Title

The trade and welfare impact of Australian quarantine policies: the case of pigmeat

Campus Units

Economics

Document Type

Article

Publication Version

Submitted Manuscript

Publication Date

2012

Journal or Book Title

The World Economy

Volume

35

Issue

8

First Page or Article ID Number

1006

Last Page

1021

DOI

10.1111/j.1467-9701.2012.01459.x

Abstract

We analyse the trade and welfare impact of quarantine measures imposed by Australia on imports of pigmeat. In particular, we account for changes to Australia’s pigmeat quarantine policy over time including those changes related to the recent resolution of a WTO dispute between Australia and the European Union. Using a random utility model, and applying it to corner solutions in import decisions, tariff equivalents (by major trading partner) are estimated for 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 a partial equilibrium model calibrated on the econometric estimates. The quarantine regimes had a strong effect on trade and welfare with a tariff equivalent above 113 per cent of average real-world prices over the period analysed.

JEL Classification

F13, F14, Q17

Comments

This is a working paper of an article from The World Economy 35 (2012): 1006, doi:10.1111/j.1467-9701.2012.01459.x