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The Problems And Pitfalls In Modeling International Dairy Trade Liberalization

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  • Meilke, Karl D.
  • Lariviere, Sylvain

Abstract

Contact for this paper: Dr. Karl Meilke, Department of Agricultural Economics and Business, Guelph, Ontario N1G 2W1, Canada. The international dairy sector is one of the most heavily protected commodity sectors in agriculture. Following the Uruguay Round of multilateral trade liberalization all nontariff barriers to trade were converted, through the process of tariffication, into tariffs. However, in the dairy sector, the border measure most commonly adopted by developed countries was a system of tariff rate quotas. Tariff rate quotas are two-tiered tariffs which allow a small quantity of the product to be imported at a low or zero tariff, while quantities above the minimum access amount are charged much higher and often prohibitive tariffs. Tariff rate quotas cause the excess supply curve facing an importing country to be discontinuous at the minimum access amount. The objective of this paper is to review key issues related to modeling trade liberalization for the international dairy economy, given the existence of tariff rate quotas and export subsidies.

Suggested Citation

  • Meilke, Karl D. & Lariviere, Sylvain, 1999. "The Problems And Pitfalls In Modeling International Dairy Trade Liberalization," Working Papers 14579, International Agricultural Trade Research Consortium.
  • Handle: RePEc:ags:iatrwp:14579
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    File URL: http://purl.umn.edu/14579
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    References listed on IDEAS

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    1. Griffith, Garry & Lattimore, Ralph & Robertsonf, John, 1993. "Domestic dairy policies and international market adjustment in a simplified model of world dairy products trade," Journal of Policy Modeling, Elsevier, vol. 15(2), pages 141-156, April.
    2. Tyers,Rod & Anderson,Kym, 2011. "Disarray in World Food Markets," Cambridge Books, Cambridge University Press, number 9780521172318, May.
    3. Moschini, Giancarlo, 1991. "Economic issues in tariffication: an overview," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 5(2), June.
    4. Shoven,John B. & Whalley,John, 1992. "Applying General Equilibrium," Cambridge Books, Cambridge University Press, number 9780521266550, May.
    5. S. Devadoss & Patrick C. Westhoff & Michael D. Helmar & Eric Grundmeier & Karl D. Skold & William H. Meyers & Stanley R. Johnson, 1989. "FAPRI Modeling System at CARD: A Documentation Summary, The," Food and Agricultural Policy Research Institute (FAPRI) Publications 89-tr13, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
    6. Meilke, Karl D. & Sarker, Rakhal & Le Roy, Danny G., 1996. "Analyzing The Potential For Increased Trade In Dairy Products: A Canadian Perspective," Understanding Canada\United States Dairy Disputes; Proceedings of the 2nd Canada\U.S. Agricultural and Food Policy Systems Information Workshop-1996 16959, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    7. Karl Meilke & Rakhal Sarker & Danny Roy, 1998. "The Potential for Increased Trade in Milk and Dairy Products between Canada and the United States under Trade Liberalization," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 46(2), pages 149-169, July.
    8. S. Devadoss & Patrick C. Westhoff & Michael D. Helmar & Eric Grundmeier & Karl D. Skold & William H. Meyers & Stanley R. Johnson, 1989. "FAPRI Modeling System at CARD: A Documentation Summary, The," Center for Agricultural and Rural Development (CARD) Publications 89-tr13, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    9. Anonymous, 1996. "The Canadian Dairy Sector: Structure, Performance And Policies," Understanding Canada\United States Dairy Disputes; Proceedings of the 2nd Canada\U.S. Agricultural and Food Policy Systems Information Workshop-1996 16950, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    10. repec:wsi:wschap:9789813108448_0016 is not listed on IDEAS
    11. Glenn W. Harrison & Thomas F. Rutherford & David G. Tarr, 2017. "Quantifying The Uruguay Round," World Scientific Book Chapters,in: Trade Policies for Development and Transition, chapter 16, pages 363-388 World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. Grant, Jason H. & Hertel, Thomas W. & Rutherford, Thomas F., 2006. "Extending General Equilibrium to the Tariff Line: U.S. Dairy in the Doha Development Agenda," 2006 Annual meeting, July 23-26, Long Beach, CA 21409, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Dell'Aquila, Crescenzo & Sarker, Rakhal & Meilke, Karl D., 1999. "Regionalism And Trade In Agrifood Products," Working Papers 14591, International Agricultural Trade Research Consortium.
    3. Carvalho, Glauco Rodrigues & Bessler, David & Hemme, Torsten & Schröer-Merker, Eva, 2015. "Understanding International Milk Price Relationships," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196692, Southern Agricultural Economics Association.
    4. Meilke, Karl D. & Huff, Karen, 2001. "Trade Liberalization Under Nafta: Where From Here?," Trade Liberalization Under NAFTA: Report Card on Agriculture; Proceedings of the 6th Agricultural and Food Policy Systems Information Workshop -2000 16819, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.

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