207-404 Agricultural Policy&International Trade

207-101 Economics of Resource Use, or 316-102 Introductory Microeconomics, 208-301 Agricultural Marketing. Consent from the subject co-ordinator is required for students not enrolled in Honours.

On successful completion of this subject students should be able to:

• explain the reasons for government intervention in the agri-food sectors of several countries, including Australia, and identify the policy objectives being pursued;

• critically analyse the economic effects, including the trade effects, of the policy instruments employed;

• describe and analyse the limitations of applied welfare economics in guiding public policy;

• critically analyse the issue of world food security;

• explain the position of agriculture in the WTO;

• critically appraise the current proposals under negotiation;

• evaluate the newer issues in the WTO concerning the agri-food sector including trade and the environment, food safety, and multifunctionality; and

• synthesise the current policy issues in the agri-food sectors of the world economy.

The subject covers the following topics:

• the reasons for government intervention in the agricultural sector;

• the principal agricultural policy issues in Australia, the European Union, the United States and East Asia;

• the effects of these policies on international trade in agricultural products;

• agriculture on the GATT and the WTO - the built-in-agenda and the new issues being negotiated.

A two-hour end-of-semester examination (60%), a mid-semester test (20%) and one assignment of up to 3000 words (20%).