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Tariff Escalation and Invasive Species Risk

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  • Anh Tu
  • John C. Beghin
  • Estelle Gozlan

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.

Suggested Citation

  • Anh Tu & John C. Beghin & Estelle Gozlan, 2005. "Tariff Escalation and Invasive Species Risk," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 05-wp407, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    • Handle: RePEc:ias:fpaper:05-wp407
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    References listed on IDEAS

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