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Trans-Pacific Partnership: Implications for the Canadian Industrial Dairy Sector

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  • James Rude
  • Henry An

Abstract

The announcement of the Trans-Pacific Partnership in June 2012 raised speculation about dire consequences for the dairy sector and the end of supply management. We examine these claims in the context of tariff liberalization and the transmission of volatile international dairy prices into the Canadian market. The paper examines the implications for dairy farmer welfare, quota values, and the welfare of other agents in the economy. Given that the US dairy industry has interests of its own to protect, significant dairy tariff liberalization is not expected. With modest tariff reductions, the impact on quota values will be minimal. Likewise, the overall decline in producer welfare will also be small. Therefore, supply management, as a marketing institution, is likely to survive the TPP, but marketing boards may have to change their pricing policies in response to tariff reductions.

Suggested Citation

  • James Rude & Henry An, 2013. "Trans-Pacific Partnership: Implications for the Canadian Industrial Dairy Sector," Canadian Public Policy, University of Toronto Press, vol. 39(3), pages 393-410, September.
    • Handle: RePEc:cpp:issued:v:39:y:2013:i:3:p:393-410
    DOI: 10.3138/CPP.39.3.393
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    Cited by:

    1. Wainio, John & Dyck, John & Meade, Birgit Gisela Saager & Mitchell, Lorrarine & Zahniser, Steven & Arita, Shawn & Beckman, Jayson F. & Burfisher, Mary E., 2014. "Agriculture in the Trans-Pacific Partnership," Economic Research Report 188429, United States Department of Agriculture, Economic Research Service.
    2. Amanda Norris & John Cranfield, 2019. "Consumer Preferences for Country‐of‐Origin Labeling in Protected Markets: Evidence from the Canadian Dairy Market," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(3), pages 391-403, September.
    3. Asci, Serhat C. & Paggi, Mechel & Yamazaki, Fumiko, 2016. "Implications of Trans-Pacific Partnership for the US Dairy Industry," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(B), pages 1-16, August.
    4. Sarker, Dr. Rakhal & Koto, Prosper & Cassidy, Heather, 2015. "A Demand System for Major Dairy Products in Ontario," 2015 Conference, August 9-14, 2015, Milan, Italy 212689, International Association of Agricultural Economists.
    5. Scott Biden & Alan P. Ker & Stephen Duff, 2020. "Impacts of trade liberalization in Canada's supply managed dairy industry," Agricultural Economics, International Association of Agricultural Economists, vol. 51(4), pages 535-552, July.

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