Order Code 98-253 ENR
Report for Congress
Received through the CRS Web
U.S. Agricultural Trade:
Trends, Composition, Direction, and Policy
Updated September 10, 2002
Charles Hanrahan
Senior Specialist in Agricultural Policy
Resources, Science, and Industry Division
Mary Dunkley
Research Production Assistant
Resources, Science, and Industry Division
Congressional Research Service ˜ The Library of Congress

U.S. Agricultural Trade:
Trends, Composition, Direction, and Policy
Summary
U.S. agricultural exports for FY2002 are forecast by the U.S. Department of
Agriculture at $53.5 billion. Agricultural imports are expected to reach $40.5
billion. The trade surplus, is projected to be $13.0 billion. Agricultural exports
account for about 25% of gross farm income and make a positive contribution to the
balance of payments. Exports of bulk commodities, e.g., soybeans, wheat and feed
grains, remain significant, but exports of high value products (HVPs), e.g., meats,
fruits and vegetables, are increasing. HVPs accounted for 65% of total U.S.
agricultural exports in 2001.
Leading markets for U.S. agricultural exports are Canada, Japan, Mexico, the
European Union, Taiwan, Korea and China. The United States dominates world
markets for corn, soybeans, wheat, and cotton. Most U.S. agricultural imports are
high value products. For some imports (grains, meats, horticultural products), similar
products are produced in the United States; production of other categories of imports
(bananas, coffee, cocoa) is very limited. The biggest import suppliers are Canada,
the European Union (EU), Mexico, Australia-New Zealand, Brazil, Colombia, and
Indonesia.
U.S. agricultural exports to Asian countries, Canada, and Mexico have shown
considerable growth. Financial and economic difficulties have slowed the growth of
exports to Asia since 1997, but FY2002 exports to Asian markets are estimated to
increase. Exports to China, and Southeast Asia also are estimated to increase in
FY2002.
Both the EU and the United States subsidize agriculture, but overall the EU out-
subsidizes the United States. Canada supports some sectors (e.g., dairy and poultry)
more than others. Australia provides less support to its agriculture. Single desk
sellers with monopoly powers operate wheat markets and markets for some other
commodities in Canada and Australia. Export subsidies are more important in the
EU than in the United States; border measures (tariffs) are more important in Canada
than in either the United States or the EU. Australia operates a mix of trade
measures. The United States is the dominant supplier of foreign food aid, followed
by the EU, Canada and Australia. The United States has the most diverse food aid
programs; others limit food aid to development assistance and emergencies.

Contents
U.S. Agricultural Exports, Imports and Trade Balance . . . . . . . . . . . . . . . . . 1
Shares of U.S. Production Exported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Commodity Composition of U.S. Agricultural Exports . . . . . . . . . . . . . . . . 9
Composition of U.S. Agricultural Exports:
Bulk, Consumer-Ready, and Intermediate . . . . . . . . . . . . . . . . . . . . . . 13
Major Country Markets for U.S. Agricultural Exports . . . . . . . . . . . . . . . . 17
World Market Shares
Crops . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
World Market Shares
Livestock and Dairy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Major U.S. Agricultural Imports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
U.S. Agricultural Imports by Country of Origin . . . . . . . . . . . . . . . . . . . . . 47
Growth in U.S. Agricultural Exports, 1988 - 2002F . . . . . . . . . . . . . . . . . . 51
Growth in U.S. Agricultural Exports to Asian Markets . . . . . . . . . . . . . . . . 55
Growth in Agricultural Exports to North and South America . . . . . . . . . . . 59
Market Development Programs in Selected Countries . . . . . . . . . . . . . . . . 63
Domestic Support and Export Subsidies
in the United States and the European Union . . . . . . . . . . . . . . . . . . . 77
List of Figures
Figure 1. U.S. Agricultural Exports and Imports, FY1988 - FY2002F . . . . . . . . 2
Figure 2. U.S. Agricultural Exports: Share of U.S. Production
Exported: 1980-89, 1990-94, 1998-2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Figure 3. U.S. Agricultural Exports of Major Commodities, FY 2001 . . . . . . . 10
Figure 4. U.S. Agricultural Exports, FY 1981, FY 1987-2001
Bulk, Consumer-Ready, and Intermediate Product Exports . . . . . . . . . . . . 14
Figure 5. Major Country Markets for U.S. Exports
FY2000 - FY2002F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Figure 6. Shares of World Exports of Wheat and Wheat Products, 2001/2002e
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Figure 7. Shares of World Exports of Rice, 2002e . . . . . . . . . . . . . . . . . . . . . . . 24
Figure 8. Shares of World Exports of Corn, 2001/2002e . . . . . . . . . . . . . . . . . . 26
Figure 9. Shares of World Exports of Soybeans, 2001/2002e . . . . . . . . . . . . . . 28
Figure 10. Shares of World Exports of Cotton, 2001/2002e . . . . . . . . . . . . . . . 30
Figure 11. Shares of World Exports of Beef and Veal, 2002F . . . . . . . . . . . . . . 34
Figure 12. Shares of World Pork Exports, 2002F . . . . . . . . . . . . . . . . . . . . . . . . 36
Figure 13. Shares of World Total Poultry Meat Exports, 1999 . . . . . . . . . . . . . 38
Figure 14. Shares of World Nonfat Dry Milk Exports, 2002e . . . . . . . . . . . . . . 40
Figure 15. Major U.S. Agricultural Imports by Commodity FY2001 . . . . . . . . 44
Figure 16. Major U.S. Agricultural Imports by Country of Origin
FY2000 - FY2002F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Figure 17. Growth in U.S. Agricultural Exports
FY1989 - FY2002F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Figure 18. Growth in Agricultural Exports to Asian Markets
FY 1988 - FY 2002F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Figure 19. Growth in Agricultural Exports to North and South America
FY 1988 - FY 2002F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Figure 20. Expenditures for Market Development, Selected Countries, 1998
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Figure 21. Producer Support Estimates (PSEs) in Selected in
OECD Countries (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Figure 22. Producer Support Estimates (PSEs) Selected Commodities
in the United States (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
Figure 23. Producer Support Estimates (PSEs) Selected Commodities
in the European Union (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
List of Tables
Table 1. U.S. Agricultural Exports and Imports, FY 1988 – FY2002F . . . . . . . . 3
Table 2. U.S. Agricultural Exports: Shares of U.S. Production
Exported 1980-89, 1990-94, 1995-2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Table 3. U.S. Agricultural Exports of
Major Commodities, FY2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Table 4. U.S. Agricultural Exports, FY 1981, - FY1987- 2001:
Total, Bulk, Consumer-Ready, and Intermediate Product Exports . . . . . . . 15
Table 5. Major Country Markets for U.S. Agricultural Exports,
FY2000 - FY2002F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Table 6. Shares of World Exports of Wheat and Wheat Products (%), 1992/93 -
2001/2002e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Table 7. Shares of World Exports of Rice (%), 1992 - 2002e . . . . . . . . . . . . . . 25
Table 8. Shares of World Exports of Corn (%), 1991/92 - 2001/2002e . . . . . . . 27
Table 9. Shares of World Exports of Soybeans (%), 1991/92 - 2001/2002e . . . 29
Table 10. Shares of World Exports of Cotton (%), 1992/93 - 2001/2002e . . . . 31
Table 11. Shares of World Exports of Beef and Veal, (%) 1992 -2002F . . . . . 35
Table 12. Shares of World Pork Exports (%), 1991 - 2002F . . . . . . . . . . . . . . . 37
Table 13. Shares of World Total Poultry Meat Exports (%), 1992 - 2002F . . . . 39
Table 14. Shares of World Nonfat Dry Milk Exports (%), 1992 - 2002e . . . . . . 41
Table 15. Major U.S. Agricultural Imports, FY2001 . . . . . . . . . . . . . . . . . . . . . 45
Table 16. U.S. Agricultural Imports by Country of Origin
FY2000 - FY2002F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Table 17. Growth in U.S. Agricultural Exports, . . . . . . . . . . . . . . . . . . . . . . . . . 53
Table 18. Growth in Agricultural Exports to Asian Markets, FY1989 - FY2002F
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Table 19. Growth in Agricultural Exports to North and South America, FY1988 -
FY2002F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Table 20. Expenditures for Market Development, Selected Countries, 1998 . . . 65
Table 21. Producer Support Estimates (PSEs) in Selected OECD Countries . . . 69
Table 22. Producer Support Estimates (PSE) in the United States by Commodity
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Table 23. Producer Support Estimates (PSEs) in the . . . . . . . . . . . . . . . . . . . . . 75
Table 24. U.S. and EU Government Spending on Agricultural Support, 1999-2000
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

U.S. Agricultural Trade:
Trends, Composition, Direction, and Policy
U.S. Agricultural Exports, Imports and Trade Balance
! U.S. agricultural exports in FY2002 are projected to be $53.5
billion, only $500 million greater than in FY2001.
! Exports are lower than expected because of strong export
competition and lower world prices for wheat, corn and rice.
! Agricultural imports are forecast at a record $40.5 billion in
FY2002, $10 billion more than in FY2001.
! High-value products – mainly fruits, vegetables, wine and malt
beverages, – and meats account for much of the increase in imports.

CRS-2
Figure 1. U.S. Agricultural Exports and Imports, FY1988 - FY2002F

CRS-3
Table 1. U.S. Agricultural Exports and Imports, FY 1988 –
FY2002F
($ billion)
Year
Exports
Imports
Balance
1988 35.3
21.0
14.3
1989
39.6
21.5
18.1
1990 40.2
22.6
17.7
1991 37.6
22
.6
15.0
1992
42.4
24.3
18.1
1993 42.6
24.4
18.1
1994
43.9
26.6
17.3
1995
54.6
29.9 24.7
1996
59.8
32.6 27.2
1997
57.3
35.8
21.5
1998
53.6
36.8 16.8
1999
49.1
37.3
11.8
2000
50.7
38.9
11.9
2001
52.7
39.0
13.7
2002F
53.5
40.5 13.5
Source: U.S. Department of Agriculture. Economic Research Service
F = Forecast



CRS-5
Shares of U.S. Production Exported
! Production from one-third of harvested acreage is exported.
! About 20% of the value of U.S. agricultural output is exported.
! In FY2000, 43.5% of the U.S. wheat crop was exported, while 20%
of the U.S. corn crop moved into world markets.
! The export shares of soybeans and cotton in FY2000 were 43% and
45% respectively.
! Beef exports have grown rapidly, but a relatively small percentage
of output (7% in FY2000) is exported.

CRS-6
Figure 2. U.S. Agricultural Exports: Share of U.S. Production
Exported: 1980-89, 1990-94, 1998-2000

CRS-7
Table 2. U.S. Agricultural Exports: Shares of U.S. Production
Exported 1980-89, 1990-94, 1995-2000
(percent)
Year
Wheat
Corn
Cotton
Soybeans1
Beef
1980-89 56.0
26.1
51.8
52.0
1.3
1990-94 48.1
21.4
41.4
40.6
4.0
1995
51.0
27.1
52.9
46.8
5.0
1996
56.0
23.6
44.5
40.8
5.3
1997
40.7
20.9
40.1
42.3
5.6
1998
40.8
16.0
53.1
46.0
6.0
1999
46.1
21.5
24.9
40.1
6.4
2000
43.5
20.1
45.3
43.1
7.1
Source: U.S. Department of Agriculture. Economic Research Service.
1 Includes soybeans, soybean meal and soybean oil.



CRS-9
Commodity Composition of U.S. Agricultural Exports
! The United States exports a wide range of agricultural products,
including both bulk commodities and high value products.
! Oilseeds (mainly soybeans) and oilseed products are the leading (by
value) commodity components of U.S. agricultural exports in
FY2001, followed by feed grains, meats, fruits, wheat, and
vegetables.

CRS-10
Figure 3. U.S. Agricultural Exports of Major Commodities, FY 2001

CRS-11
Table 3. U.S. Agricultural Exports of
Major Commodities, FY2001
Commodity
($Billion)
Oilseeds and Products
8.8
Feed Grains
5.2
Meats, excl. Poultry
4.8
Fruits, Juices, Nuts, and Preps.
4.6
Wheat and Prods
3.4
Vegetables/Preps.
3.0
Feeds/Fodder
2.7
Poultry/Prods.
2.5
Cotton
2.1
Tobacco
1.2
Source: U.S. Department of Agriculture. Economic Research Service.



CRS-13
Composition of U.S. Agricultural Exports:
Bulk, Consumer-Ready, and Intermediate

! Bulk agricultural exports include products like wheat, coarse grains,
and soybeans.
! Intermediate products have been processed to some extent and
include products like wheat flour, soybean oil, and feeds.
! Consumer-ready includes both processed products such as breakfast
cereals and products such as fresh fruits and vegetables.
! Since FY 1991, the total of high-value intermediate and consumer-
ready products has exceeded the value of bulk agricultural exports.
! In FY 2001, high-value exports accounted for 65% of total U.S.
agricultural exports, bulk for 35%.

CRS-14
Figure 4. U.S. Agricultural Exports, FY 1981, FY 1987-2001
Bulk, Consumer-Ready, and Intermediate Product Exports

CRS-15
Table 4. U.S. Agricultural Exports, FY 1981, - FY1987- 2001:
Total, Bulk, Consumer-Ready, and Intermediate Product Exports
($ thousands)
% of
Consumer-
% of
Inter-
% of
Year
Total
Bulk
Total
Ready
Total
mediate
Total
1981
43,782,436 30,484,758
69.6
5,498,271
12.6
7,799,407
17.8
1987 27,877,509 14,650,403
52.6
5,951,124 21.3
7,275,982 26.1
1988 35,336,356 19,360,317
54.8
7,360,473 20.8
8,615,566 26.1
1989 39,522,729 22,295,358
56.4
8,352,422 21.1
8,874,949 24.4
1990 40,122,362 21,785,568
54.3
9,766,813 24.3
8,569,981 22.5
1991 37,534,222 17,610,418
46.9 11,431,178 30.5
8,492,626 21.4
1992 42,315,630 19,556,582
46.2 13,521,311 32.0
9,237,737 22.6
1993 42,454,370 18,913,731
44.6 14,626,124 34.5
8,914,515 21.8
1994 43,475,000 17,967,000
41.3 16,167,000 37.2
9,340,000 21.0
1995
54,629,263 24,452,852
44.7
18,717,630
34.3
11,458,781
21.5
1996
59,794,787 28,792,244
48.1
20,047,654
33.5
10,954,889
21.0
1997
57,294,470 24,247,161
42.3
20,787,711
36.3
12,259,598
21.4
1998
53,648,322 20,922,324
39.0
20,561,238
38.2
12,164,761
22.6
1999
49,108,033 18,579,481
38.0
19,830,681
40.4
10,697,870
21.8
2000
50,743,841 18,572,785
37.0
21,396,153
42.2
10,774,903
21.2
2001
52,734,131 18,458,347
35.0
22,431,372
42.5
11,844,412
22.5
Source: U.S. Department of Agriculture. Foreign Agricultural Service.



CRS-17
Major Country Markets for U.S. Agricultural Exports
! Canada is forecast to supersede Japan as the leading country market
for U.S. agricultural exports FY2002.
! Mexico, which with Canada is a U.S. partner in the North American
Free Trade Agreement, is the 3rd largest market for U.S. agricultural
products.
! The EU is now the 4th largest U.S. export market.
! South Korea and Taiwan are in fifth and sixth place. U.S. exports
to Asian countries are expanding but have yet to rebound to pre-
1997 levels.
! China, now a member of the World Trade Organization, is the 7th
largest market for U.S. farm products.

CRS-18
Figure 5. Major Country Markets for U.S. Exports
FY2000 - FY2002F

CRS-19
Table 5. Major Country Markets for U.S. Agricultural Exports,
FY2000 - FY2002F
($ billion)
Country
2000
2001
2002F
Japan
9.2
8.9
8.2
Canada
7.5
8.0
8.5
Mexico
6.0
7.3
7.1
EU
6.2
6.3
6.5
Korea, Republic of
2.6
2.5
2.7
Taiwan
2.0
2.0
2.0
China
--
1.9
1.7
Hong Kong
--
1.2
1.0
Source: U.S. Department of Agriculture. Economic Research Service.
F = Forecast



CRS-21
World Market Shares
Crops

! Wheat: Although it has lost market share over the last decade, the
United States remains the major supplier of wheat and wheat
products to the world market, with a share of 25% in 2001/2002.
Canada, Australia, Argentina, and the EU are major competitors in
this market.
! Rice: Thailand (29.5%) is the world’s dominant rice exporter; but
India (18.3%) has emerged as a major low-cost producer.
! Corn: The United States provided 66% of world corn exports in
2002 and Argentina, 12.5%; China, whose domestic demand for
corn is growing, was an important exporter in 2001/2002.
! Soybeans: In 2001/2002, the U.S. share of this market was 49%;
Brazil and Argentina, who export more soybean meal and oil than
beans, together hold more than 40% of the world soybean market.
! Cotton: U.S. cotton exports were 38% of world exports in
2001/2002. Uzbekistan, a Republic of the former Soviet Union, and
Franc-Zone West African countries account for 11.5% and 12.3%
respectively of world cotton exports.

CRS-22
Figure 6. Shares of World Exports of Wheat and Wheat Products, 2001/2002e

CRS-23
Table 6. Shares of World Exports of Wheat and Wheat Products (%), 1992/93 - 2001/2002e
Country
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
1999/00
2000/01F
2001/2002e
Argentina
6.5
4.5
8.1
5.6
9.7
9.2
9.0
9.8
11.0
10.2
Australia
8.4
12.7
8.0
13.0
17.5
15.0
15.8
15.2
16.1
16.3
Canada
19.3
18.7
21.6
18.1
17.5
20.5
14.1
17.2
16.8
15.3
European Union
21.0
20.0
17.4
13.4
17.2
13.6
14.3
15.5
14.7
9.3
Kazakhstan, Rep.
5.1
5.5
3.6
3.2
2.2
3.4
2.2
5.8
3.5
3.2
United States
33.0
33.0
33.4
36.0
26.1
27.0
28.4
20.1
26.9
24.6
Rest of World
6.6
5.6
7.9
10.7
10.3
11.3
16.3
10.4
11.0
21.1
Source: U.S. Department of Agriculture. Foreign Agricultural Service. July-June marketing year.
e = estimate
– = Less than 0.1%.

CRS-24
Figure 7. Shares of World Exports of Rice, 2002e

CRS-25
Table 7. Shares of World Exports of Rice (%), 1992 - 2002e
Country
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002e
China
6.6
9.2
9.2

1.3
5.0
13.5
10.8
12.9
7.4
6.1
India
4.0
4.2
3.6
20.0
18.0
11.1
16.9
11.0
6.3
7.8
18.3
Pakistan
9.6
6.3
8.5
7.6
8.5
9.4
7.2
7.4
8.9
9.7
5.1
Thailand
34.0
36.2
28.4
28.3
26.8
27.7
23.0
26.8
28.7
30.3
29.5
United States
14.9
17.7
17.0
14.6
13.3
12.2
11.5
10.6
12.5
10.6
11.4
Vietnam
13.6
11.8
13.5
11.0
15.4
17.6
13.6
18.3
14.7
14.2
12.2
Rest of World
17.4
14.6
19.8
18.5
16.7
17.0
14.3
15.1
16.0
20.0
17.4
Source: U.S. Department of Agriculture. Foreign Agricultural Service. Calendar year.
e = estimate
– = Less than 0.1%

CRS-26
Figure 8. Shares of World Exports of Corn, 2001/2002e

CRS-27
Table 8. Shares of World Exports of Corn (%), 1991/92 - 2001/2002e
Country
1991/92
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
1999/00
2000/01 2001/2002e
Argentina
9.4
7.7
7.5
8.5
10.6
15.4
20.3
11.4
12.1
16.0
12.5
China
15.9
20.3
20.9
2.0

5.9
9.8
4.9
13.6
9.5
8.8
South Africa, Rep.
1.3
0
5.3
3.5
2.5
2.4
1.6
1.2
1.1
2.0
1.7
United States
65.0
67.1
58.8
82.4
79.8
70.2
59.9
75.7
67.4
63.1
66.2
Rest of World
8.4
4.9
7.5
3.6
7.1
6.1
8.4
6.8
5.8
9.4
11.0
Source: U.S. Department of Agriculture. Foreign Agricultural Service. October-September marketing year.
e = estimate
– = Less than 0.1%.






































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































CRS-28
Figure 9. Shares of World Exports of Soybeans, 2001/2002e

CRS-29
Table 9. Shares of World Exports of Soybeans (%), 1991/92 - 2001/2002e
Country
1991/92
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
1999/00
2000/01
2001/2002e
Argentina
11.3
8.1
10.9
7.8
6.9
2.0
8.0
8.4
8.8
13.4
13.1
Brazil
13.7
14.0
19.3
11.1
10.1
22.5
21.6
23.1
23.9
28.0
29.2
Paraguay
2.9
4.2
4.3
4.5
4.7
5.8
5.9
5.9
4.5
4.6
3.7
United States
66.0
70.2
56.9
70.9
73.0
65.0
58.6
56.6
56.8
49.3
49.0
Rest of World
6.1
3.5
8.6
5.7
5.3
4.7
5.9
6.0
6.0
4.7
5.0
Source: U.S. Department of Agriculture. Foreign Agricultural Service. Marketing year.
e = estimate































































































































































































































































































































































































































































































































































































































CRS-30
Figure 10. Shares of World Exports of Cotton, 2001/2002e

CRS-31
Table 10. Shares of World Exports of Cotton (%), 1992/93 - 2001/2002e
Country
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
1999/00
2000/01 2001/2002e
Australia
6.6
6.3
4.7
5.3
8.9
10.2
12.8
11.8
12.9
11.1
Franc-Zone Africa
8.0
7.6
9.4
10.2
12.3
13.5
15.2
13.7
12.0
12.3
United States
20.5
25.7
33.0
27.9
25.6
28.1
18.3
24.8
25.6
37.7
Uzbekistan
21.5
21.7
17.2
16.4
17.0
17.1
16.1
15.0
12.9
11.5
Rest of World
39.0
37.5
34.8
40.2
36.2
31.2
37.6
34.7
35.5
27.9
Source: U.S. Department of Agriculture. Foreign Agricultural Service. Marketing year.
e = estimate



CRS-33
World Market Shares
Livestock and Dairy

! Beef: Australia and New Zealand together supply about 33% of
world beef exports. The United States’ share of world beef exports
was 17% in 2002. The EU, Brazil and Argentina are the other
major suppliers of beef to global markets.
! Pork: In 2002, the U.S. share of world pork markets is about 18%;
the EU’s share is around 36%. Canada is the second major supplier
of pork to world markets, with a share of 20% in 2002.
! Poultry: The United States is the world’s leading supplier of poultry
meat (45% in 2002). Brazil has become the 2nd leading supplier
with 23% in 2002.
! Dairy Products: In 2002, Australia and New Zealand were the
leading suppliers of NFD to world market followed by the United
States and in EU.

CRS-34
Figure 11. Shares of World Exports of Beef and Veal, 2002F

CRS-35
Table 11. Shares of World Exports of Beef and Veal, (%) 1992 -2002F
Country
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001P
2002F
Argentina
5.5
5.2
7.3
10.1
9.2
8.2
5.7
6.2
6.1
2.8
3.8
European Union
21.2
20.6
21.1
17.9
17.8
16.1
12.7
14.8
11.1
9.3
10.6
United States
11.2
10.9
14.3
15.9
16.6
17.3
18.6
19.0
19.3
17.9
16.6
Brazil
8.4
7.7
7.5
5.6
5.3
4.1
5.5
8.1
8.5
13.0
13.3
Australia
23.0
23.0
22.8
21.0
19.9
21.2
23.9
22.1
23.0
24.3
23.8
New Zealand
8.2
8.8
9.1
9.7
10.1
9.1
9.2
7.7
8.3
8.6
8.8
Rest of World
19.3
19.9
13.6
15.5
15.5
24.0
24.1
22.1
23.7
24.1
23.1
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
P = Preliminary
F = Forecast

CRS-36
Figure 12. Shares of World Pork Exports, 2002F

CRS-37
Table 12. Shares of World Pork Exports (%), 1991 - 2002F
Country
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001P
2002F
Canada
13.9
17.8
17.7
14.1
15.4
14.5
14.9
15.5
16.8
19.3
20.4
20.2
United States
6.7
11.2
11.5
11.4
15.4
17.2
16.2
20.0
17.6
17.1
19.8
18.1
European Union
32.2
28.5
34.2
41.0
30.5
27.3
34.4
35.9
42.0
43.0
34.6
35.6
Hungary
7.5
4.2
2.6
1.9
2.3
4.0
4.8
3.9
4.0
4.2
3.4
3.4
Poland
1.1
.8
.6
1.2
3.5
6.2
10.1
7.9
7.1
4.7
2.8
2.9
China, Peoples Republic of
14.0
7.1
8.7
8.5
10.0
7.5
5.6
5.1
2.3
2.1
3.9
3.4
Taiwan
16.9
18.4
16.5
15.6
16.4
15.2
2.5
--
--
--
--
--
Rest of World
7.7
12.0
8.2
6.3
6.5
8.1
11.5
11.7
10.2
10.6
16.1
16.4
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
P = Preliminary
F = Forecast
– = Less than 0.1%

CRS-38
Figure 13. Shares of World Total Poultry Meat Exports, 1999

CRS-39
Table 13. Shares of World Total Poultry Meat Exports (%), 1992 - 2002F
Country
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001P
2002F
United States
23.1
36.2
39.6
44.2
45.2
49.5
42.1
46.1
46.1
45.3
44.6
Brazil
11.6
15.1
13.3
9.8
11.3
13.9
12.9
15.4
16.7
20.0
21.6
European Union
46.6
22.4
20.9
16.6
14.8
19.3
20.5
19.3
17.6
15.3
14.2
China (PRC)
4.7
6.2
6.8
7.4
7.2
7.0
6.5
7.2
8.1
7.3
7.3
Rest of World
10.8
12.9
10.8
11.0
10.4
10.3
12.6
12.0
11.5
12.1
12.3
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
P = Preliminary
F = Forecast

CRS-40
Figure 14. Shares of World Nonfat Dry Milk Exports, 2002e

CRS-41
Table 14. Shares of World Nonfat Dry Milk Exports (%), 1992 - 2002e
Country
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002e
Canada
3.3
1.9
3.8
4.0
4.7
3.0
3.9
3.8
2.8
4.5
3.8
United States
14.5
15.9
14.4
14.9
4.6
11.9
12.0
20.3
12.5
15.3
16.8
European Union
39.8
33.6
21.1
35.1
23.8
24.0
16.9
20.6
24.1
14.2
16.5
Poland
6.7
14.5
13.1
8.9
11.0
11.4
11.7
7.8
7.5
9.7
9.6
Australia
13.5
15.0
20.6
17.1
23.9
20.8
23.0
22.5
21.4
22.9
19.8
New Zealand
18.3
13.1
17.7
15.1
21.5
21.9
22.7
19.2
17.9
19.9
18.9
Rest of World
3.9
6.0
9.3
4.9
10.9
7.0
9.8
5.8
13.8
13.5
14.6
Source: U.S. Department of Agriculture. Foreign Agricultural Service.
e = estimate



CRS-43
Major U.S. Agricultural Imports
! Most U.S. agricultural imports are high value products.
! Some imports, such as vegetables, fruits, meats, and live animals,
are also produced in the United States.
! Other imports, such as coffee, bananas, and cocoa are not produced
in the United States.
! Horticultural products (fruits, nuts, vegetables and preparations)
have been the largest component of imports, followed by wine and
malt beverages, and meats.

CRS-44
Figure 15. Major U.S. Agricultural Imports by Commodity FY2001

CRS-45
Table 15. Major U.S. Agricultural Imports, FY2001
($ billions)
Commodity
FY 2001 Imports
Fruits and Nuts
5.3
Vegetables & Preps
5.2
Wine and Malt Beverage
4.5
Red Meats
4.1
Animals
2.2
Coffee
1.8
Oilseeds and Products
1.7
Dairy Products
1.7
Sugar and Products
1.6
Cocoa
1.4
Nursery and cut flowers
1.2
Bananas
1.2
Source: U.S. Department of Agriculture. Economic Research Service.



CRS-47
U.S. Agricultural Imports by Country of Origin
! Canada, the European Union, and Mexico are the major suppliers of
U.S. agricultural imports.
! Australia, New Zealand, Brazil, Colombia and Indonesia are also
major import suppliers.

CRS-48
Figure 16. Major U.S. Agricultural Imports by Country of Origin
FY2000 - FY2002F

CRS-49
Table 16. U.S. Agricultural Imports by Country of Origin
FY2000 - FY2002F
($ billions)
Country
2000
2001
2002F
Canada
8.5
9.5
9.8
European Union
8.0
7.9
8.1
Mexico
5.0
5.3
5.2
Oceania*
2.7
3.1
3.0
Brazil
1.2
1.0
1.0
Colombia
1.2
1.0
0.9
Indonesia
1.0
0.9
0.8
Source: U.S. Department of Agriculture. Economic Research Service.
F = Forecast
*Australia, New Zealand, and Papua New Guinea.



CRS-51
Growth in U.S. Agricultural Exports, 1988 - 2002F
! Asian markets for U.S. agricultural exports grew substantially from
1988-1996. Growth in farm exports to Asia have slowed
considerably since Asia’s 1997 financial crisis.
! U.S. agricultural exports to the European Union grew relatively
slowly during the 1990s. FY2002 U.S. farm exports to the EU are
forecast to be 30% less than in FY1996.
! Agricultural exports to the Former Soviet Union are 1/3 of these
value in 1992.
! Agricultural exports to Latin America, including Mexico, and to
Canada have grown rapidly during the 1990’s, because of
geographic proximity, NAFTA and other factors.
F = Forecast

Figure 17. Growth in U.S. Agricultural Exports
FY1989 - FY2002F

CRS-53
Table 17. Growth in U.S. Agricultural Exports,
FY1989 - FY2002F
($billion)
Former
European
Latin
Year
Asia
Soviet
Canada
Union
America1
Union
1989 18.674
6.539
5.439
3.299
2.179
1990 18.174
6.815
5.155
3.006
3.715
1991 16.094
6.776
5.499
1.758
4.409
1992 17.782
7.193
6.438
2.704
4.812
1993 17.832
7.022
6.883
1.561
5.220
1994
17.272
6.857
7.309
1.497
5.303
1995
24.199
8.493
8.178
1.168
5.890
1996 26.018
9.180
9.991
1.666
6.004
1997
23.873
8.997
10.020
1.593
6.620
1998
19.668
8.844
11.348
1.456
7.022
1999
18.468
6.960
10.502
0.816
6.957
2000
19.9
5.9
10.3
1.4
7.6
2001
20.1
6.3
11.6
1.0
8.0
2002F
19.5
6.5
11.7
0.9
8.5
Source: U.S. Department of Agriculture. Economic Research Service.
F = Forecast
1 Including Mexico



CRS-55
Growth in U.S. Agricultural Exports to Asian Markets
! Japan is the United States 2nd largest agricultural export market.
A continuing recession is slowing Japan’s demand for U.S. farm
exports.
! Rapid income growth in Southeast Asia stimulated demand for
U.S. agricultural exports in the 1990s. Resumption of economic
growth since 2000 is fueling increased demand for U.S. products.
! U.S. agricultural exports to China grew during the 1990s but
fluctuated considerably. U.S. exports which declined in 1999 as
China increased domestic production of grains and cotton, are
trending up.
! Agricultural exports to South Asia are forecast to increase
substantially in FY2002.

CRS-56
Figure 18. Growth in Agricultural Exports to Asian Markets
FY 1988 - FY 2002F

CRS-57
Table 18. Growth in Agricultural Exports to Asian Markets,
FY1989 - FY2002F
($billion)
Southeast
Year
Japan
South Asia
China
Asia
1989 8.148
.975
1.161
1.496
1990 8.155
1.184
0.723
0.909
1991 7.736
1.239
0.375
0.668
1992 8.383
1.470
0.536
0.690
1993 8.461
1.551
0.641
0.322
1994
9.281
1.803
0.560
0.884
1995
10.546
2.605
0.801
2.434
1996
11.882
3.386
0.730
1.828
1997
10.713
3.136
0.728
1.774
1998
9.469
2.288
0.626
1.514
1999
8.940
2.202
0.500
1.012
2000
9.5
2.6
0.4
1.5
2001
8.9
2.9
0.6
1.9
2002F
8.2
2.8
1.1
1.7
Source: U.S. Department of Agriculture. Economic Research Service.
F = Forecast



CRS-59
Growth in Agricultural Exports to North and South America
! Growth in U.S. agricultural trade with Canada and Mexico,
NAFTA trading partners, has been particularly strong.
! Farm export to Latin American markets resumed growth in
FY2000.
! U.S. agricultural exports to Canada are forecast to reach $8.5
billion in FY2002.
! U.S. agricultural export to Mexico are expected to be $7.1 billion
in FY2002.

CRS-60
Figure 19. Growth in Agricultural Exports to North and South America
FY 1988 - FY 2002F

CRS-61
Table 19. Growth in Agricultural Exports to North and South
America, FY1988 - FY2002F
($ billion)
Latin America ex.
Year
Canada
Mexico
Mexico
1988 2.675
1.973
1.726
1989 2.682
2.179
2.757
1990 2.491
3.715
2.666
1991 2.615
4.409
2.885
1992 2.762
4.812
3.676
1993 3.223
5.220
3.660
1994
3.119
5.303
4.166
1995
4.503
5.890
3.733
1996 4.968
6.004
5.023
1997
4.907
6.620
5.077
1998
5.407
7.022
5.956
1999
4.827
6.957
5.675
2000
4.1
7.6
6.2
2001
4.3
8.0
7.3
2002F
4.6
8.5
7.1
Source: U.S. Department of Agriculture. Economic Research Service.
F= Forecast



CRS-63
Market Development Programs in Selected Countries
! Most major agricultural exporting countries have programs to
promote agricultural exports and develop markets. Programs
include consumer promotions, market research, technical
assistance, and trade servicing.
! 52% of the funds for U.S. market development programs are from
the Federal Government; and 48% from commodity groups, trade
associations, or firms.
! European Union countries operate market development/export
promotion programs funded by mandatory producer levies (59%
in 1998) and national budgets (41% in 1998).
! In Australia and especially New Zealand, where less direct
government funding is provided, most agricultural export
promotion is carried out by commodity marketing boards, trade
associations, and private firms.

CRS-64
Figure 20. Expenditures for Market Development, Selected Countries, 1998

CRS-65
Table 20. Expenditures for Market Development, Selected
Countries, 1998
($ millions)
Funding
Country
Total
Government
%
Industry
%
EU Countries
378.8
156.2
41.2
222.6
58.8
United States
286.9
149.2
52.0
137.7
48.0
Australia
109.9 0.3
0.3
109.6
99.7
New Zealand
355.4
8.6
2.4
346.8
97.6
Source: Foreign Agricultural Service.



CRS-67
Producer Support Estimates (PSEs)
in Selected OECD Countries

! PSEs measure assistance to producers in terms of the value of
monetary transfers generated by agricultural policy. Transfers are
paid either by consumers or by taxpayers in the form of market
price support, direct payments or other support. They are a
broader measure of support than direct government subsidies
alone. PSEs can be expressed in money terms in aggregate or per
unit of production, or in percentage terms.
! PSE’s vary considerably among OECD countries.
! Australia with 4% is among the lowest, while Korea at 64% and
Japan at 59% are among the highest.
! The EU’s PSE equals about one-third, and the United States’
about one-fifth, of the value of total agricultural production.

CRS-68
Figure 21. Producer Support Estimates (PSEs) in Selected in
OECD Countries (%)

CRS-69
Table 21. Producer Support Estimates (PSEs) in
Selected OECD Countries
(percent)
Country
1986-88
1999-2001
1999
2000
2001P
Australia
9
5
6
4
4
EU
42
36
39
34
35
Japan
62
60
61
61
59
Korea
70
66
66
67
64
U.S.
25
23
25
22
21
Source: OECD 2002
P = provisional



CRS-71
Producer Support Estimates (PSEs) in
the United States and the European Union

! The PSE for all agricultural products in the EU declined from
42% to 36% from 1986-88 to1999-2001, and was 35% in 2001.
! The PSE for all agricultural products in the United States declined
from 25% in 1986-88 to 21% in 2001.
! Products most heavily supported in the EU are beef and veal,
sugar, poultry, milk, wheat, and rice.
! Products most heavily supported in the United States are milk,
sugar, wheat and rice.



















CRS-72
Figure 22. Producer Support Estimates (PSEs) Selected Commodities
in the United States (%)

CRS-73
Table 22. Producer Support Estimates (PSE) in the United
States by Commodity
(percent)
1986-88
Products
1999-2001
1999
2000
2001p
(Average)
Wheat
49 46
50
48 40
Corn
38
31
34
33 26
Rice
52
41
37
40 47
Oilseeds
8
26
24
27 25
Sugar
58 56
68
50 48
Milk
60 51
56
45 51
Beef and Veal
6
4
4
4
5
Pork
4 4
4
4 4
Poultry
13 4
4
4 4
All Products
25 23
25
22 21
Source: Organization for Economic Cooperation and Development, 2002.
p = provisional

CRS-74
Figure 23. Producer Support Estimates (PSEs) Selected Commodities
in the European Union (%)

Table 23. Producer Support Estimates (PSEs) in the
European Union
(percent)
1986-88
Products
1999-2001
1999
2000p
2001p
(Average)
Wheat
52 48
55
46
44
Corn
52 40
43
41
37
Rice
55 24
16
11
43
Oilseeds
59
39
35
42
40
Sugar
60 52
60
50
46
Milk
57 44
51
43
40
Beef and Veal
59
84
83
78
91
Pork
7 25
37
19
20
Poultry
14
43
31
53
46
All Products
42 36
39
34
35
Source: Organization for Economic Cooperation and Development, 2002.
P = provisional



CRS-77
Domestic Support and Export Subsidies
in the United States and the European Union

! The Governments of both the United States and the European
Union provide income support to farmers and subsidize
agricultural exports. EU direct subsidies in 1998 were more than
4 times larger than direct U.S. subsidies; in 1999 EU subsidies
were a little over 2 times as large.
! In the United States, domestic support and export subsidies are
concentrated on wheat, rice, feed grains, and cotton.
! U.S. support increased by 80% in 1999 because of a large
emergency assistance program for farmers and because low prices
triggered increased outlays for marketing assistance and loan
deficiency payments.
! The European Union provides domestic support and export
subsidies to a broader range of products including grains, sugar,
oils and fats, dairy products, meat, poultry and eggs, and fruits and
vegetables.

CRS-78
Table 24. U.S. and EU Government Spending on Agricultural
Support, 1999-2000
($ billion)
European Union
1999
2000
2001e
2002e
Export Subsidies a
5.984
5.283
3.396
3.328
Domestic Support b
32.660
29.119
29.720
34.443
Total
38.644
34.402
33.116
37.771
United States
1999
2000
2001
2002e
Export Subsidies c
0.390
0.414
0.157
1.037
Domestic Support d
18.272
18.338
24.945
17.206
Total
18.662
18.702
25.102
18.243
Source: U.S. Dept. of Agriculture and Commission of the European Union.
e=estimate
a EU export subsidies include export refunds, but exclude food aid.
b EU domestic support includes expenditures for intervention purchasing and other price support
measures, production and processing subsidies, set-aside and income support, monetary
compensatory amounts, and stock depreciation.
c U.S. export subsidies include net outlays of the Commodity Credit Corporation for the Export
Enhancement Program, Dairy Export Incentive Program, Export Credit Guarantee
Programs, and the Market Access Program. Foreign food aid is excluded.
d U.S. domestic support includes net CCC outlays, including 1999 emergency assistance, interest
payments, and operating expenses, minus CCC export outlays. Net costs of crop insurance
are included. Conservation Reserve Program spending is excluded.

CRS-79
Agricultural and Trade Policies in the United States and the European Union
United States
European Union
Domestic Support
Producers of wheat, feed grains, upland cotton, rice and oilseeds are eligible for
Agricultural support has been based primarily on market price support
production flexibility contracts entitling them to fixed annual payments until
provided through institutional prices. For many commodities, these policies
2007. Payments are based on established acreage and yields. A few planting
have been operated together with measures to limit the volume of
restrictions apply and conservation rules must be observed. Holders of
production to which the price support applies. From 1993/1994 on, as part
contracts qualify for nonrecourse marketing assistance loans and loan
of the May 1992 reform of the Common Agricultural Policy (CAP), there
deficiency payments. Producers of soybeans and other oilseeds also are eligible
has been some substitution for market price support by direct payments.
for contract payments and nonrecourse marketing assistance loans and loan
deficiency payments.
For supported crops, direct payments are based on historical areas and
yields and are operated in conjunction with a land set-aside requirement.
Substantial emergency assistance was provided to U.S. farmers in 1998, 1999,
Oilseeds support is based on area payments.
2000 and 2001 to counter the effects of declining commodity prices and natural
disasters.
For livestock products, direct payments are based on fixed reference
numbers and for beef they are subject to limitations on stocking density.
Prices of milk and dairy products are supported by an administered minimum
Further price reductions, part of Agenda 2000 reform have further reduced
price for milk, CCC purchase of dairy products, tariffs and import quotas. Other
grain and meat prices and will be only partially compensated by increases in
livestock products are not supported by administered prices.
direct payments.
The price of sugar is supported above an administered minimum price by
controlling supply through a tariff import quota.
A counter-cyclical income support program for grain, cotton and oilseed
producers was included in the 2002 farm bill.

CRS-80
Agricultural and Trade Policies in the United States and the European Union
United States
European Union
Trade Measures
Import quotas for dairy and sugar are subject to conversion to tariff quotas
Trade restrictions in the form of variable import levies which kept imported
under the Uruguay Round Agreement on Agriculture
agricultural products at prices that are as high as EU internal prices were
converted to tariff quotas as the EU implemented the Uruguay Round
Export subsidies provided under the Export Enhancement Program (EEP)
Agreement on Agriculture.
and other commodity specific subsidies are subject to reduction under the
UR Agreement
Export restitutions or refunds are provided to traders to cover the difference
between internal EU commodity prices and world market prices. Export
Export market development programs, MAP and FMDP, assist producer groups,
restitutions are subject to reduction commitments negotiated in the Uruguay
associations, and firms with promotional and other activities.
Round Agreement on Agriculture.
The CCC makes credit guarantees available to private financial institutions
EU countries (but not the EU itself) operate market development and
who lend to countries that want to purchase U.S. agricultural exports.
export promotion programs funded by Government outlays and mandatory
producer levies. France, Netherlands, and Germany have the largest
The United States has negotiated free trade agreements with Canada and
programs devoted to promoting mainly exports of high value products.
Mexico which cover substantially all agricultural trade among FTA
signatories.
France, for example, assists with export financing through the Company
for International Trade Insurance (COFACE), which is majority held
independently. COFACE commercial risk coverage is usually less than 3
years, but longer terms are available in certain cases.
Several preferential trade arrangements have been concluded with former
European colonies in Africa, the Caribbean, and the Pacific. More recently,
some trade concessions for central and eastern European countries have
been negotiated.

CRS-81
Agricultural and Trade Policies in the United States and the European Union
United States
European Union
Food Aid
The United States is the world’s leading supplier of food aid. It provides more
The EU provides about 1/3 of world food aid.
than half of the global total.
EU food aid consists of two parts, EU aid and individual country bilateral
The United States provides food aid mainly through P.L. 480 also known as
programs. EU aid is distributed mainly through the United Nations’ World
the Food for Peace program. Wheat and wheat flour are the main commodities
Food Program; bilateral aid is distributed directly to receiving countries.
provided as food aid, but rice and vegetable oils are also important in P.L. 480
Bilateral food aid constitutes about 70% of the total of EU food aid. All EU
programs. Higher value products are made available in special feeding
food aid is provided as donations.
programs. Responsibility for implementing food aid programs is shared by
USDA and the U.S. Agency for International Development (AID).
Wheat is the predominant commodity in EU food aid; lesser amounts of
skim milk powder, vegetable oils, sugar and pulses are provided.
P.L. 480 food aid is provided on concessional terms (Title I) and as donations
(Titles II and III). Title I food aid is intended to help develop overseas markets;
Titles II and III are for humanitarian or developmental purposes.
Two other food aid programs are conducted under Section 416(b) of the
Agricultural Act of 1949 and the Food for Progress Act of 1985. The former
provides surplus CCC inventories as donations; the latter provides concessional
credit terms or commodity donations to support emerging democracies or
countries making free market economic reforms.

CRS-82
Agricultural and Trade Policies in Canada and Australia
Canada
Australia
Domestic Support
Agricultural policy involves a broad range of measures implemented
Both Commonwealth and State programs provide funds for farm
by both the Federal and Provincial Governments.
restructuring, rural development and research, and income-tax concessions.
Under the Rural Adjustment Scheme, the Commonwealth offers interest rate
Producers of grains and oilseeds receive assistance under a Federal-
subsidies on commercial loans for productivity improvements, short-term
Provincial income stabilization program. Assistance through
downturns, or reestablishment after leaving farming.
transport subsidies has been eliminated. The Canadian Wheat Board
(CWB) has an exclusive right to purchase wheat produced in
Excise taxes on diesel fuel used in off-road vehicles and machinery are
Manitoba, Saskatchewan, Alberta, and the Peace River Valley of British
refunded under the Diesel Fuel Rebate Scheme.
Columbia, and to export it or sell it domestically.
Producers of livestock receive support under the National Tripartite
The Commonwealth guarantees Australian Wheat Board loans used to
Stabilization Programs, funded by the Federal and Provincial Governments
finance advance payments to wheat producers.
and producers.
A large number of statutory marketing boards exist at the Commonwealth
Farmers can participate in the Net Income Stabilization Account (NISA)
and State levels. The purposes of these boards are to increase producer
program. Farmers set aside money in individual accounts, which is then
returns, stabilize prices, and assist with marketing.
matched by Federal and Provincial treasuries. Farmers can make
withdrawals when their incomes fall below their 5-year average returns
States impose supply controls on milk. Some States impose supply controls
after costs, or when their taxable incomes fall below a fixed level.
on eggs, sugar, and rice. Marketing arrangements operate in some States for
barley, sorghum, corn, rice, and tobacco.

CRS-83
Canada
Australia
Domestic Support
Supply management systems exist for several commodities, including milk,
poultry, and eggs. Marketing boards set producer prices and production
quotas for some commodities.
Provincial governments operate other, autonomous programs, often
through provincial marketing boards. About one-third of total budgetary
expenditure for Canadian agriculture is provided by Provincial
Governments.

CRS-84
Canada
Australia
Trade Measures
Import quotas apply to imports of certain products, particularly dairy,
Tariffs protect sugar, tobacco, and processed fruit and vegetables. A tariff-
poultry, and eggs, and are used in conjunction with supply management
rate quota applies to cheese imports from all countries except New Zealand
schemes for those products. The Uruguay Round Agreement required that
these quotas be converted to tariffs with some minimum access for imports
Local content restrictions apply to fruit juices and tobacco.
provided.
Manufacturing milk (milk used in the manufacturing of dairy products) is
A tariff rate quota on imports of boneless beef applies to imports from all
supported through export subsidies financed by levies on all domestic milk
countries except the United States and Mexico, Canada’s partners in
production.
NAFTA.
AWB Ltd., the privatized version of the Australian Wheat Board has
Canada agreed to gradually eliminate its tariffs on most U.S. agricultural
monopoly control of wheat exports. A Crown corporation is the sole
products under the bilateral free trade agreement with the United States. It
exporting authority for sugar in Queensland, the main sugar producing state.
reached a separate bilateral agreement with Mexico under the North
American Free Trade Agreement, which also requires a scheduled
The Commonwealth provides export credit for wheat exports and extends
elimination of tariffs on most agricultural products.
credit insurance. The Australian Wheat Board makes sales on credit terms.
The Government’s Export Finance and Insurance Corporation provides
The Federal Government guarantees export credit for wheat exports,
export insurance and insures credit sales by the Australian Wheat Board.
usually for 3 years or less. It is also responsible for debt of the Canadian
Wheat Board, which can borrow money to finance wheat sales.
Export promotion is provided primarily by commodity marketing boards and
associations; the Commonwealth Government provides only modest
Canada promotes exports, including agricultural exports, through the
assistance to promote agricultural exports.
Program for Export Market Development. Assistance is made available to
commodity associations. Some important commodity groups and
associations fund all are part of their own export market development
activities. Provincial Governments have modest export promotion
programs.

CRS-85
Canada
Australia
Food Aid
Canada is the third largest provider of food aid.
Australian food aid is provided mainly to meet disaster or emergency
situations. Australian food aid is provided both bilaterally and through the
Food aid is administered as part of Canada’s foreign aid program; the
U.N. World Food Program.
Canadian International Development Agency (CIDA) is responsible
for implementing the program. Food aid is donated and used to help
The main commodities provided under Australia’s food aid program have
been wheat, rice, and wheat flour. Other commodities include vegetable oils,
recipient countries reform their agricultural policies or to meet
peas, and biscuits.
humanitarian emergencies. In 1994, 60% of Canadian food aid was
distributed multilaterally, mainly through the U.N. World Food
Program.
Wheat and wheat flour make up the largest portion of Canadian food
aid. Non-grain products, especially canola (rapeseed) oil, pulses and
fish account for about a third.