Benefit cost analysis of an import access request
Invasive species outbreaks are often unintended side effects of trade. In this paper partial equilibrium trade models and stochastic bioeconomic impact simulation models are combined to present a benefit cost analysis template to assess market access requests. The template is used to assess the likely regional economic welfare implications of a decision by Australian biosecurity regulators to allow the Chilean table grape industry access to the national table grape market. We show that consumption benefits expected to accrue to Western Australia are exceeded by increases in likely invasive species damage resulting from grape imports, implying that insufficient consumer gains are grounds to deny market access.
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