IDEAS home Printed from https://ideas.repec.org/a/bpj/bjafio/v17y2019i2p15n7.html
   My bibliography  Save this article

Japanese Beef Tariffs: Beef Quality, Farm Programs, and Producer Compensation

Author

Listed:
  • Schmitz Andrew

    (Department of Food and Resource Economics, University of Florida, Gainesville, FL, USA)

  • Seale James L.

    (Department of Food and Resource Economics, University of Florida, Gainesville, FL, USA)

  • Chegini Claudine

    (Department of Food and Resource Economics, University of Florida, Gainesville, FL, USA)

Abstract

Beef is a highly protected commodity in Japan and the number of studies on the impact of beef import tariff reduction has increased in light of the controversy over the Trans-Pacific Partnership Agreement (TPPA), in which the gains from freer trade in beef was a major point of discussion. We estimate that an 11% tariff reduction for Japanese imports of both Australian and U.S. beef can generate a net welfare gain to Japan of between US$92 million and US$915 million. These results are not overly sensitive to whether beef is treated as homogeneous or heterogeneous. A more significant determinant of welfare gains is the extent to which farm policy would be decoupled along with tariff reductions. Under a decoupled farm program, producer welfare can remain unchanged while the net gain from freer trade is identical to that of complete removal of price supports with no compensation to producers. Therefore, negotiators for U.S. and Australian beef interests should lobby for both lowered tariffs and a decoupling of domestic farm policy within the importing country. This seems to have been the case as Japan was willing to move toward a more decoupled farm program under the TPPA.

Suggested Citation

  • Schmitz Andrew & Seale James L. & Chegini Claudine, 2019. "Japanese Beef Tariffs: Beef Quality, Farm Programs, and Producer Compensation," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 17(2), pages 1-15, November.
    • Handle: RePEc:bpj:bjafio:v:17:y:2019:i:2:p:15:n:7
    DOI: 10.1515/jafio-2019-0001
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/jafio-2019-0001
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/jafio-2019-0001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    References listed on IDEAS

    as
    1. Schmitz, Troy G. & Schmitz, Andrew, 2012. "The Complexities of the Interface between Agricultural Policy and Trade: Technical Annex," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 13(01), pages 1-17, February.
    2. Wyatt Thompson, 2004. "Using Elasticities from an Almost Ideal Demand System? Watch Out for Group Expenditure!," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(4), pages 1108-1116.
    3. 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.
    4. Carter, Colin A & MacLaren, Donald, 1997. "Price or Quantity Competition? Oligopolistic Structures in International Commodity Markets," Review of International Economics, Wiley Blackwell, vol. 5(3), pages 373-385, August.
    5. Honma, Masayoshi & Hayami, Yujiro, 2007. "Distortions to Agricultural Incentives in Korea and Taiwan," Agricultural Distortions Working Paper Series 48479, World Bank.
    6. 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.
    7. Schmitz, Troy G. & Schmitz, Andrew, 2012. "The Complexities of the Interface between Agricultural Policy and Trade," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 13(01), pages 1-12, February.
    8. 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.
    9. Weatherspoon, Dave D. & Seale, James L., 1995. "Do the Japanese Discriminate Against Australian Beef Imports?: Evidence From the Differential Approach," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 27(2), pages 536-543, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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), pages 1-17, July.
    2. Lin, Biing-Hwan & Makus, Larry D., 1990. "Total Imports And Import Patterns Of Barley Into Japan: Implications Of The 1988 Japanese Beef Market Access Agreement," A.E. Research Series 305072, University of Idaho, Department of Agricultural Economics and Rural Sociology.
    3. Schmitz, Andrew & Zilberman, David & Zhu, Manhong, 2015. "Trans-Pacific Partnership, GMOs, and Japan’s Agricultural Trade," 2015: Trade and Societal Well-Being, December 13-15, 2015, Clearwater Beach, Florida 229242, International Agricultural Trade Research Consortium.
    4. Honma, Masayoshi & Hayami, Yujiro, 2008. "Distortions to Agricultural Incentives in Japan, Korea and Taiwan," Agricultural Distortions Working Paper Series 48510, World Bank.
    5. Wen S. Chern & Kimiko Ishibashi & Kiyoshi Taniguchi & Yuki Tokoyama, 2002. "Analysis of Food Consumption Behavior by Japanese Households," Working Papers 02-06, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    6. Gaigné, Carl & Laroche Dupraz, Cathie & Matthews, Alan, 2015. "Thirty years of European research on international trade in food and agricultural products," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 91-130, March.
    7. Honma, Masayoshi & Hayami, Yujiro, 2007. "Distortions to Agricultural Incentives in Korea and Taiwan," Agricultural Distortions Working Paper Series 48479, World Bank.
    8. Yeboah, Godfred & Maynard, Leigh J., 2004. "The Impact Of Bse, Fmd, And U.S. Export Promotion Expenditures On Japanese Meat Demand," 2004 Annual meeting, August 1-4, Denver, CO 19978, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Yang, Seung-Ryong & Koo, Won W., 1994. "Japanese Meat Import Demand Estimation With The Source Differentiated Aids Model," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(2), pages 1-13, December.
    10. Mutondo, Joao E. & Henneberry, Shida Rastegari, 2007. "A Source-Differentiated Analysis of U.S. Meat Demand," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 32(3), pages 1-19, December.
    11. Troy G. Schmitz, 2018. "Impact of the Chinese embargo against MIR162 corn on Canadian corn producers," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(4), pages 571-586, December.
    12. Junjie Zhou & Xiaoshuai Fan & Ying-Ju Chen & Christopher S. Tang, 2021. "Information Provision and Farmer Welfare in Developing Economies," Manufacturing & Service Operations Management, INFORMS, vol. 23(1), pages 230-245, 1-2.
    13. Chadee, Doren & Mori, Hiroshi, 1996. "Developments in the Japanese Beef Market Following Import Liberalisation," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 64(01), pages 1-12, April.
    14. Kym Anderson & Will Martin, 2009. "Distortions to Agricultural Incentives in Asia," World Bank Publications - Books, The World Bank Group, number 2611, April.
    15. Hiroshi Mori & Dennis L. Clason & Jay M. Lillywhite, 2006. "Estimating price and income elasticities in the presence of age-cohort effects," Agribusiness, John Wiley & Sons, Ltd., vol. 22(2), pages 201-217.
    16. Hongbo Liu & Kevin A. Parton & Zhang-Yue Zhou & Rod Cox, 2009. "At-home meat consumption in China: an empirical study ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(4), pages 485-501, October.
    17. Margherita Scoppola, 2010. "The Liberalisation of Tariff Rate Quotas under Oligopolistic Competition," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(3), pages 584-604, September.
    18. Liu, Hongbo & Parton, Kevin A. & Zhou, Zhang-Yue & Cox, Rod, 2009. "At-home meat consumption in China: an empirical study," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(4), pages 1-17.
    19. Bo Xiong & Daniel Sumner & William Matthews, 2014. "A new market for an old food: the U.S. demand for olive oil," Agricultural Economics, International Association of Agricultural Economists, vol. 45(S1), pages 107-118, November.
    20. Zhou, De & Yu, Xiaohua & Abler, David & Chen, Danhong, 2020. "Projecting meat and cereals demand for China based on a meta-analysis of income elasticities," China Economic Review, Elsevier, vol. 59(C).

    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:bpj:bjafio:v:17:y:2019:i:2:p:15:n:7. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.