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Tariff Compensation: Sufficient Justification For Assistance To Australian Agriculture?

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  • Harris, Stuart

Abstract

This paper discusses in greater detail the case for tariff compensation set out in the Green Paper on Rural Policy. It considers a number of theoretical and practical arguments levelled against the principle, including those put forward in the Annual Report for 1973-74 of the Industries Assistance Commission. It concludes that despite the various counter arguments, the second best argument for tariff compensation applicable to low cost manufacturing as well as rural industries, remains valid in principle; in practice the extent to which any such partial compensation would be warranted needs to be assessed in the light of the appropriate substitution and complementarity relationships.

Suggested Citation

  • Harris, Stuart, 1975. "Tariff Compensation: Sufficient Justification For Assistance To Australian Agriculture?," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 19(3), pages 1-15, December.
    • Handle: RePEc:ags:ajaeau:22336
    DOI: 10.22004/ag.econ.22336
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    References listed on IDEAS

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    1. Wolfgang F. Stolper & Paul A. Samuelson, 1941. "Protection and Real Wages," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 9(1), pages 58-73.
    2. Bertrand, Trent J & Vanek, Jaroslav, 1971. "The Theory of Tariffs, Taxes, and Subsidies: Some Aspects of the Second Best," American Economic Review, American Economic Association, vol. 61(5), pages 925-931, December.
    3. Turvey, Ralph, 1971. "Rates of Return, Pricing and the Public Interest," Economic Journal, Royal Economic Society, vol. 81(323), pages 489-501, September.
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    Cited by:

    1. Peter G. Warr, 1978. "The Case Against Tariff Compensation," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 22(2-3), pages 85-98, 08-12.
    2. D. MacLaren, 1991. "Agricultural Trade Policy Analysis And International Trade Theory: A Review Of Recent Developments," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(3), pages 250-297, September.
    3. Kym Anderson & Peter Lloyd & Donald Maclaren, 2007. "Distortions to Agricultural Incentives in Australia Since World War II," The Economic Record, The Economic Society of Australia, vol. 83(263), pages 461-482, December.
    4. Kym Anderson, 2020. "Trade Protectionism In Australia: Its Growth And Dismantling," Journal of Economic Surveys, Wiley Blackwell, vol. 34(5), pages 1044-1067, December.
    5. Ayre L. Hillman, 1977. "The Brigden Theorem: The Inefficiency of Tariffs, Public Sophistication and the Merit‐Want Market Failure," The Economic Record, The Economic Society of Australia, vol. 53(3), pages 434-446, September.
    6. William J. Martin, 1990. "Public Choice Theory And Australian Agricultural Policy Reform," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 34(3), pages 189-211, December.
    7. Peter G. Warr, 1977. "Tariff Compensation via Input Subsidies," The Economic Record, The Economic Society of Australia, vol. 53(4), pages 508-516, December.
    8. Harris, Stuart, 1979. "The Case Against Tariff Compensation: A Comment," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 23(2), pages 1-5, August.
    9. Peter Lloyd & Peter Lloyd, 2013. "Relative Assistance to Agriculture and Manufacturing since Federation," Department of Economics - Working Papers Series 1173, The University of Melbourne.
    10. John C. Quiggin, 1983. "Underwriting Agricultural Commodity Prices," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 27(3), pages 200-211, December.
    11. Jarrett, Frank G. & McColl, James C., 1984. "Comments On The Balderstone Report: Reply," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 28(1), pages 1-10, April.
    12. Peter G. Warr, 1979. "Tariff Compensation Without Omniscience," The Economic Record, The Economic Society of Australia, vol. 55(1), pages 20-32, March.
    13. Roger G. Mauldon, 2021. "Early Analytical Agricultural Economics in Australia," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 61(1), pages 45-63, March.

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