Concentrated Market Power and Agricultural Trade

by Sophia Murphy

Ecofair Discussion Paper No. 1 / August 2006

Market power is the ability to affect price (setting buyer prices above and/or supplier prices below open market levels), to reduce competition (for example, by keeping out new entrants) and to set standards for a sector of economic activity. Market power in agricultural production, processing and distribution both shapes global trade and investment rules and is shaped by those rules. The challenges presented by today's levels of corporate concentration do not invite easy answers. Those concerned to protect and promote Eco-Fair Trade for agriculture need to pursue a number of avenues. This paper considers a variety of policy options, in some cases raising more questions than are answered.

Full paper available for download at http://www.tradeobservatory.org/library.cfm?refid=89014