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Implicit Tariffs on Imported Dairy Product Components in the United States

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  • Tellioglu, Isin
  • Bailey, Kenneth W.
  • Blandford, David
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    Abstract

    The majority of the dairy products imported by the United States are intermediate products used in food processing. As such, they are demanded for their components such as milk fat and protein. The implications of the U.S. tariff structure for import demand must be viewed in terms of the tariff's effects upon the relative prices of imported milk components. In this article we examine the implications of the current tariff structure and proposed changes under the Doha Round of international trade negotiations at the World Trade Organization. We show that implicit ad valorem equivalent tariffs (AVEs) on components vary substantially under the current tariff schedule. Proposed changes under the Doha Round would lead to not only a reduction in the level of implied tariffs on components, but also a reduction in dispersion. This would help to reduce the possibility of distortions due to significant differences in component prices across intermediate dairy products.

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    File URL: http://purl.umn.edu/9240
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    Bibliographic Info

    Article provided by Estey Centre for Law and Economics in International Trade in its journal Estey Centre Journal of International Law and Trade Policy.

    Volume (Year): 08 (2007)
    Issue (Month): 1 ()
    Pages:

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    Handle: RePEc:ags:ecjilt:9240

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    Related research

    Keywords: dairy; Doha Round; milk components; tariff structure; United States; International Relations/Trade;

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    1. Steven Buccola & Yoko Iizuka, 1997. "Hedonic Cost Models and the Pricing of Milk Components," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 452-462.
    2. Tellioglu, Isin & Bailey, Kenneth W. & Blandford, David, 2006. "Tariffs on U.S. Imports of Dairy Products: A Product Component Analysis," 2006 Annual meeting, July 23-26, Long Beach, CA 21322, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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