IDEAS home Printed from https://ideas.repec.org/a/bla/worlde/v35y2012i8p1053-1072.html
   My bibliography  Save this article

Compositional Standards, Import Permits and Market Structure: The Case of Canadian Cheese Imports

Author

Listed:
  • Marie-Hélène Felt
  • Bruno Larue
  • Jean-Philippe Gervais

Abstract

The imposition of new cheese compositional standards by the Canadian authorities has created divisions within the Canadian dairy industry and has motivated criticisms from several of Canada’s trade partners. The standards impose minimum limits on the percentage of casein coming from fluid milk which vary across cheese types. We develop a theoretical model to investigate the implications of Canada’s compositional cheese standards while accounting for Canada’s tariff rate quota specificities. The “use it or lose it“ clause on import permits makes it possible for cheeses not directly constrained by the standards to be strongly impacted. We also show that the regulations on cheese composition may or may not increase the domestic demand for milk. Without information on technical coefficients in the cheese industry, we were unable to resolve through empirical simulations the ambiguities arising from our theoretical results. Our empirical investigation focused instead on the pricing and composition of cheese imports. We identified structural breaks in the processes determining import unit values shortly before or shortly after the beginning of the implementation of the standards. We found differences in break dates across cheese types and also across countries supplying the same type of cheese. Thus, the standards had some impact on the market shares of our trade partners as well as inflationary effects on cheese prices.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Marie-Hélène Felt & Bruno Larue & Jean-Philippe Gervais, 2012. "Compositional Standards, Import Permits and Market Structure: The Case of Canadian Cheese Imports," The World Economy, Wiley Blackwell, vol. 35(8), pages 1053-1072, August.
  • Handle: RePEc:bla:worlde:v:35:y:2012:i:8:p:1053-1072
    DOI: j.1467-9701.2012.01462.x
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/j.1467-9701.2012.01462.x
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Sébastien Pouliot & Bruno Larue, 2012. "Import sensitive products and perverse tariff-rate quota liberalization," Canadian Journal of Economics, Canadian Economics Association, vol. 45(3), pages 903-924, August.
    2. Richard Harris, 1985. "Why Voluntary Export Restraints Are 'Voluntary.'," Canadian Journal of Economics, Canadian Economics Association, vol. 18(4), pages 799-809, November.
    3. Falvey, Rodney E, 1979. "The Composition of Trade within Import-restricted Product Categories," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 1105-1114, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lambert, Remy, 2012. "A Primer on the Economics of Supply Management and Food Supply Chains," Working Papers 125246, Structure and Performance of Agriculture and Agri-products Industry (SPAA).
    2. Alphonse Singbo & Bruno Larue, 2016. "Scale Economies, Technical Efficiency, and the Sources of Total Factor Productivity Growth of Quebec Dairy Farms," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(2), pages 339-363, June.
    3. Alphonse G. Singbo & Bruno Larue, 2014. "Scale Economies and Technical Efficiency of Quebec Dairy Farms," Cahiers de recherche CREATE 2014-7, CREATE.

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:worlde:v:35:y:2012:i:8:p:1053-1072. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0378-5920 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.