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Dairy Trq Liberalization: Contrasting Bilateral and Most Favored Nation Reform Options

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  • Grant, Jason H.
  • Hertel, Thomas W.
  • Rutherford, Thomas F.

Abstract

We develop a highly disaggregated, ìtariff lineî, source-differentiated partial equilibrium model of U.S. specialty cheese imports to investigate alternative reform options for tariffrate quotas. A mixed-complementarity framework is used to represent bilateral and multilateral tariff-quota administration methods within the U.S. dairy industry. The impact of liberalizing U.S. specialty cheese imports via bilateral and multilateral tariffrate quota expansions, out-of-quota tariff cuts, and simultaneous liberalization scenarios is evaluated. We find that the path of liberalization is quite different, depending on the reform approach undertaken. The results have important policy implications in the agricultural negotiations.

Suggested Citation

  • Grant, Jason H. & Hertel, Thomas W. & Rutherford, Thomas F., 2008. "Dairy Trq Liberalization: Contrasting Bilateral and Most Favored Nation Reform Options," Conference papers 331733, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331733
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    References listed on IDEAS

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