This thesis examines the effects on demand, supply, imports, and prices of partial easing of sanitary and phytosanitary (SPS) barriers to trade in the U.S. market in the case of Mexican avocados. The SPS Agreement plays a role in the avocado market studied here through its implications for negotiations between countries that have not utilized the formal channels of the WTO for resolving disputes. A quarantine in place from 1914 until very recently banned entry of Mexican avocados into the U.S. market on grounds of risk of pest infestation. Since the early 1970s this quarantine has been a cause of dispute between the Mexican and U.S. governments, resulting in elaborate evaluations of possible pest risks and risk mitigation procedures that might be carried out. However, after the initiation of negotiations for the North American Free Trade Agreement (NAFTA) in 1991, the import ban was partially eased in 1995 allowing Mexico access to the Northeastern part of the U.S. during four winter months. After three years of successfully exporting without any pest outbreaks, Mexico requested increased access to an additional part of the U.S. market, which it was granted in 2001. This study develops a partial equilibrium trade model to investigate the effects that this increased access will have on the avocados markets. Hypothesized further increases in access are described, and their potential effects are evaluated as well. / Master of Science

Globally, China is the number one soybean importer, and the United States, Brazil, and Argentina are the top three soybean exporters. This research, based on the reverse residual demand model, developed and estimated a two-country partial equilibrium trade model to test who has stronger market power in the Chinese soybean import market. This two-country partial equilibrium trade model incorporates the U.S. residual soybean supply for China, the Chinese residual demand for U.S. soybeans, and the equilibrium condition, where the U.S. residual soybean supply equals the Chinese residual soybean demand. Data used in this research are monthly data from January 1999 to February 2005, 74 observations. Empirical results indicated that Chinese soybean importers have stronger market power relative to U.S. soybean exporters.This research also conducted the competitive analysis of the Chinese soybean import market by examining both annual and monthly data of Chinese soybean imports from the U.S. and South America (Brazil and Argentina). Results implied that the U.S. and South America are seasonal complementary soybean suppliers for China. Possible reasons include: 1) seasonal difference--the U.S. and South America have opposing growing seasons, i.e., different time periods to supply soybeans to markets; and 2) stronger market power of Chinese soybean importers–China's strategic choice, diversifying their soybean suppliers and reducing price increase risk, made the U.S. and South America complementary soybean suppliers to China.Additionally, this research compared the soybean export costs to China for the three countries. Results showed that Brazil has the greatest advantage for production costs, followed by Argentina and the U.S.; the U.S. has the greatest advantage for internal and international transportation and marketing costs, followed by Argentina and Brazil. In aggregate, the total soybean export costs for Brazil were the lowest and the export costs for Argentina were the highest, with U.S. costs between them.In terms of policy implications for the U.S. soybean industry facing strong competition from South America, we cannot expect that U.S. market share in the Chinese soybean import market can be expanded much. With the development of infrastructure in Brazil and Argentina, the U.S. advantage will become less and less. Therefore, if the U.S. soybean industry wants to keep its current position in the Chinese soybean import market, some governmental policy supports are still necessary.

Master of Science / Department of Agricultural Economics / Michael W. Woolverton / Globally, the majority of countries now use genetically modified (GM) soybeans to produce oil and meal for livestock and human consumption. Japan, however, uses only Non-GM soybeans for direct human consumption of which more than 80% are imported from the U.S., Canada, and China. This research used the inverse residual demand model to estimate a two-country partial equilibrium trade model to test the existence of market power in the Japanese Non-GM soybean import market. The two-country partial equilibrium trade model incorporated the U.S. residual Non-GM soybean supply for Japan, the Japanese residual demand for U.S. Non-GM soybeans, and the equilibrium condition, where the U.S. residual Non-GM soybean supply equals the Japanese residual Non-GM soybean demand. Monthly data from January 2003 to December 2007 were used for the analysis. Empirical results indicated that U.S. Non-GM soybean exporters have stronger market power than Japanese Non-GM soybean importers. The results also indicate that Japanese consumers are willing to pay higher prices for soybeans, tofu, natto, miso, and other all soy food products.