  agricultural products. However, a large proportion of the  world's trade in food and agricultural products occurs in  high-value processed food products where markets can often  be described as having imperfectly competitive market  structures, characterised by high seller concentration,  economies of scale and product differentiation. In this  context, recent developments in the international economics  literature have focussed on the impact of imperfect  competition in international markets. In particular, a  theoretical rationale has been given for the use of  protectionist trade policies. Therefore, the overall aim of  this paper is to explore the relevance of these theoretical  developments to trade in highly processed food and related  products. The paper is outlined as follows: Section 1  presents an outline of the arguments for active trade  policy where markets are imperfectly competitive. Section 2  considers the optimal policies for an exporting and  importing country respectively. The results indicate that  even though export subsidies and import tariffs may be  justified, such policies may be inferior to alternative  forms of trade intervention such as maximum export and  import prices. The application of the theoretical results  to the US brewing and processed cheese sectors is presented  in Section 3, whilst Section 4 provides a summary and  conclusion.},
      url = {http://ageconsearch.umn.edu/record/232833},
      doi = {https://doi.org/10.22004/ag.econ.232833},
}