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Impacts Of Liberalizing The Japanese Pork Market

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  • Wahl, Thomas I.
  • Hayes, Dermot J.
  • Johnson, Stanley R.

Abstract

The Japanese pork market is protected by a complex set of restrictions, including a variable levy and an import tariff. The combination of these policies distorts the quantity, price, and form of Japanese pork imports. An important issue relevant to the liberalization of the Japanese pork market is the accurate measurement of the price wedge between Japanese and world pork prices. The analysis indicates that the tariff equivalent of the price wedge over the 1986-88 period was 44%. If the tariff equivalent of the price wedge is reduced over a ten-year period, Japanese pork imports are projected to increase by over 39% initially and by over 215% compared to baseline projections by the year 2000. Producer welfare can be maintained by a deficiency payment scheme. A less costly alternative is an industry buffer scheme, which maintains the level of the pork industry for two years and then implements a declining deficiency payment scheme that limits the decrease in production levels to 5% per year.

Suggested Citation

  • Wahl, Thomas I. & Hayes, Dermot J. & Johnson, Stanley R., 1992. "Impacts Of Liberalizing The Japanese Pork Market," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(01), July.
  • Handle: RePEc:ags:jlaare:30735
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    References listed on IDEAS

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    1. Kym Anderson, 1983. "The Peculiar Rationality of Beef Import Quotas in Japan," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(1), pages 108-112.
    2. Yujiro Hayami, 1979. "Trade Benefits to All: A Design of the Beef Import Liberalization in Japan," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(2), pages 342-347.
    3. Dermot J. Hayes & Thomas I. Wahl & Gary W. Williams, 1990. "Testing Restrictions on a Model of Japanese Meat Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(3), pages 556-566.
    4. Green, John R. & Hayes, Dermot J. & Khan, Linda & Kihl, Young Whan & Knipe, C. Lynn & Olson, Dennis & Ramaswami, Sridhar & Rust, Robert & Sapp, Stephen G. & Seim, Emerson L. & Wahl, Thomas I. & Clemen, 1990. "Meat Marketing in Japan: A Guide for U.S. Meat Exporting Companies," Staff General Research Papers Archive 539, Iowa State University, Department of Economics.
    5. Thomas I. Wahl & Dermot J. Hayes & Gary W. Williams, 1991. "Dynamic Adjustment in the Japanese Livestock Industry Under Beef Import Liberalization," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(1), pages 118-132.
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    Citations

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    Cited by:

    1. Capps, Oral, Jr. & Tsai, Reyfong & Kirby, Raymond & Williams, Gary W., 1994. "A Comparison Of Demands For Meat Products In The Pacific Rim Region," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(01), July.
    2. Suwartini, Endang & Coffin, H. Garth & Gunjal, Kisan, 1997. "Economic welfare analysis of policy-induced structural change in the Indonesian poultry industry," Agricultural Economics, Blackwell, vol. 16(3), pages 237-243, August.
    3. Unterschultz, James R. & Jeffrey, Scott R. & Quagrainie, Kwamena K., 2000. "Value-Adding 20 Billion By 2005: Impact At The Alberta Farm Gate," Project Report Series 24049, University of Alberta, Department of Resource Economics and Environmental Sociology.
    4. Buhr, Brian L. & Kim, Hanho, 1997. "Dynamic adjustment in the US beef market with imports," Agricultural Economics, Blackwell, vol. 17(1), pages 21-34, October.
    5. Aaron J. Johnson & Catherine A. Durham & Cathy R. Wessells, 1998. "Seasonality in Japanese household demand for meat and seafood," Agribusiness, John Wiley & Sons, Ltd., vol. 14(4), pages 337-351.
    6. Jeong, Kyeong-Soo & Garcia, Philip & Bullock, David S., 2003. "A statistical method of multi-market welfare analysis applied to Japanese beef policy liberalization," Journal of Policy Modeling, Elsevier, vol. 25(3), pages 237-256, April.
    7. Suwartini, Endang & Coffin, H. Garth & Gunjal, Kisan, 1997. "Economic welfare analysis of policy-induced structural change in the Indonesian poultry industry," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 16(3), August.
    8. Quagrainie, Kwamena K. & Unterschultz, James R. & Jeffrey, Scott R., 2000. "The Impact Of Post-Farmgate Value-Adding On Western Canadian Agriculture," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36379, Western Agricultural Economics Association.
    9. Buhr, Brian L. & Kim, Hanho, 1997. "Dynamic adjustment in the US beef market with imports," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 17(1), October.

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    International Relations/Trade;

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