Production Subsidy and Countervailing Duties in Vertically Related Markets: The Hog-Pork Case Between Canada and the United States
This paper analyzes U.S. countervailing import duties aimed at offsetting the effects of a Canadian hog production subsidy. Approximate countervailing duty formulae for two alternative objectives are derived, the permissible range of these duties is illustrated, and empirical evidence is provided. To restore equilibrium at the pre-subsidy level in the U.S. hog market, a countervailing duty on hog imports suffices; this duty should be less than the unit hog production subsidy. To restore equilibrium in both the U.S. hog and pork markets, countervailing duties in both hog and pork imports is required. Such duties should be less than the unit subsidy, and the duty on pork should be less than the duty on hogs.
|Date of creation:||Jul 1992|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.fapri.iastate.edu/Email:
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ias:fpaper:91-gatt6. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.