Dairy Tariff-Quota Liberalization: Contrasting Bilateral and Most Favored Nation Reform Options
A highly disaggregated, “tariff line,” source-differentiated, partial equilibrium model of U.S. specialty cheese imports is developed to investigate reform options for tariff-rate quotas (TRQs). A mixed-complementarity framework is used to represent bilateral and most favored nation (MFN) tariff quotas. The impacts of liberalizing U.S. specialty cheese imports via bilateral and MFN quota expansions, out-of-quota tariff cuts, and simultaneous liberalization scenarios are evaluated. We find that the path of liberalization is quite different, depending on the reform approach undertaken, particularly if the United States adopted an MFN quota administration mechanism for specialty cheese imports. Copyright 2007, Oxford University Press.
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Volume (Year): 91 (2007)
Issue (Month): 3 ()
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