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The Problems And Pitfalls In Modeling International Dairy Trade Liberalization

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  • Meilke, Karl D.
  • Lariviere, Sylvain

Abstract

Contact for this paper: Dr. Karl Meilke, Department of Agricultural Economics and Business, Guelph, Ontario N1G 2W1, Canada. The international dairy sector is one of the most heavily protected commodity sectors in agriculture. Following the Uruguay Round of multilateral trade liberalization all nontariff barriers to trade were converted, through the process of tariffication, into tariffs. However, in the dairy sector, the border measure most commonly adopted by developed countries was a system of tariff rate quotas. Tariff rate quotas are two-tiered tariffs which allow a small quantity of the product to be imported at a low or zero tariff, while quantities above the minimum access amount are charged much higher and often prohibitive tariffs. Tariff rate quotas cause the excess supply curve facing an importing country to be discontinuous at the minimum access amount. The objective of this paper is to review key issues related to modeling trade liberalization for the international dairy economy, given the existence of tariff rate quotas and export subsidies.

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Bibliographic Info

Paper provided by International Agricultural Trade Research Consortium in its series Working Papers with number 14579.

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Date of creation: 1999
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Handle: RePEc:ags:iatrwp:14579

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Related research

Keywords: International Relations/Trade; Livestock Production/Industries;

References

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  1. GianCarlo Moschini, 1991. "Economic Issues in Tariffication: An Overview," Center for Agricultural and Rural Development (CARD) Publications 90-gatt1, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  2. Meilke, Karl D. & Sarker, Rakhal & Le Roy, Danny G., 1996. "Analyzing The Potential For Increased Trade In Dairy Products: A Canadian Perspective," Understanding Canada\United States Dairy Disputes; Proceedings of the 2nd Canada\U.S. Agricultural and Food Policy Systems Information Workshop-1996 16959, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
  3. Shoven,John B. & Whalley,John, 1992. "Applying General Equilibrium," Cambridge Books, Cambridge University Press, number 9780521266550.
  4. Griffith, Garry & Lattimore, Ralph & Robertsonf, John, 1993. "Domestic dairy policies and international market adjustment in a simplified model of world dairy products trade," Journal of Policy Modeling, Elsevier, vol. 15(2), pages 141-156, April.
  5. S. Devadoss & Patrick C. Westhoff & Michael D. Helmar & Eric Grundmeier & Karl D. Skold & William H. Meyers & Stanley R. Johnson, 1989. "FAPRI Modeling System at CARD: A Documentation Summary, The," Food and Agricultural Policy Research Institute (FAPRI) Publications 89-tr13, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
  6. S. Devadoss & Patrick C. Westhoff & Michael D. Helmar & Eric Grundmeier & Karl D. Skold & William H. Meyers & Stanley R. Johnson, 1989. "FAPRI Modeling System at CARD: A Documentation Summary, The," Center for Agricultural and Rural Development (CARD) Publications 89-tr13, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  7. Agriculture And Agri-Food Canada, 1996. "The Canadian Dairy Sector: Structure, Performance And Policies," Understanding Canada\United States Dairy Disputes; Proceedings of the 2nd Canada\U.S. Agricultural and Food Policy Systems Information Workshop-1996 16950, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
  8. Harrison, Glenn W & Rutherford, Thomas F & Tarr, David G, 1997. "Quantifying the Uruguay Round," Economic Journal, Royal Economic Society, vol. 107(444), pages 1405-30, September.
  9. Karl Meilke & Rakhal Sarker & Danny Roy, 1998. "The Potential for Increased Trade in Milk and Dairy Products between Canada and the United States under Trade Liberalization," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 46(2), pages 149-169, 07.
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Cited by:
  1. Grant, Jason H. & Hertel, Thomas W. & Rutherford, Thomas F., 2006. "Extending General Equilibrium to the Tariff Line: U.S. Dairy in the DOHA Development Agenda," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25305, International Association of Agricultural Economists.
  2. Dell'Aquila, Crescenzo & Sarker, Rakhal & Meilke, Karl D., 1999. "Regionalism And Trade In Agrifood Products," Working Papers 14591, International Agricultural Trade Research Consortium.
  3. Meilke, Karl D. & Huff, Karen, 2001. "Trade Liberalization Under Nafta: Where From Here?," Trade Liberalization Under NAFTA: Report Card on Agriculture; Proceedings of the 6th Agricultural and Food Policy Systems Information Workshop -2000 16819, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.

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