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The Trade and Welfare Impact of Australian Quarantine Policies: The Case of Pigmeat

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  • Beghin, John C.
  • Melatos, Mark

Abstract

Abstract: We analyze the trade and welfare impact of quarantine measures imposed by Australiaon imports of pigmeat. In particular, we account for changes to Australia’s pigmeat quarantinepolicy over time including those changes related to the recent resolution of a WTO disputebetween Australia and the European Union. Using a random utility model, and applying it tocorner solutions in import decisions, tariff equivalents (by major trading partner) are estimatedfor the different pigmeat quarantine regimes implemented by Australia during the period 1988-2009. The welfare impact on consumers, producers, and foreign exporters is computed using apartial equilibrium model calibrated on the econometric estimates. The quarantine regimes havea strong effect on trade and welfare with a tariff equivalent above 113% of average real worldprices over the period analyzed.

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Bibliographic Info

Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 34135.

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Date of creation: 22 Aug 2011
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Handle: RePEc:isu:genres:34135

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
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Web page: http://www.econ.iastate.edu
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Keywords: pigmeat; pork; australia; non-tariff measure; NTM; quarantine; import ban; trade;

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  1. Everett B. Peterson & David Orden, 2008. "Avocado Pests and Avocado Trade," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 321-335.
  2. Chengyan Yue & John Beghin & Helen H. Jensen, 2006. "Tariff Equivalent of Technical Barriers to Trade with Imperfect Substitution and Trade Costs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 947-960.
  3. Yue, Chengyan & Beghin, John C., 2007. "The Tariff Equivalent and Forgone Trade Effects of Prohibitive Technical Barriers to Trade," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 10000, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  4. Chengyan Yue & John C. Beghin, 2009. "Tariff Equivalent and Forgone Trade Effects of Prohibitive Technical Barriers to Trade," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 930-941.
  5. Tanner, Carolyn, 1997. "Principles of Australian Quarantine," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 41(4), December.
  6. David Hummels & Alexandre Skiba, 2002. "Shipping the Good Apples Out? An Empirical Confirmation of the Alchian-Allen Conjecture," NBER Working Papers 9023, National Bureau of Economic Research, Inc.
  7. Rubinstein, Yona & Helpman, Elhanan & Melitz, Marc, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," Scholarly Articles 3228230, Harvard University Department of Economics.
  8. James, Sallie & Anderson, Kym, 1998. "On the need for more economic assessment of quarantine/SPS policies," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 42(4), December.
  9. Wales, T. J. & Woodland, A. D., 1983. "Estimation of consumer demand systems with binding non-negativity constraints," Journal of Econometrics, Elsevier, vol. 21(3), pages 263-285, April.
  10. Thomas Chaney, 2008. "Distorted Gravity: The Intensive and Extensive Margins of International Trade," American Economic Review, American Economic Association, vol. 98(4), pages 1707-21, September.
  11. Tanner, Carolyn & Nunn, Mike J., 1998. "Australian quarantine post the Nairn Review," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 42(4), December.
  12. Tanner, Carolyn & Nairn, Malcolm, 1997. "Principles of Australian Quarantine," 1997 Conference (41st), January 22-24, 1997, Gold Coast, Australia 135413, Australian Agricultural and Resource Economics Society.
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