Agricultural Policy as a Social Engineering Tool

Discussion and Policy Implications

The World Trade Organization Framework Agreement that negotiators accepted in July
2004, and augmented at the December 2005 Ministerial meetings in Hong Kong provides
guidelines on the commitments that might be contained in a Doha Development Agenda
agreement. These commitments address issues related to direct and indirect export
subsidies, domestic support and market access among others. In light of these current
issues, the present study is both timely and relevant, and provides new insights into the
debate on whether countries should be allowed to restrict trade to pursue domestic,
economic, and social policy goals if those policies affect international trade.

The results strongly suggest that farm operators view market access or the
absence or diminution of conditions that restrict trade as an important factor in
international trade. In particular, farm operators across sales categories indicate that trade
should not be restricted for socio-economic policy goals. Given the importance of
agricultural trade this finding is not surprising since restricting trade would adversely
affect trade volume and farm profits as domestic prices decreased.

Given the complexities of international trade one may argue that increased
educational attainment may provide farm operators with a greater understanding of the
policy implications of trade restrictions. These implications include, for example, the
possibility of trade retaliation and the contraction of international trade. The results
suggest that farm operators across education categories are unlikely to favor a policy to
restrict trade to pursue domestic, economic, and social policy goals if those policies affect
international trade.

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