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The Trade and Welfare Impact of Australian Quarantine Policies: The Case of Pigmeat

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  • Beghin, John C.
  • Melatos, Mark

Abstract

Abstract: We analyze the trade and welfare impact of quarantine measures imposed by Australiaon imports of pigmeat. In particular, we account for changes to Australia's pigmeat quarantinepolicy over time including those changes related to the recent resolution of a WTO disputebetween Australia and the European Union. Using a random utility model, and applying it tocorner solutions in import decisions, tariff equivalents (by major trading partner) are estimatedfor the different pigmeat quarantine regimes implemented by Australia during the period 1988-2009. The welfare impact on consumers, producers, and foreign exporters is computed using apartial equilibrium model calibrated on the econometric estimates. The quarantine regimes havea strong effect on trade and welfare with a tariff equivalent above 113% of average real worldprices over the period analyzed.

Suggested Citation

  • Beghin, John C. & Melatos, Mark, 2012. "The Trade and Welfare Impact of Australian Quarantine Policies: The Case of Pigmeat," Staff General Research Papers Archive 34134, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:34134
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    References listed on IDEAS

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    6. Yue, Chengyan & Beghin, John C., 2007. "The Tariff Equivalent and Forgone Trade Effects of Prohibitive Technical Barriers to Trade," Staff General Research Papers Archive 12852, Iowa State University, Department of Economics.
    7. Tanner, Carolyn & Nairn, Malcolm, 1997. "Principles of Australian Quarantine," 1997 Conference (41st), January 22-24, 1997, Gold Coast, Australia 135413, Australian Agricultural and Resource Economics Society.
    8. David Hummels & Alexandre Skiba, 2004. "Shipping the Good Apples Out? An Empirical Confirmation of the Alchian-Allen Conjecture," Journal of Political Economy, University of Chicago Press, vol. 112(6), pages 1384-1402, December.
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    Cited by:

    1. Boza, Sofía, 2013. "Assessing the impact of sanitary, phytosanitary and technical requirements on food and agricultural trade: what does current research tell us?," Papers 926, World Trade Institute.
    2. Boza, Sofía, 2016. "Determinants of SPS notification submissions for Latin American WTO members," Papers 970, World Trade Institute.
    3. Diego Armando Yañez Meza, 2016. "Responsabilidad Constitucional: El Juez de Tutela en la reparación de daños," Books, Universidad Externado de Colombia, Facultad de Derecho, number 860.

    More about this item

    Keywords

    pigmeat; pork; australia; non-tariff measure; NTM; quarantine; import ban; trade;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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