In-Class Assignment Class 5

Centennial College

Geopolitics, Trade and Development

INTL 703

February 5, 2024
In the realm of international agricultural trade, the policies enacted by the United States bear a

direct influence on the European Union's economic landscape. This brief exploration examines

three key U.S. agricultural policies and their impact on the EU, assessing whether they foster or

impede the principles of international free trade. From subsidies and biotechnology regulations

to trade agreements, these policies underscore the intricate interdependence between the

agricultural sectors of these major global players.

1. Farm Bill Subsidies – The U.S. Farm Bill includes subsidies for various crops,

influencing global commodity prices (Imhoff & Badaracco, 2019). The EU, being a

major agricultural producer, is directly affected by these subsidies.

 Encourage or Discourage International Free Trade? – These subsidies can

discourage international free trade as they distort market prices, making it difficult for

EU farmers to compete on a level playing field. The subsidies may lead to

overproduction and the dumping of U.S. agricultural products in the global market,

affecting the competitiveness of European farmers.

2. Biotechnology Regulations – The EU and the U.S. often differ in their approach to

biotechnology and genetically modified organisms (GMOs). The U.S. has more

permissive regulations, while the EU has stricter standards and labeling requirements for

GMOs.

 Encourage or Discourage International Free Trade – This can discourage

international free trade by creating barriers for U.S. agricultural products in the EU

market (Campbell, 2023). The differences in biotechnology regulations can lead to

 trade disputes and hinder the free flow of genetically modified crops and products,

impacting U.S. agricultural exports to the EU.

3. Tariffs and Trade Agreements – U.S. agricultural policies, especially those related to

tariffs and trade agreements, directly influence trade relations with the EU. Trade

negotiations, such as the Transatlantic Trade and Investment Partnership (TTIP) or other

bilateral agreements, shape the trade landscape (European Parliament, 2015).

 Encourage or Discourage International Free Trade – The outcome depends on the

specific terms of the agreements. If trade agreements are reached with favorable

terms for both parties, they can encourage international free trade by reducing tariffs

and trade barriers. However, if negotiations face challenges or protectionist measures

are imposed, it may discourage free trade and limit market access for agricultural

products.
 References

Campbell, M. (2023. December 18). The Landscape of Agricultural Biotechnology. Technology

Networks Genomics Research.

https://www.technologynetworks.com/genomics/articles/the-landscape-of-agricultural-

biotechnology-381536

European Parliament. (2015, February 24). The European Parliament and the TTIP. European

Parliament. https://www.europarl.europa.eu/news/en/press-room/20150224BKG25024/

the-european-parliament-and-the-ttip

Imhoff, D., & Badaracco, C. (2019, January 10). The farm bill: A citizen's guide. Island Press