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Extending General Equilibrium to the Tariff Line: U.S. Dairy in the Doha Development Agenda

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  • Grant, Jason H.
  • Hertel, Thomas W.
  • Rutherford, Thomas F.

Abstract

We extend general equilibrium (GE) analysis to the “tariff line” by embedding a detailed, partial equilibrium (PE) model of the global dairy sector into a global GE framework. A mixed-complementarity formulation PE model is used to represent bilateral and multilateral dairy trade policy within the broader GE framework with US import protection as our focal point. The impact of liberalizing US dairy imports via bilateral and multilateral tariff-rate quota expansions, out-of-quota tariff cuts, and simultaneous liberalization scenarios is evaluated. We find that the path of liberalization is quite different, depending on the reform approach undertaken. The results have important policy implications for agricultural negotiations in the Doha Development Agenda.

Suggested Citation

  • 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," Conference papers 331564, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331564
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    1. Deppermann, A. & Grethe, H. & Offermann, F., 2011. "Effekte einer EU-Agrarmarktliberalisierung auf Betriebsebene: Simulationen anhand eines europäischen Agrarsektormodells und eines Angebotsmodells für den deutschen Agrarsektor," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 46, March.
    2. Ko, Jong-Hwan & Britz, Wolfgang, 2013. "Does Regional and Sectoral Aggregation Matter? Sensitivity Analysis in the Context of an EU-South Korea FTA," Conference papers 332358, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Ramos, Maria Priscila & Bureau, Jean-Christophe & Salvatici, Luca, 2007. "Shipping the good beef out: EU trade liberalization to Mercosur exports," Working Papers 7215, TRADEAG - Agricultural Trade Agreements.
    4. Narayanan, Badri G. & Hertel, Thomas W. & Horridge, J. Mark, 2010. "Disaggregated data and trade policy analysis: The value of linking partial and general equilibrium models," Economic Modelling, Elsevier, vol. 27(3), pages 755-766, May.
    5. Caron, Justin, 2012. "Estimating carbon leakage and the efficiency of border adjustments in general equilibrium — Does sectoral aggregation matter?," Energy Economics, Elsevier, vol. 34(S2), pages 111-126.
    6. Listorti, Giulia & Tonini, Axel & Kempen, Markus & Adenauer, Marcel, 2013. "How to Implement WTO Scenarios in Simulation Models: Linking the TRIMAG Tariff Aggregation Tool to Capri," 135th Seminar, August 28-30, 2013, Belgrade, Serbia 160388, European Association of Agricultural Economists.
    7. Ramos, Maria Priscila, 2007. "Politique Commerciale, Qualité et Environnement: une Application aux Négociations Commerciales entre l’Union Européenne et le Mercosur," MPRA Paper 12640, University Library of Munich, Germany.
    8. Michał Antoszewski, 2019. "Assessment of Energy-Related Technological Shocks Within a CGE Model for the Polish Economy," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 1, pages 9-45.
    9. Frank van Tongeren & Robert Koopman & Stephen Karingi & John Reilly & Joseph Francois, 2021. "Back to the Future: A 25-Year Retrospective on GTAP and the Shaping of a New Agenda," World Scientific Book Chapters, in: Peter Dixon & Joseph Francois & Dominique van der Mensbrugghe (ed.), POLICY ANALYSIS AND MODELING OF THE GLOBAL ECONOMY A Festschrift Celebrating Thomas Hertel, chapter 3, pages 41-93, World Scientific Publishing Co. Pte. Ltd..
    10. Binfield, Julian & Boulanger, Pierre & Davids, Tracy & Dudu, Hasan & Ferrari, Emanuele & Mainar-Causape, Alfredo & Meyer, Ferdi, 2019. "Enhancing CGE analysis with PE modelling of Kenyan agricultural and trade policy reforms," 2019 Sixth International Conference, September 23-26, 2019, Abuja, Nigeria 295839, African Association of Agricultural Economists (AAAE).
    11. Narayana, Badri G. & Hertel, Thomas W. & Horridge, J. Mark, 2010. "Linking Partial and General Equilibrium Models: A GTAP Application Using TASTE," Technical Papers 283427, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    12. Fofana, Ismaël & Cockburn, John & Decaluwé, Bernard & Mabugu, Ramos & Chitiga, Margaret & Latigo, Alfred & Abdourahman, Omar, 2006. "A Gender-Aware Integrated Macro-Micro Model for Evaluating Impacts of Policies on Poverty Reduction in Africa: The Case of South Africa," Conference papers 331562, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    13. David Abler & Martin Banse & Marijke Kuiper & Pim Roza & Federica Santuccio, 2009. "EU Agricultural Trade Relations with Asian Countries," JRC Research Reports JRC52733, Joint Research Centre (Seville site).
    14. Braymen, Charles B., 2011. "Sectoral structure, heterogeneous plants, and international trade," Economic Modelling, Elsevier, vol. 28(4), pages 1967-1976, July.
    15. Karplus, Valerie J. & Paltsev, Sergey & Babiker, Mustafa & Reilly, John M., 2013. "Should a vehicle fuel economy standard be combined with an economy-wide greenhouse gas emissions constraint? Implications for energy and climate policy in the United States," Energy Economics, Elsevier, vol. 36(C), pages 322-333.
    16. Döbeling, Tatjana & Pelikan, Janine, 2021. "The Market Dynamics of Tariff Rate Quotas in the Case of Ceta," 2021 Conference, August 17-31, 2021, Virtual 315282, International Association of Agricultural Economists.

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    More about this item

    Keywords

    Research Methods/ Statistical Methods; International Relations/Trade;

    JEL classification:

    • F01 - International Economics - - General - - - Global Outlook
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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