Farm income support with minimal trade distortions

David Blandford, Harry de Gorter, David Harvey

Research output: Contribution to journalArticlepeer-review

15 Scopus citations


The stalemate in the GATT negotiations on agriculture is due to US insistence on the elimination of all subsidies while the European Community and Japan demand the right to support farmers. This paper presents an alternative called 'production entitlement guarantees' (PEGs) that allow countries to satisfy farm support objectives yet minimize trade distortions. PEGs involve a limit on production receiving payments only. The removal of all other forms of trade-distorting market interventions is required such that consumers pay world market prices. PEGs would be negotiated and bound in the GATT and represent a politically acceptable method of supporting farm incomes.

Original languageEnglish (US)
Pages (from-to)268-273
Number of pages6
JournalFood Policy
Issue number3
StatePublished - Aug 1989

All Science Journal Classification (ASJC) codes

  • Food Science
  • Development
  • Sociology and Political Science
  • Economics and Econometrics
  • Management, Monitoring, Policy and Law


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