Free Trade Agriculture the Issue Essay

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On the other side of the barricade stand the European Union and Japan.

Canada and Bolivia are part of several free trade agreements: Bolivia is part of the Andean Community Free Trade Area, while Canada is part of NAFTA.

The effects of free trade in agriculture in countries like Canada, China, and Bolivia can be quite diverse. Canada is a developed, industrialized country that can better handle the negative aspects implied by trade liberalization in agriculture. The same situation does not apply to China and Bolivia that are low income countries, where free trade can have more significant effects.

The main advantages of free circulation in agriculture consist in the fact that prices would be lower, favoring the consumers. In low income countries like China and Bolivia, this would further lead to increased food consumption. In developed countries like Canada, it would lead to sustained economic growth. Large producers would also benefit from the elimination of tariff barriers.

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This is why large, developed countries, economic powers, are struggling to eliminate trade taxes.

The disadvantages of free trade in agriculture are also numerous. For example, farm incomes are likely to decrease. Also, consumer prices will tend to rise. This would only help large companies in agriculture to gain enormous profits. Because of these aspects, it would be difficult for domestic agriculture programs to be applied.

Reference List

North American Free Trade Agreement (2008). United States Department of Agriculture. Retrieved December 7, 2008 at http://www.fas.usda.gov/itp/Policy/nafta/nafta.asp.

NAFTA Overview (2006). United States Department of Agriculture. Retrieved December 7, 2008 at http://www.fas.usda.gov/itp/Policy/nafta/NAFTA_Overview_2006_files/frame.htm.

Fabiosa, Jacinto F. (2008). What Effect Does the Free Trade in Agriculture Have on Developing Country Populations Around the World? Center for Agricultural and Rural Development. Iowa State University. Retrieved December 7, 2008 at http://www.card.iastate.edu/publications/DBS/PDFFiles/08wp466.pdf......

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