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Exploring the Regional and Size-Related Implications of Interstate Quarantine Policies for WA Fruit and Vegetable Growers

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  • Cook, David C.
  • Fraser, Rob W.

Abstract

As a signatory of the World Trade Organisation Agreement, Australia has a responsibility to ensure that the behaviour of its internal markets for food and food-related products abide by the same rules and regulations as international trade. There is therefore an increasing need to demonstrate the validity of any measure which restricts competition between production centres to ensure against an appeal and/or retaliatory actions by trading counterparts. This paper explores two economic evaluation techniques which can be used to examine the welfare implications of quarantine policies imposed on interstate trade, and discusses practical applications of each with the aid of two case studies. One approach relies on an aggregated, industry-wide perspective, and is shown to be most appropriate when the cost characteristics of an industry’s component growing regions are similar. The other focuses on spatial elements of a domestic industry, which is best used when there are significant cost differences between component producing regions. In addition to examining the accuracy of these techniques in policy analysis, the size characteristics of the industries they can be applied to are also analysed. Using the examples of the mango and tomato industries in Western Australia, both of which enjoy quarantine protection from interstate growers, it is shown that the consumer welfare implications of competition restrictions outweigh producer welfare implications in larger industries, and vice versa.

Suggested Citation

  • Cook, David C. & Fraser, Rob W., 2001. "Exploring the Regional and Size-Related Implications of Interstate Quarantine Policies for WA Fruit and Vegetable Growers," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125560, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare01:125560
    DOI: 10.22004/ag.econ.125560
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    References listed on IDEAS

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    1. J. Scott Shonkwiler & Robert D. Emerson, 1982. "Imports and the Supply of Winter Tomatoes: An Application of Rational Expectations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(4), pages 634-641.
    2. Hinchy, Mike & Fisher, Brian, 1991. "A Cost-Benefit Analysis of Quarantine," Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) Archive 293275, Australian Government, Australian Bureau of Agricultural and Resource Economics and Sciences.
    3. James, Sallie, 1999. "An economic analysis of food safety issues following the SPS Agreement: Lessons from the Hormones dispute," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123674, Australian Agricultural and Resource Economics Society.
    4. Fraser, Rob W., 2000. "An Economic Risk Assessment of the Impact on Producers of Removing Quarantine Restrictions," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123647, Australian Agricultural and Resource Economics Society.
    5. Cook, David C., 2000. "An Economic Evaluation of the Benefits from Import Clearance Activities in Western Australia," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123628, Australian Agricultural and Resource Economics Society.
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    Cited by:

    1. Cook, David & Fraser, Rob, 2002. "An Economic Method for Empirically Assessing the ‘Appropriate Level of Protection," 2002 Conference (46th), February 13-15, 2002, Canberra, Australia 173978, Australian Agricultural and Resource Economics Society.

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