| The objective of this study is to estimate the impact of selected trade barriers (tariff and nontariff) on the flow of corn among the United States and major exporting and importing countries. The Producer Subsidy Equivalent (PSE) was used as an aggregate measure of tariff and nontariff barriers. A reactive programming model was developed to estimate the world equilibrium trade volumes, international prices, and international trade patterns, simultaneously in order to investigate the competitive position of the United States versus other major exporting countries in the world corn market.; Four general international trade situations were analyzed. The first group analyzed the world corn market (Base Model) without removal of PSEs in order to reflect current market conditions. In this group, the world trade was 3.78 percent higher than the actual exports. The second group assumed a world wide reduction in PSEs. For all models in this group, the share of the world corn market held by the United States was reduced while world trade increased. The third group assumed a reduction in PSEs by specific category in a selected major exporting country. In this group, the world trade increased in all cases with the exception of situation in which the United States reduced its PSEs by 74 percent. In this case, world trade declined by 7.95 percent. The fourth group assumed a reduction in PSEs by specific category in a selected major importing country. This resulted in an increase in the total world trade. In total, 13 different models were developed and analyzed by a comparison of optimal solutions with the actual data and the base model.; Reduction in PSEs resulted in decreases in the corn market share of the U.S. even though the U.S. still maintained its leadership role in the corn market. However, the southeast region of the United States, particularly Mississippi, is a deficit region in regard to corn production and could be negatively impacted by world wide trade liberalization. |
