Research Assignment Paper Example | Topics and Well Written Essays - 500 words

Assignment - Research Paper Example The US import of oats is almost 80% of the total world imports. World production is on constant decline from 55.9 million tonnes in 1960-61 to about 23.0 million tonnes in 2010-2011. Russia is the largest producer of oats in the world but does not export any as most of the oats is consumed domestically. (OATS: SITUATION AND OUTLOOK 2010) Trade of various good including agricultural commodities between Canada and US is governed by the free trade agreement signed by them in the year 1988. Objective of this treaty was to eliminate barriers to trade in services and goods. The agreement facilitates and provides for a fair competition within the free trade area. Oats get benefit of this treaty and Canada being a surplus producer of oats became a largest exporter to US for last several years. The article 408 of this agreement states that there will not be any extra tax, duty or any charge on the export of any good. Moreover, article 603of this agreement also establishes that there will be no disguised barriers to trade. (Canada - United States Free Trade Agreement, 1988) In European Union, the Scandinavian countries such as Finland and Sweden are the principal oat producers and exporters too. These two exporters cater to the needs of other EU importing countries. Germany and Spain are the major importers of oat and trades among them are governed as per EU regulations (Europa 2011). Finland and Sweden joined the EU during 1995 and since then they were provided with oat export subsidies until 2006. Major objective for providing subsidy was to prevent those acres getting converted to other crop such as barley. Between 1995 and 2006, EU export to US averaged at 0.4 MT of oats per year; however with the withdrawal of the EU subsidy export to the US plummeted to just 0.04MT. Trade among the EU member countries does not attract any levy, or duties. That is the reason most of the oats produced in Finland and Sweden gets consumed in European Union only. Raw