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AEEC 520:

INTERNATIONAL AGRICULTURAL TRADE AND POLICY


FALL 2007
Dr. Rene Hadjigeorgalis
Gerald Thomas Hall 343
Email: Through WEB-CT
Tel: 646-5315
Office Hours: T, TH 3:00 5:00
Course Description:
This course provides a review of international trade theories and examines
the policy implications of international trade for the agricultural sector. First, we
examine the major international trade models. These models help us understand
the fundamentals of trade: What motivates countries to trade? Who trades what
to whom? Who benefits from trade? Who is hurt by trade? Second, we examine
trade instruments such as tariffs, quotas and export subsidies and their impact on
welfare. Finally, we review the major issues in international agricultural trade
and examine preferential trading areas such as NAFTA and the European Union.
Although one of the main objectives of the course is to teach you about
international trade, the more important objectives are to teach you to think
analytically, to learn to do graduate level research and to communicate
professionally both in written and oral form. The tools that we will use to help us
in this objective include short writing assignments, class discussions, and a
research essay.
Readings:
Class Reader
Roberts, Russell. The Choice: A Fable of Free Trade and Protectionism (3rd
Edition). ISBN: 0131433547
Wall Street Journal
Wall Street Journal:
You are expected to read the Wall Street Journal throughout the semester.
On Wednesdays, we will dedicate a portion of class time to discussing current
events related to international trade that have appeared in the WSJ. You will find
that you learn much more from the Wall Street Journal than from either class
lectures or a textbook.
You should come to class on Wednesday with the WSJ articles that you
have read the past week and a short summary of them so that you are prepared to
discuss them among your peers. I highly recommend purchasing a subscription
to the online WSJ because it will make this task much easier for you than flipping
through a weeks worth of newspapers. A 15 week student subscription will cost
you $29.95. You can subscribe online at www.wsj.com. Buyers beware: if you
decide to share an online subscription with someone else, make sure that you

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dont both log on at the same time. According to WSJ, doing so will cancel your
account.
Class Participation and Attendance:
Since this is a seminar-based graduate level course, class participation and
attendance is a requirement and will count for 35% of your grade in the course.
Your participation and attendance grade will be reduced by 10% for each
unexcused absence. Excused absences require the submission of proper
documentation (such as a doctors excuse or letter stating that you will be
traveling on behalf of NMSU).
Readings will be assigned throughout the semester and you will be
expected to come to class prepared to discuss them. Coming to class without
having completed the readings is equivalent to not coming to class and your
participation and attendance grade will be reduced by 10% for each such
occurrence.
All points of view are welcome and encouraged in the class discussions.
You will be expected to respect the opinion of your peers and treat each other in a
collegial manner.
Writing Assignments:
There will be four short writing assignments during the semester. By
short, I mean that they will generally not exceed two double-spaced pages.
Writing assignments will be due by 5:00 p.m. on the due date. No late
assignments will be accepted.
Book Review:
Each student is required to read a book related to international trade,
write a critical book review and present the review in class. Presentations will
take place on a rolling basis as book reviews are submitted. You can expect to
present your book review to the class the week following your written submission.
A list of books that may be read for the book review will be provided on WEB-CT.
Alternatively, you may pick a book that is not on the list, but I will need to
approve it first. All students must inform me of the book that they have chosen
and no subset of students may review the same book. Book reviews will be
accepted between October 1, 2007 and 5:00 p.m. the last day of class. No late
reviews will be accepted.
Grading:
Attendance and Participation
Research Essay
Writing Assignments
Book Review

35%
35%
20%
10%

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The grading scale is as follows:
90-100
80-89
70-79
60-69
less than 60

A
B
C
D
F

All grades will be posted on WEB-CT.


ADA:
If you have or believe that you have a disability, you may wish to selfidentify. You can do so by providing documentation to the Services for Students
with Disabilities office located in Corbett Center 244 (tel: 646-6840: TTY: 6461918). Appropriate accommodations may then be provided for you. If you have a
condition that may affect your ability to exit safely from the premises in an
emergency or which may cause an emergency during class, you are encouraged to
discuss this in confidence with the instructor and/or the Director of the Disabled
Student Programs. If you have general questions about the Americans with
Disabilities Act (ADA), call the ADA coordinator at 646-6840.

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COURSE OUTLINE
Introduction and Overview
The Microeconomics of Trade and Trade Models
Comparative Advantage
Income Distribution Effects,
Resource Endowments and Trade
International Factor Movements
Labor (Immigration)
Capital (International Loans/FDI)
International Trade Policy
Trade Policy Instruments
Dumping
Technical Barriers to Trade
The Political Economy of Trade Policy
Free Trade vs. Protectionism
Income Distribution and Trade Policy
Multilateral Negotiations and Trade Policy
International Trade in Agriculture
Uruguay Round and the Agreement on Agriculture
Sanitary and Phytosanitary (SPS) Measures and Food Safety
Preferential Trading Areas in Agriculture (PTAs)
NAFTA
MERCOSUR
European Union

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READING LIST
Introduction and Overview
The Content and Context of Trade Policy, in Cohen, S. R. Blecker and P.
Whitney, Fundamentals of U.S. Foreign Trade Policy, 2nd Edition,
Boulder: Westview Press, pp. 3-25.
Historical Survey of U.S. Trade Relations, in Cohen, S. R. Blecker and P.
Whitney, Fundamentals of U.S. Foreign Trade Policy, 2nd Edition,
Boulder: Westview Press, pp. 26-48.
The Microeconomics of Trade and Trade Models
Economic Theories of International Trade, in Cohen, S. R. Blecker and P.
Whitney, Fundamentals of U.S. Foreign Trade Policy, 2nd Edition,
Boulder: Westview Press, pp. 49-79.
Krugman, P. (1997). Pop Internationalism, MIT Press
Chapter 1: Competitiveness: A Dangerous Obsession, pp. 3-24
Chapter 5: The Illusion of Conflict in International Trade, pp. 6984.
Roberts, R. (2001), The Choice: A Fable of Free Trade and Protectionism, Upper
Saddle River, N.J.: Prentice Hall Chapters 1-4
International Factor Movements
Freeman, Richard B. (1995), Are your wages set in Beijing? The Journal of
Economic Perspectives, 9:3(15-32).
Golub, Stephen (2000), Does Trade with Low-Wage Countries Hurt American
Workers? in International Economics and International Economic
Policy: A Reader, 3rd Edition, Boston: McGraw-Hill, pp. 132-143
Krugman, P. (1997). Pop Internationalism, MIT Press
Chapter3: Trade, Jobs and Wages, (with Robert Z. Lawrence), pp
35-48.
International Trade Policy
Roberts, R. (2001), The Choice: A Fable of Free Trade and Protectionism,
Upper Saddle River, N.J.: Prentice Hall Chapters 5-9.
Feenstra, Robert C. (2000), How Costly is Protectionism? in International
Economics and International Economic Policy: a Reader, 3rd
Edition, Boston: McGraw-Hill, pp. 3-18.
Klitgaard, Thomas and Karen Schiele (2000), Free versus Fair Trade: The
Dumping Issue, in International Economics and International

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Economic Policy: A Reader, 3rd Edition, Boston: McGraw-Hill, pp.
30-37.
The Political Economy of Trade Policy
Groombridge, Mark A. (2004), Toughest on the Poor: Americas Flawed Tariff
System, in International Economics and International Economic
Policy: A Reader, 4th Edition, Boston: McGraw-Hill, pp. 19-23.
Gresser, Edward (2004), Americas Bittersweet Sugar Policy, in International
Economics and International Economic Policy: A Reader, 4th
Edition, Boston: McGraw-Hill, pp.46-54.
Federal Reserve Bank of Dallas, The Fruits of Free Trade, 2002 Annual Report.
Krugman, P. (1997), The Trade Deficit, in The Age of Diminished Expectations,
Cambridge: MIT Press, pp. 39-54.
Krugman, P. (1997), Free Trade and Protectionism, in The Age of Diminished
Expectations, Cambridge: MIT Press, pp. 121-133.
Roberts, R. (2001), The Choice: A Fable of Free Trade and Protectionism, Upper
Saddle River, N.J.: Prentice Hall Chapters 10-13.
International Trade in Agriculture
WTO, Understanding the WTO Agreement on Sanitary and Phytosanitary
Measures.
Kastner, Justin and Douglas Powell (2002). The SPS Agreement: Addressing
historical factors in trade dispute resolution, Agriculture and Human
Values 19: 283-292.
Calvin, Linda and Barry Krissoff (1998). Technical Barriers to Trade: A Case
Study of Phytosanitary Barriers and U.S.-Japanese Apple Trade, Journal
of Agricultural and Resource Economics 23(2)351-366.
Preferential Trading Areas (PTAs)
Moss, Joanna. Economic Developments during NAFTAs First Decade,
International Economics and International Economic Policy: A
Reader, 4th Edition, Boston: McGraw-Hill, pp. 155-181.
Krugman, P. (1997). Pop Internationalism, MIT Press
Chapter 10: The Uncomfortable Truth About NAFTA, pp. 155-166.
Krugman, Paul. (1993). What do Undergrads Need to Know About Trade? The
American Economic Review, 83(2):23-26.