High-Value Products. Growing U.S. and EC Competition in World Markets

摘要

The study examines competition between the U.S. and the European Community (EC) in world markets for high-value agricultural products (HVPs). A comparison of U.S. and EC export shares during 1970-87 shows that the EC, the world's leading exporter of high-value products, has successfully competed against the United States for a number of leading processed products including dairy products, meat, and flour. EC agricultural exports have benefited for many years from subsidies. The United States, with its plentiful supply of high-quality, low-priced inputs and efficient processing capacity has the potential for increasing its share of the HVP market. While U.S. policy changes authorized under the 1985 Farm Bill and the lower dollar have boosted U.S. HVP exports, future expansion will depend upon U.S. competitiveness and changes in foreign demand.