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Tariff Escalation and Invasive Species Risk

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Author Info
Anh Tu
John C. Beghin
Estelle Gozlan

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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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Publisher Info
Paper provided by Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University in its series Food and Agricultural Policy Research Institute (FAPRI) Publications with number 05-wp407.

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

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

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This paper has been announced in the following NEP Reports: References listed on IDEAS
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  1. 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. [Downloadable!] (restricted)
  2. Binder, Monika, 2002. "The Role of Risk and Cost-Benefit Analysis in Determining Quarantine Measures," Staff Research Papers 31911, Productivity Commission. [Downloadable!]
  3. Beghin, John C. & Roland-Holst, David & van du Mensbrugghe, Dominique, 2002. "Trade and the Environment in General Equilibrium: Evidence from Developing Economies," Staff General Research Papers 4090, Iowa State University, Department of Economics. [Downloadable!]
  4. J. D. Mumford, 2002. "Economic issues related to quarantine in international trade," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 29(3), pages 329-348, July.
  5. Gibson, Paul & Wainio, John & Whitley, Daniel & Bohman, Mary, 2001. "Profiles Of Tariffs In Global Agricultural Markets," Agricultural Economics Reports 34055, United States Department of Agriculture, Economic Research Service. [Downloadable!]
  6. 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. [Downloadable!] (restricted)
  7. 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. [Downloadable!] (restricted)
  8. Aksoy, M. Ataman & Beghin, John C., 2005. "Global Agricultural Trade and Developing Countries," Staff General Research Papers 12228, Iowa State University, Department of Economics. [Downloadable!]
  9. Christopher Costello & Carol McAusland, 2003. "Protectionism, Trade, and Measures of Damage from Exotic Species Introductions," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 85(4), pages 964-975, November. [Downloadable!] (restricted)
  10. 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. [Downloadable!] (restricted)
  11. Monika Binder, 2002. "The role of risk and cost-benefit analysis in determining quarantine measures," International Trade 0203002, EconWPA. [Downloadable!]
  12. 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). [Downloadable!]
  13. Rae, A. & Josling, T., 2003. "Processed food trade and developing countries: protection and trade liberalization," Food Policy, Elsevier, vol. 28(2), pages 147-166, April. [Downloadable!] (restricted)
  14. Margolis, Michael & Shogren, Jason F. & Fischer, Carolyn, 2005. "How trade politics affect invasive species control," Ecological Economics, Elsevier, vol. 52(3), pages 305-313, February. [Downloadable!] (restricted)
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  15. Tu, Anh & 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). [Downloadable!]
  16. Pimentel, David & Zuniga, Rodolfo & Morrison, Doug, 2005. "Update on the environmental and economic costs associated with alien-invasive species in the United States," Ecological Economics, Elsevier, vol. 52(3), pages 273-288, February. [Downloadable!] (restricted)
  17. 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. [Downloadable!] (restricted)
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