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An Economic Analysis of Quarantine: The Economies of Australia's Ban on New Zealand Apple Imports

Author

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  • Arthur, Matthew

Abstract

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.

Suggested Citation

  • Arthur, Matthew, 2006. "An Economic Analysis of Quarantine: The Economies of Australia's Ban on New Zealand Apple Imports," 2006 Conference, August 24-25, 2006, Nelson, New Zealand 31959, New Zealand Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:nzasin:31959
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    File URL: http://purl.umn.edu/31959
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    References listed on IDEAS

    as
    1. James, Sallie & Anderson, Kym, 1998. "On the need for more economic assessment of quarantine/SPS policies," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 42(4), December.
    2. Roberts, Donna & Josling, Timothy E. & Orden, David, 1999. "A Framework for Analyzing Technical Trade Barriers in Agricultural Markets," Technical Bulletins 33560, United States Department of Agriculture, Economic Research Service.
    3. John C. Beghin & Jean-Christophe Bureau, 2001. "Quantification of Sanitary, Phytosanitary, and Technical Barriers to Trade for Trade Policy Analysis," Food and Agricultural Policy Research Institute (FAPRI) Publications 01-wp291, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
    4. Allison, Lisa & Ricks, Donald J., 1986. "Juice Apple Markets and Price Analysis," Agricultural Economic Report Series 201359, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    5. Maskus, Keith E. & Wilson, John S. & Tsunehiro Otsuki, 2000. "Quantifying the impact of technical barriers to trade : a framework for analysis," Policy Research Working Paper Series 2512, The World Bank.
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