@article{Saito:242292,
      recid = {242292},
      author = {Saito, Katsuhiro},
      title = {International Trading Rules and the Market Mechanisms:  Changes in the International Market of Agricultural  Commodities},
      journal = {Journal of Rural Economics},
      address = {2013-09},
      number = {359-2016-18460},
      pages = {13},
      year = {2013},
      abstract = {The purpose of this paper is to discuss the relation  between international trading rules and the market  mechanisms. The aim of the GATT/WTO is to promote  international trade through market mechanism based on a  competitive market structure and to be supported by the  fundamental theorem of welfare economics that states a  competitive market equilibrium induces the Pareto optimal  resource allocation. However, if a market is not  competitive or is distorted, it may fail to optimize  national welfare through resource allocation. Under the  current international trading rules, the Free Trade  Agreements and State Trade Enterprises are exceptionally  allowed. Trade diversion effects and the market power of  the State Trade Enterprises might deteriorate the national  welfare. In the long run, it is of utmost importance to  remove these distortions. When the welfare change in  domestic policies harmonized under the international  trading rules is evaluated in the short and medium terms,  it is necessary to consider the market distortions as well  as the appropriate market structure. Since there are a few  econometric studies that identify the international market  structure, it is valuable to accumulate the empirical  studies regarding international agricultural markets.},
      url = {http://ageconsearch.umn.edu/record/242292},
      doi = {https://doi.org/10.22004/ag.econ.242292},
}