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Policy Position Paper

Policy Position Paper. Write for your audience: Congressman or Senator Farm organization policy committee State the policy position Provide background information as to why it is a problem Use economic theory & facts to show why your position is obviously right

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Policy Position Paper

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  1. Policy Position Paper • Write for your audience: • Congressman or Senator • Farm organization policy committee • State the policy position • Provide background information as to why it is a problem • Use economic theory & facts to show why your position is obviously right • Do not use outdated idealism – Agrarian or Jeffersonian ideals – Deal in Facts not Myths 18

  2. Policy Position Paper • Write in bullet or outline form • Use bold text on left margin to indicate topic • Separate text into following headings • Policy Option: state what the policy is and what you want from the decision maker to do (for or against) • Background or Situation: provide information to explain the current situation, what is the problem, what caused the problem, how is your group affected, etc. • Justification: use economic theory, facts, and persuasive logic to make the decision maker clearly see that your position is correct and the only logical alternative – never state your opinion, they are more powerful than you, as you are asking for their support • Double space or 1.5 space, use 10 or 12 pt font and wide margins 1” – Lots of White Space on the Page

  3. Trade Policy and FAS • Role of Foreign Agricultural Service in USDA • Help ag exporters develop and maintain new markets P TD2 TD1 DD Q/yr

  4. Barriers to Trade • Import Tariff • Export Subsidies • Export Embargo • Import Quotas • Exchange Rate Distortions • Variable Levy • Technical Restrictions

  5. Justifications for Barriers to Trade • Protect domestic (infant) industry • Protect national security • Maintain domestic farm programs • (Section 22 in Ag. Adjust Act 1933) • Protect against painful adjustment • Protect national health • Retaliation against policies • Improve balance of payments • Generate revenue (export tariffs)

  6. Trade Model Free Trade P P P Supply0 Supply0 S Export0 PFT T D0 Dom D0 Export D0 Dom D0 Q/yr QT0 Q/yr QD0 QS0 Q/yr QD0 QS0 Exporter Trade Sector Importer

  7. Import Quota P P P Supply0 Supply0 Quota1 S Export0 PQT PFT PQT Dom D0 Export D0 Dom D0 Q/yr QT0 Q/yr QD0 QS0 Q/yr QD0 QS0 Exporter Trade Sector Importer

  8. Import Tariff P P P Supply0 Supply0 S Export0 PT T PFT PT Dom D0 Export D0 Dom D0 Q/yr QT0 Q/yr QD0 QS0 Q/yr QD0 QS0 Exporter Trade Sector Importer

  9. Quota to a Tariff Rate Import Quota P P P Supply0 Supply0 Quota1 S Export0 PQT PFT PQT Dom D0 Export D0 Dom D0 Q/yr QT0 Q/yr QD0 QS0 Q/yr QD0 QS0 Exporter Trade Sector Importer

  10. Export Subsidy P P P Supply0 Supply0 S Export0 SE-Sub0 PFT S Dom D0 Export D0 Dom D0 Q/yr QT0 Q/yr QD0 QS0 Q/yr QD0 QS0 Exporter Trade Sector Importer

  11. Export Embargo P P P Supply0 Supply0 S Export0 PFT Dom D0 Export D0 Dom D0 Q/yr QT0 Q/yr QD0 QS0 Q/yr QD0 QS0 Exporter Trade Sector Importer

  12. P P P Supply0 Supply0 S Export0 PFT Dom D0 Export D0 Dom D0 Q/yr QT0 Q/yr QD0 QS0 Q/yr QD0 QS0 Exporter Trade Sector Importer

  13. P P P Supply0 Supply0 S Export0 PFT Dom D0 Export D0 Dom D0 Q/yr QT0 Q/yr QD0 QS0 Q/yr QD0 QS0 Exporter Trade Sector Importer

  14. P P P Supply0 Supply0 S Export0 PFT Dom D0 Export D0 Dom D0 Q/yr QT0 Q/yr QD0 QS0 Q/yr QD0 QS0 Exporter Trade Sector Importer

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