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Tariff Escalation and Invasive Species Risk

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Abstract

We investigate the interface between trade and invasive species (IS) risk, focusing on the existing tariff escalation in agro-forestry product markets and its implication for IS risk. Tariff escalation in processed agro-forestry products exacerbates the risk of IS by biasing trade flows toward increased trade of primary commodity flows and against processed-product trade. We show that reducing tariff escalation by lowering the tariff on processed goods increases allocative efficiency and reduces the IS externality, a win-win situation. We also identify policy menus for trade reforms involving tariffs on both raw input and processed goods, leading to win-win situations.

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Bibliographic Info

Paper provided by Center for Agricultural and Rural Development (CARD) at Iowa State University in its series Center for Agricultural and Rural Development (CARD) Publications with number 05-wp407.

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Date of creation: Oct 2005
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Handle: RePEc:ias:cpaper:05-wp407

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Keywords: agro-forestry products; exotic pest; international trade; invasive species; tariff escalation; trade flows.;

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  1. Lewandrowski, Jan & Kim, C.S., 2003. "Economics Of Managing Invasive Pest Species: Exclusion And Control," 2003 Annual meeting, July 27-30, Montreal, Canada 21948, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Tu, Anh Thuy & Beghin, John C., 2004. "Intra-Industry Trade, Imperfect Competition, Trade Integration and Invasive Species Risk," 2004 Annual meeting, August 1-4, Denver, CO 20032, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. McAusland, Carol & Costello, Christopher, 2004. "Avoiding invasives: trade-related policies for controlling unintentional exotic species introductions," Journal of Environmental Economics and Management, Elsevier, vol. 48(2), pages 954-977, September.
  4. Monika Binder, 2002. "The role of risk and cost-benefit analysis in determining quarantine measures," International Trade 0203002, EconWPA.
  5. Golub, Stephen S & Finger, J M, 1979. "The Processing of Primary Commodities: Effects of Developed-Country Tariff Escalation and Developing-Country Export Taxes," Journal of Political Economy, University of Chicago Press, vol. 87(3), pages 559-77, June.
  6. Philip L. Paarlberg & John G. Lee, 1998. "Import Restrictions in the Presence of a Health Risk: An Illustration Using FMD," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 175-183.
  7. Christopher Costello & Carol McAusland, 2003. "Protectionism, Trade, and Measures of Damage from Exotic Species Introductions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 964-975.
  8. J. D. Mumford, 2002. "Economic issues related to quarantine in international trade," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(3), pages 329-348, July.
  9. Binder, Monika, 2002. "The Role of Risk and Cost-Benefit Analysis in Determining Quarantine Measures," Staff Research Papers 31911, Productivity Commission.
  10. Cook, D. C. & Fraser, R. W., 2002. "Exploring the regional implications of interstate quarantine policies in Western Australia," Food Policy, Elsevier, vol. 27(2), pages 143-157, April.
  11. Yeats, Alexander J., 1984. "On the analysis of tariff escalation : Is there a methodological bias against the interest of developing countries?," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 77-88.
  12. Lindland, Jostein, 1997. "The impact of the Uruguay Round on tariff escalation in agricultural products," Food Policy, Elsevier, vol. 22(6), pages 487-500, December.
  13. Gibson, Paul R. & Wainio, John & Whitley, Daniel B. & Bohman, Mary, 2001. "Profiles Of Tariffs In Global Agricultural Markets," Agricultural Economics Reports 34055, United States Department of Agriculture, Economic Research Service.
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