Files
Abstract
Barter and barter-type agreements are employed by developing and centrally-planned countries in trade of both agricultural and nonagricultural products. These types of agreements generally involve the exchange of goods without the transfer of international currencies. This paper answers the question "why barter?" by describing the economic and political motives behind barter agreements and by providing a sample of agreements between countries that use barter in trade. The operation of the U.S. Barter Program from 1950 to 1973, which arranged for exchanges of agricultural commodities for strategic materials, supplies, and services, is described and the potential for future U.S. barter of agricultural commodities for strategic materials is examined. Results indicate that several developing countries could become key barter partners.