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Options for Supply Management in Canada with Trade Liberalization

  • Barichello, Richard R.
  • Cranfield, John A.L.
  • Meilke, Karl D.

Following the Uruguay Round of trade negotiations Canada replaced its import quotas on sensitive products with tariff rate quotas. The over-quota tariffs on those products operating under domestic supply management schemes (dairy and poultry products) ranged from a low of 155 percent on turkey to a high of 299 percent on butter. These tariffs have effectively blocked over quota imports and are likely to continue to prevent imports, under most market conditions, given the likely range of tariff cuts proposed for sensitive products following a successful completion of the Doha Round. However, it’s argued that tariff cuts in the post-Doha Round will severely limit Canada’s ability to restrict imports and it is important to use the next 15 years to better position the supply managed industries to compete at that time. The paper reviews a number of reform options that could be pursued ranging from a full buy-out of current marketing quotas, the introduction of two types of marketing quota, to providing partial compensation of short-term income losses. The advantages and disadvantages of each option are discussed with respect to their costs and impacts on income and asset values.

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File URL: http://purl.umn.edu/6124
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Paper provided by Canadian Agricultural Trade Policy Research Network in its series Commissioned Papers with number 6124.

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Date of creation: 2007
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Handle: RePEc:ags:catpcp:6124
Contact details of provider: Web page: http://www.catrade.org/
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  1. Moschini, Giancarlo, 1991. "Economic issues in tariffication: an overview," Agricultural Economics, Blackwell, vol. 5(2), pages 101-120, June.
  2. Rude, James & Meilke, Karl D., 2006. "Canadian Agriculture and the Doha Development Agenda: The Challenges," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 7(1).
  3. Anonymous & Meilke, Karl D. & Knutson, Ronald D. & Ochoa, Rene F. & Rude, James, 2006. "Achieving NAFTA Plus," 2006 NAAMIC Workshop III: Achieving NAFTA Plus 163871, North American Agrifood Market Integration Consortium (NAAMIC).
  4. Brink, Lars, 2005. "WTO 2004 Agriculture Framework: Disciplines on Distorting Domestic Support," Working Papers 14587, International Agricultural Trade Research Consortium.
  5. Edwards, Geoff W., 2003. "The story of deregulation in the dairy industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(1), March.
  6. Skully, David W., 2001. "Economics of Tariff-Rate Quota Administration," Technical Bulletins 184332, United States Department of Agriculture, Economic Research Service.
  7. Skully, David W., 2001. "Economics Of Tariff-Rate Quota Administration," Technical Bulletins 33576, United States Department of Agriculture, Economic Research Service.
  8. Geoff Edwards, 2003. "The story of deregulation in the dairy industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(1), pages 75-98, 03.
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