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Dairy Tariff‐Quota Liberalization: Contrasting Bilateral and Most Favored Nation Reform Options
Author(s) -
Grant Jason H.,
Hertel Thomas W.,
Rutherford Thomas F.
Publication year - 2009
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1111/j.1467-8276.2009.01263.x
Subject(s) - tariff , liberalization , complementarity (molecular biology) , international economics , economics , free trade , international trade , market economy , genetics , biology
A highly disaggregated, “tariff line,” source‐differentiated, partial equilibrium model of U.S. specialty cheese imports is developed to investigate reform options for tariff‐rate quotas (TRQs). A mixed‐complementarity framework is used to represent bilateral and most favored nation (MFN) tariff quotas. The impacts of liberalizing U.S. specialty cheese imports via bilateral and MFN quota expansions, out‐of‐quota tariff cuts, and simultaneous liberalization scenarios are evaluated. We find that the path of liberalization is quite different, depending on the reform approach undertaken, particularly if the United States adopted an MFN quota administration mechanism for specialty cheese imports.