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Tariff-Rate Quota Liberalization: The Case of World Price Uncertainty and Supply Management

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  • James I. Rude
  • Jean-Philippe Gervais

Abstract

"This paper examines the options for liberalizing tariff-rate quotas when a marketing board controls domestic production and international prices are stochastic. Lowering over-quota tariff and increasing import quota volumes are not equivalent. The trade-offs between the two types of trade reforms are examined through numerical simulations for the Canadian chicken industry. Introducing world price variability results in a distribution of welfare impacts for the different groups in the industry. Consumers and processors gain more with tariff liberalization than with increased import quotas. The difference in producer surplus between liberalization regimes is truncated so that producers only see down-side risk under the tariff liberalization regime." Copyright 2006 Canadian Agricultural Economics Society.

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Bibliographic Info

Article provided by Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie in its journal Canadian Journal of Agricultural Economics.

Volume (Year): 54 (2006)
Issue (Month): 1 (03)
Pages: 33-54

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Handle: RePEc:bla:canjag:v:54:y:2006:i:1:p:33-54

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Cited by:
  1. L.D. Tamini & M. Doyon & M.M. Zan, 2014. "Investment behavior of Canadian Egg Producers: Analyzing the Impacts of Risk Aversion and Variability of Prices and Costs of Production," Cahiers de recherche CREATE 2014-2, CREATE.
  2. Abbassi, Abdessalem & Tamini, Lota D. & Gervais, Jean-Philippe, 2011. "Do inventories have an impact on price transmission? Evidence from the Canadian chicken industry," MPRA Paper 30868, University Library of Munich, Germany.
  3. Lambert, Remy, 2012. "A Primer on the Economics of Supply Management and Food Supply Chains," Working Papers 125246, Structure and Performance of Agriculture and Agri-products Industry (SPAA).
  4. Tamini, Lota D. & Doyon, Maurice & Simon, Rodrigue, 2012. "Analyzing trade liberalization effect in egg sector using a dynamic gravity model," MPRA Paper 39315, University Library of Munich, Germany.

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