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Commodity Trade Analysis in a General Equilibrium Framework BSE Restrictions on Beef Imports from the United States and Canada

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  • Tsigas, Marinos
  • Giamalva, John
  • Grossman, Nicholas
  • Kowalski, Joseph

Abstract

This paper estimates the economic impacts of BSE-related restrictions imposed on beef imports from the United States and Canada in 2004. The analysis is based on a simulation framework which consists of a partial equilibrium (PE) model and a general equilibrium (GE) model. The PE model focuses on bilateral trade in beef products at the HS six-digit level. The GE model is an economy-wide computable general equilibrium model of bilateral trade specified at an aggregate product level. It is estimated that the long-term effects of the 2004 BSE bans were a $3.1 billion, or 84 percent decline in annual U.S. beef exports; a 6 percent decline in the supply of U.S. beef cattle; a $1.3 billion, or 9 percent decline in beef cattle sales revenue; and a $2.7 billion, or 7 percent decline in beef packing sales revenue.

Suggested Citation

  • Tsigas, Marinos & Giamalva, John & Grossman, Nicholas & Kowalski, Joseph, 2008. "Commodity Trade Analysis in a General Equilibrium Framework BSE Restrictions on Beef Imports from the United States and Canada," Conference papers 331737, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331737
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    References listed on IDEAS

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    2. Rae, Allan N. & Strutt, Anna, 2007. "The WTO, Agricultural Trade Reform and the Environment: Nitrogen and Agro-chemical Indicators for the OECD," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 8(1), pages 1-22.
    3. Allan Rae & Anna Strutt, 2001. "Livestock production and the environment: Some impacts of growth and trade liberalisation," New Zealand Economic Papers, Taylor & Francis Journals, vol. 35(2), pages 176-194.
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