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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
    DOI: 10.22004/ag.econ.14579
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    References listed on IDEAS

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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, August 12-18, 2006, Queensland, Australia 25305, International Association of Agricultural Economists.
    2. Meilke, Karl D. & Huff, Karen, 2001. "Trade Liberalization Under Nafta: Where From Here?," Proceedings of the 6th Agricultural and Food Policy Systems Information Workshop, 2000: Trade Liberalization Under NAFTA: Report Card on Agriculture 16819, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    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. Dell'Aquila, Crescenzo & Sarker, Rakhal & Meilke, Karl D., 1999. "Regionalism And Trade In Agrifood Products," Working Papers 14591, International Agricultural Trade Research Consortium.

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