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Safeguards Inquiry into the Import of Pigmeat

Author

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  • Productivity Commission

Abstract

While Australian pigmeat producers are feeling pressure from substantially higher feed costs, in the Productivity Commission’s assessment these circumstances do not meet the WTO criteria for safeguards action. The WTO Safeguards Agreement requires evidence that significant increases in imports have caused serious injury to the local industry. However, although imports have been increasing in recent years, the Productivity Commission found that they had broadly met increases in consumer demand, without driving down local producer prices. A sharp fall in industry profitability in the second half of 2007 was caused by an unprecedented increase in feed grain costs, which increased production costs by 40-50 cents per kilo of pigmeat. This rise added to substantial increases in feed grain prices in 2006. Without these higher feed prices, producers would have remained profitable over 2007.

Suggested Citation

  • Productivity Commission, 2008. "Safeguards Inquiry into the Import of Pigmeat," Inquiry Reports, Productivity Commission, Government of Australia, number 44.
    • Handle: RePEc:ris:prodir:44
    Note: 190 pages
    as

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    File URL: http://www.pc.gov.au/__data/assets/pdf_file/0004/78457/pigmeatsafeguards.pdf
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    File URL: http://www.pc.gov.au/projects/inquiry/pigmeatsafeguards/docs/finalreport
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    References listed on IDEAS

    as
    1. Sykes, Alan O., 2006. "The WTO Agreement on Safeguards: A Commentary," OUP Catalogue, Oxford University Press, number 9780199277407.
    2. A. Carbone & G. Kaniadakis & A. M. Scarfone, 2007. "Tails and Ties," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 57(2), pages 121-125, May.
    3. Sykes, Alan O., 2003. "The safeguards mess: a critique of WTO jurisprudence," World Trade Review, Cambridge University Press, vol. 2(3), pages 261-295, November.
    4. Griffith, Garry & I'Anson, Kym & Hill, Debbie & Lubett, ROland & Vere, David, 2001. "Previous Demand Elasticity Estimates For Australian Meat Products," Research Reports 280777, New South Wales Department of Primary Industries Research Economists.
    5. Unknown, 2005. "Australian Pigmeat Industry," Inquiry Reports 31893, Productivity Commission.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Griffith, Garry R. & Malcolm, Bill & Mounter, Stuart W. & Slattery, Henry, 2010. "Old model, new problem: when should you update a model and what happens when you do?," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 18, pages 1-16.

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    More about this item

    Keywords

    pork; swine; world trade; tariffs; meat products;
    All these keywords.

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics

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