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U.S. Trade Policy on Lamb Meat: Who Gets Fleeced?

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  • Philip L. Paarlberg
  • John G. Lee

Abstract

The U.S. lamb meat industry received protection from import competition in 1999 with a tariff-rate quota. This paper analyzes proposed and adopted policies using a partial equilibrium model of lamb meat and lambs incorporating imperfect competition in the packing industry. Under a tariff policy packers can only exercise oligopsony power in the lamb market and both packers and lamb growers benefit from protection. If a quota or tariff-rate quota policy is used, packers can assert oligopoly power. Packers benefit from protection, but lamb growers may not. Under the tariff-rate quota adopted, lamb growers suffer a welfare loss. Copyright 2001, Oxford University Press.

Suggested Citation

  • Philip L. Paarlberg & John G. Lee, 2001. "U.S. Trade Policy on Lamb Meat: Who Gets Fleeced?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(1), pages 196-208.
  • Handle: RePEc:oup:ajagec:v:83:y:2001:i:1:p:196-208
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    File URL: http://hdl.handle.net/10.1111/0002-9092.00147
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    Citations

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    Cited by:

    1. Capps, Oral, Jr. & Williams, Gary W. & Dang, Trang, 2010. "Effects of Lamb Promotion on Lamb Demand and Imports," Reports 90492, Texas A&M University, Agribusiness, Food, and Consumer Economics Research Center.
    2. Ufer, Danielle & Countryman, Amanda M. & Muhammad, Andrew, 2020. "How important are product attributes for U.S. lamb imports?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 23(3), August.
    3. Zhang, Mingxia & Sexton, Richard J., 2000. "Optimal Commodity Promotion In Imperfectly Competitive Markets," 2000 Annual meeting, July 30-August 2, Tampa, FL 21823, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Byeong‐Il Ahn & Hyunok Lee, 2010. "An equilibrium displacement approach to oligopoly market analysis: an application to trade in the Korean infant formula market," Agricultural Economics, International Association of Agricultural Economists, vol. 41(2), pages 101-109, March.
    5. Lee, John G. & Paarlberg, Philip L. & Eales, James S., 2001. "Trade Policy Under Imperfect Competition: An Assessment Of The Trq On Lamb Meat," 2001 Annual Meeting, July 8-11, 2001, Logan, Utah 36076, Western Agricultural Economics Association.
    6. Gervais Jean-Philippe & Rude James I, 2003. "Some Unintended Consequences of TRQ Liberalization," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 1(1), pages 1-18, May.
    7. Janda, Karel, 2009. "Signaling the Strength of a Market Entrant," MPRA Paper 17007, University Library of Munich, Germany.

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