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Economic Implications Of The Australia-U.S. Free Trade Agreement For U.S. Dairy Markets And Domestic Dairy Farm Programs

Author

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  • Alston, Julian M.
  • Sumner, Daniel A.
  • Balagtas, Joseph Valdes
  • Brunke, Henrich

Abstract

We develop a simulation model to analyze the effects on U.S. milk markets of an Australia-U.S. free trade agreement. An important contribution to the literature is the derivation of explicit supply and demand relationships for milk components, which allows an analysis of long-term production, consumption, and trade patterns that is not tied to specific products. Simulations indicate that increased imports from Australia, resulting from bilateral trade liberalization, would result in modest reductions in U.S. milk prices and production.

Suggested Citation

  • Alston, Julian M. & Sumner, Daniel A. & Balagtas, Joseph Valdes & Brunke, Henrich, 2004. "Economic Implications Of The Australia-U.S. Free Trade Agreement For U.S. Dairy Markets And Domestic Dairy Farm Programs," 2004 Annual meeting, August 1-4, Denver, CO 20164, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea04:20164
    DOI: 10.22004/ag.econ.20164
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    References listed on IDEAS

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