Document Type

Working Paper

Publication Date

1-16-2012

Working Paper Number

WP #11014, January 2012

Abstract

We analyze 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 have a strong effect on trade and welfare with a tariff equivalent above 113% of average real world prices over the period analyzed.

Publication Status

Published in The World Economy, Vol. 35 no. 8 (August 2012): 1006-1021.

JEL Classification

F13, F14, Q17

File Format

application/pdf

Length

29 pages

File Function

This draft: January 16, 2012 (Original draft: August 2011)

Included in

Economics Commons

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