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An Economic Assessment of the BSE Crisis in Canada: Impact of Border Closure and BSE Recovery Programs

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  • Weerahewa, Jeevika
  • Meilke, Karl D.
  • Le Roy, Danny G.

Abstract

This article assesses the economic consequences of three alternative government responses to the BSE crisis in Canada: 1) expansion in slaughter capacity; 2) partial destruction of the cattle herd; and 3) deficiency payments. Each of these policies is evaluated under four different border situations: 1) autarky; 2) free trade in young beef only; 3) free trade in young beef and cattle; and 4) complete free trade. The results of the policy analysis are quite sensitive to the border assumptions, making it impossible to select a “best†policy without perfect foresight with respect to the timing and the extent of the border opening.

Suggested Citation

  • Weerahewa, Jeevika & Meilke, Karl D. & Le Roy, Danny G., 2008. "An Economic Assessment of the BSE Crisis in Canada: Impact of Border Closure and BSE Recovery Programs," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 9(1).
  • Handle: RePEc:ags:ecjilt:6176
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    References listed on IDEAS

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    1. Giancarlo Moschini & Karl D. Meilke, 1992. "Production Subsidy and Countervailing Duties in Vertically Related Markets: The Hog-Pork Case Between Canada and the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(4), pages 951-961.
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    Cited by:

    1. Sarker, Rakhal & Ratnesena, Shashini, 2014. "Revealed Comparative Advantage and Half-A-Century Competitiveness of Canadian Agriculture: A Case Study of Wheat, Beef and Pork Sectors," Working Papers 165675, Canadian Agricultural Trade Policy Research Network.

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