Gains from Trade and the Environment
This presentation, by CAPI Board Member Professor Richard Gray and former CAPI Special Advisor Ted Bilyea, helped set the stage for the CAPI “Dialogue on Trade and Sustainability of the North American Agriculture and Agri-food Sector”. It began by discussing how economics tell us how we normally gain from trade. However, this is only if there are no trade disruptions or environmental externalities that lead to the suboptimal allocation of resources. When there are trade distortions, from subsidies, tariffs or other trade sanctions, there are huge economic and environmental costs. Recent developments in trade between China and the U.S. are presented as an example where serious environmental degradation may result from these distortions.