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The impact of US fresh milk production standards on dairy trade

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  • Owen, P. Dorian
  • Winchester, Niven

Abstract

We examine the impact of proposed changes in US legislation to allow greater use of concentrated dairy products when producing fresh milk commodities. Although this change will allow dairy producers to partially circumvent high tariff-rate quotas (TRQs) for fresh milk products, changes in dairy production and trade are small, reflecting limited use of concentrated dairy products as inputs to fresh milk products. We also show that, at the global level, high trade barriers on other dairy commodities do not have a significant impact on trade in concentrated milk products. We conclude that trade negotiations should focus on the removal of tariffs and TRQs.

Suggested Citation

  • Owen, P. Dorian & Winchester, Niven, 2014. "The impact of US fresh milk production standards on dairy trade," Journal of Policy Modeling, Elsevier, vol. 36(6), pages 1008-1021.
    • Handle: RePEc:eee:jpolmo:v:36:y:2014:i:6:p:1008-1021
    DOI: 10.1016/j.jpolmod.2014.11.004
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    3. Sophie Drogue & Jean-Philippe Gervais, 2011. "Policy brief NTM-impact project: policy implications from case studies," Working Papers hal-02807385, HAL.
    4. Abbassi, Abdessalem & Tamini, Lota D. & Dakhlaoui, Ahlem, 2015. "Import quota allocation between regions under Cournot competition," Economic Modelling, Elsevier, vol. 51(C), pages 484-490.

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    More about this item

    Keywords

    Non-tariff barriers; Dairy trade; US milk production standards; Numerical simulation; Gravity modelling;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

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