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Trade Liberalization in International Dairy Markets: Estimated Impacts


  • Langley, Suchada V.
  • Somwaru, Agapi
  • Normile, Mary Anne


A partial-equilibrium, multiple-commodity, multiregion model of agricultural policy and trade is used to simulate the effects of changes in domestic and trade policy on dairy production, consumption, prices, and trade. Simulations using the ERS-Penn State Trade model analyze the effects of separately and concurrently relaxing domestic income and price supports, and import restrictions and export subsidies, with special attention to tariff-rate and milk production quotas. Modeling results indicate that liberalization would reduce world dairy product supplies and increase the value of dairy trade.

Suggested Citation

  • Langley, Suchada V. & Somwaru, Agapi & Normile, Mary Anne, 2006. "Trade Liberalization in International Dairy Markets: Estimated Impacts," Economic Research Report 7214, United States Department of Agriculture, Economic Research Service.
  • Handle: RePEc:ags:uersrr:7214

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    References listed on IDEAS

    1. Chavas, Jean-Paul & Cox, Thomas L. & Jesse, Edward, 1998. "Spatial allocation and the shadow pricing of product characteristics," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 18(1), January.
    2. Sylvain Larivière & Karl Meilke, 1999. "An Assessment of Partial Dairy Trade Liberalization on the U.S., EU–15 and Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 47(5), pages 59-73, December.
    3. Salathe, Larry E. & Price, J. Michael & Gadson, Kenneth E., 1982. "The Food and Agricultural Policy Simulator," Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 2.
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    Cited by:

    1. Somwaru, Agapi & Dirkse, Steve, 2012. "Dynamic PEATSim Model: Documenting its Use in Analyzing Global Commodity Markets," Technical Bulletins 184304, United States Department of Agriculture, Economic Research Service.
    2. Bitan Mondal, Bitan Mondal & Smita Sirohi, Smita Sirohi & Vishal Thorat, Vishal Thorat, 2012. "Impact of ASEAN-India Free Trade Agreement on Indian Dairy Trade: A Quantitative Approach," MPRA Paper 40790, University Library of Munich, Germany.
    3. Heinz Peter Witzke & Andrea Zintl & Axel Tonini, 2009. "The Common Agricultural Policy SIMulation (CAPSIM) Model: Dairy Reform and Western Balkan Countries Accession Scenarios," JRC Working Papers JRC50411, Joint Research Centre (Seville site).
    4. Asci, Serhat C. & Paggi, Mechel & Yamazaki, Fumiko, 2016. "Implications of Trans-Pacific Partnership for the US Dairy Industry," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 19(B).
    5. Leudjou, Roland R., 2012. "The Doha Round and Food Security in the Dairy Sector in Cameroon: A Global Simulation Model (GSIM) Approach," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 13(1).
    6. 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.
    7. repec:wsi:medjxx:v:03:y:2011:i:02:n:s1793812011000405 is not listed on IDEAS


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