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An Economic Analysis of the Impacts of Trade Liberalization on Asian Dairy Market

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  • Peng, Tingjun
  • Cox, Thomas L.

Abstract

The objective of this paper is to develop an economic analysis of the impacts of further trade liberalization on Asian dairy markets. In order to achieve this, we first make a review of Asian dairy policies from the perspective of domestic support, market access and export subsidy. Then a world dairy model is employed, which reflects both vertical and spatial characteristics of the world dairy sector. We analyze the separate and combined impacts of eliminating Japan's domestic dairy subsidy, removing other Asian countries dairy trade policies excluding Japan, eliminating all Asian countries domestic dairy and trade policies, and multilateral dairy trade liberalization around the world. We find that Japan and Korea's producers will suffer much bigger losses from trade liberalization than other countries in the region; Japan and Korea's producers get much more protection from trade distortions than from domestic subsidy; India is a potential competitive exporter in Asia and the world; China is a potential importer in Asia but a potential competitive exporter in the world; South East Asia and other South Asian countries are potential importers in Asia and the world; greater trade liberalization around the world will help to increase exports for potential exporters and/or ease importing pressure for potential importers; the order of competitiveness of Asian economies from least competitive to most competitive is Japan, Korea, South East Asia, other South Asia, China and India; China and India consumers will lose from world trade liberalization, but the other countries consumer surplus will increase.

Suggested Citation

  • Peng, Tingjun & Cox, Thomas L., 2005. "An Economic Analysis of the Impacts of Trade Liberalization on Asian Dairy Market," Staff Papers 12630, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    • Handle: RePEc:ags:wisagr:12630
    DOI: 10.22004/ag.econ.12630
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    References listed on IDEAS

    as
    1. Dong, Fengxia, 2006. "The outlook for Asian dairy markets: The role of demographics, income, and prices," Food Policy, Elsevier, vol. 31(3), pages 260-271, June.
    2. Thomas L. Cox & Jonathan R. Coleman & Jean-Paul Chavas & Yong Zhu, 1999. "An Economic Analysis of the Effects on the World Dairy Sector of Extending Uruguay Round Agreement to 2005," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 47(5), pages 169-183, December.
    3. Yong Zhu & Thomas L. Cox & Jean-Paul Chavas, 1999. "An Economic Analysis of the Effects of the Uruguay Round Agreement and Full Trade Liberalization on the World Dairy Sector," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 47(5), pages 187-200, December.
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    Cited by:

    1. John C. Beghin, 2005. "Dairy Markets in Asia: An Overview of Recent Findings and Implications," Center for Agricultural and Rural Development (CARD) Publications 05-bp47, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    2. 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), pages 1-16, April.
    3. Peng, Tingjun & Cox, Thomas L., 2006. "An economic analysis of the impacts of trade liberalization on Asian dairy market," Food Policy, Elsevier, vol. 31(3), pages 249-259, June.
    4. Beghin, John C., 2006. "Evolving dairy markets in Asia: Recent findings and implications," Food Policy, Elsevier, vol. 31(3), pages 195-200, June.
    5. Ahmed, Wasim & Hussain, Safdar & Jafar, Rana Muhammad Sohail & Guang-Ju, Wang & Rabnawaz, Ambar & Saqib, Zulkaif Ahmed & JianZhou, Yang, 2016. "Impacts of Trade Liberalization on Dairy Industry in China," MPRA Paper 70385, University Library of Munich, Germany.

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