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Options for Supply Management in Canada with Trade Liberalization

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Author Info

  • Barichello, Richard R.
  • Cranfield, John A.L.
  • Meilke, Karl D.

Abstract

Following the Uruguay Round of trade negotiations Canada replaced its import quotas on sensitive products with tariff rate quotas. The over-quota tariffs on those products operating under domestic supply management schemes (dairy and poultry products) ranged from a low of 155 percent on turkey to a high of 299 percent on butter. These tariffs have effectively blocked over quota imports and are likely to continue to prevent imports, under most market conditions, given the likely range of tariff cuts proposed for sensitive products following a successful completion of the Doha Round. However, it’s argued that tariff cuts in the post-Doha Round will severely limit Canada’s ability to restrict imports and it is important to use the next 15 years to better position the supply managed industries to compete at that time. The paper reviews a number of reform options that could be pursued ranging from a full buy-out of current marketing quotas, the introduction of two types of marketing quota, to providing partial compensation of short-term income losses. The advantages and disadvantages of each option are discussed with respect to their costs and impacts on income and asset values.

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Bibliographic Info

Paper provided by Canadian Agricultural Trade Policy Research Network in its series Commissioned Papers with number 6124.

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Date of creation: 2007
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Handle: RePEc:ags:catpcp:6124

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Web page: http://www.catrade.org/
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Related research

Keywords: Canada; trade liberalization; supply management; Demand and Price Analysis; International Relations/Trade;

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References

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  1. GianCarlo Moschini, 1991. "Economic Issues in Tariffication: An Overview," Food and Agricultural Policy Research Institute (FAPRI) Publications 90-gatt1, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
  2. Geoff Edwards, 2003. "The story of deregulation in the dairy industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(1), pages 75-98, 03.
  3. Edwards, Geoff W., 2003. "The story of deregulation in the dairy industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(1), March.
  4. Rude, James & Meilke, Karl D., 2005. "Canadian Agriculture and the Doha Development Agenda: The Challenges," Working Papers 24157, Canadian Agricultural Trade Policy Research Network.
  5. Brink, Lars, 2005. "WTO 2004 Agriculture Framework: Disciplines on Distorting Domestic Support," Working Papers 14587, International Agricultural Trade Research Consortium.
  6. Skully, David W., 2001. "Economics Of Tariff-Rate Quota Administration," Technical Bulletins 33576, United States Department of Agriculture, Economic Research Service.
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Cited by:
  1. Colin Busby & Daniel Schwanen, 2013. "Putting the Market Back in Dairy Marketing," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 374, March.
  2. Kerr, William A., 2012. "The EU-Canada Free Trade Agreement: What is on the Table for Agriculture?," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 135067, Agricultural Economics Society.

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