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Abstract

Domestic resource policies, such as below-market price irrigation water and conservation acreage retirement, may be important to the GATT (General Agreement on Tariffs and Trade) negotiations when they are, in effect, subsidies that can affect production and trade. This report looks at both explicit and implicit producer subsidies in overall terms and with respect to specific policies of major trading countries. Two guidelines are presented that might be used to determine whether resource policies distort trade.

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