An Economic Analysis of Quarantine: The Economies of Australia's Ban on New Zealand Apple Imports
The quarantine policy decision-making process in Australia is subject to the principles of the World Trade Organisation's SPS Agreement. It is primarily based on the risks and associated economic costs accruing to producers in the event of disease entry. The costs of a quarantine measure in terms of forgone trade benefits are not considered. The impact associated with this asymmetric approach is identified by demonstrating the gains to consumers which may arise through liberalised markets using a case study of the Australian apple industry. A partial equilibrium analysis is used to show the impacts of apple market liberalisation, which can be expected to yield gains to consumers which are greater than the economic costs to on producers.
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