Dairy Disputes in North America: A Case Study Tom Cox University of Wisconsin-Madison Danny Le Roy The University of Lethbridge Ellen Goddard University.

Slides:

Advertisements

Similar presentations

International Trade.

Advertisements

Handouts for Chapters ECO 1003 Handouts for Chapters

Trade Agreements Unit 2 Activity 10. GATT - General Agreement on Tariffs and Trade Each agreement was called a round Geneva Annecy Torquay Geneva II Dillon.

In this chapter, look for the answers to these questions:

The Impact of Current Doha Round Agricultural Negotiations on the Canadian Dairy Industry Xiangxiang Ye April 4th 2006.

World Trade Organization Impacts on China and Hong Kong.

Global Sugar Policy Reform John Beghin and Amani El-Obeid Economics and CARD Iowa State University Silverado Symposium on Agricultural Policy Reform University.

Economic Implications of the AUS-FTA for U.S. Dairy Markets and Policy Presentation by Joseph Balagtas at the Silverado Symposium on Agricultural Policy.

11. International Trade. The Gains from Trade The law of comparative advantage –specialisation as the basis for trade –absolute advantage –comparative.

Dairy Disputes in North America: A Case Study Tom Cox University of Wisconsin-Madison Danny Le Roy The University of Lethbridge Ellen Goddard University.

Application: International Trade

Trade and Protectionism

Building Sustainable Agriculture and Food Systems in Europe and globally – A critical review of the Common Agriculture Policy and proposals for change.

Application: International trade

7. Canada and the United States 7.1. The Canada-US Relationship 7.2. Trade and NAFTA 7.3. Defending North America 7.4. North American Security and Terrorism.

PART FOUR: CANADA AND THE WORLD 9. Canada and Global Trade 10. Canada and Europe* 11. Official Development Assistance 12. Canada and the Asia-Pacific*

1 Proposed Canada-EU FTA and Agricultural Trade David Blandford Regional Trade Agreements (RTAs): New developments and expectations.

Extremely Competitive Markets Part 2: Open Economies.

Agriculture and International Trade

Assessment of Quotas, Tariffs and Taxes on the U.S. - Canada Softwood Lumber Dispute Patrick Shannon March 10, 2008 ECON 543.

EU farm policy until the Uruguay Round Niek Koning Agricultural Economics and Rural Policy.

Free Trade? Despite policy reforms enacted as a result of the Uruguay Round Agreement on Agriculture, global dairy markets remain among the most protected.

Implementation of the Uruguay Round Agreement Lecture 20. Economics of Food Markets Alan Matthews.

The EU’s CAP and the likely impact of a Doha Agreement Lecture 24. Economics of Food Markets Alan Matthews.

AGRICULTURAL POLICY REFORM IN THE WTO The Road Ahead.

Ch. 16: International Trade CIE3M1-01 M. Nicholson.

International Trade McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 37 – Comparative Advantage recap,

1 ECON Designed by Amy McGuire, B-books, Ltd. McEachern CHAPTER International Trade Macro.

Chapter 7.1 Trade Between Nations.

Copyright 2008 The McGraw-Hill Companies 23-1 Some Key Facts The Economic Basis for Trade Supply and Demand Analysis of Exports and Imports Trade Barrier.

Ch. 16: International Trade ECONOMICS 12. International Trade Canadians have become accustomed to consuming goods & services from all parts of the world.

Lecture 7 - Session 9 Political Context. Purpose of Lecture What is government’s role in the Canadian Economy? How has that role been changing and why?

JA Global Marketplace. Session One Key Terms Market: A place where trade occurs. Domestic trade: When people and businesses exchange goods or services.

International Policy Live in a global economy where: –Interdependence means that any policy decisions made by one country has a impact on the U.S. –Many.

In this chapter, look for the answers to these questions:

Chapter 6: The United States in the Global Economy

chapter The Political Economy of International Trade McGraw-Hill/Irwin Global Business Today, 5e © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.

Copyright©2004 South-Western 9 Application: International Trade.

Directorate for Food, Agriculture, and Fisheries 1 ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT ORGANISATION DE COOPÉRATION ET DE DEVELOPMENT.

Chapter 9: Nontariff Barriers to Imports. Protecting Domestic Producers against Import Competition Clearly helps those producers. Harms domestic consumers.

© 2007 Thomson South-Western. Application: International Trade What determines whether a country imports or exports a good? Who gains and who loses from.

1 Chapter 21 International Trade and Finance ©2004 Thomson/South-Western Key Concepts Key Concepts Summary Summary Practice Quiz.

# McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. International Trade and Exchange Rates 20.

International Trade Chapter 38 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent.

EPAs and Access to Markets for Agricultural Products Reneth Mano Dept of Agricultural Economics University of Zimbabwe.

Economic and Policy Analysis Directorate 1 Canada’s Agricultural Trade with FTAA Countries Organized Symposium at the Meeting of the American Agricultural.

Prosperity Through Trade North American Agri-Food Integration Session II - The European Perspective Discussant Liam McCreery, President Canadian Agri-Food.

The past, present and future of trade in dairy products: Insights into the impact of reduced protection and increased globalization on once-protected industries.

Softwood Lumber Dispute Canada vs. USA. Brief Introduction Since 1982 Canada and the USA have been involved in four softwood lumber disputes British Columbia.

Impact of the CAP Reforms on U.S. – EU Cereal Trade Sachin Chintawar, Lynn Kennedy, John V. Westra.

Test Review Chapters 4 & 5. Income can go to: Taxes Savings consumption.

Trade. Growth of trade In 1991, the US exported $365 billion and Imported $450 billion By 2004 those numbers had increased to $1.151 trillion in exports.

The Future of the Canadian Dairy Industry by Sue May Yen AGEC 630 McGill University April 4, 2006.

International Trade - Basics. Why trade? All trade is voluntary People trade because they believe that they will be better off by trading Allows for Specialization.

Economic Environment of Business International Trade. GATT and the WTO.

NAFTA North American Free Trade Agreement. NAFTA Background NAFTA stands for North America Free Trade Agreement and is a Trade Area NAFTA stands for North.

Quotas. Trade blocs This is a group of countries that engage in international trade, who agree to make trade between themselves easier and to maintain.

9 Application: International Trade. The World Price and Comparative Advantage The effects of free trade can be shown by comparing the _________ price.

Chapter Objectives Comparative advantage and the gains from trade Exports and imports Economic effects of tariffs and quotas Arguments for protectionism.

Impact of the CAP Reforms on U.S. – EU Cereal Trade

International Economics

ECON 331 INTERNATIONAL TRADE and ECONOMICS

Impacts of a Tariff on the U.S.-Canadian Softwood Lumber Trade

© 2013 Cengage Learning. All Rights Reserved

Application: International Trade

Tariffs on Chinese Imports: What is the Economic Impact?

International Trade Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.

Free Trade and Protectionism

AN IMPORT QUOTA IS IMPOSED

Presentation transcript:

Dairy Disputes in North America: A Case Study Tom Cox University of Wisconsin-Madison Danny Le Roy The University of Lethbridge Ellen Goddard University of Melbourne

2 Introduction n Analyses of three disputes n Comparison of US and Canadian dairy policy n Summary

3 Comparison of US and Canadian Dairy Policies: Similarities n Dairy versus Total Agricultural Producer Support: OECD PSE Measures. n Border Protection: –TRQ’s: Quotas, Within and Over Quota Tariffs. n Export Subsidies. n Intervention Prices/Price Supports. n Classified Pricing. –Provincial versus Federal/California MMOs. n Regionalism !!!

4 Comparison of US and Canadian Dairy Policies: Key Differences n Milk Production Quotas. –Basis for Two-Tiered Export Pricing via Class Vd/Ve. –Clever Way to “Buy Off” Pressure to Increase/Eliminate Quotas ??? But, via WTO Ruling, Not Clever Enough !!! –Difference with US Classified Pricing ??? US Pricing Not Targeted to Export Market !!! –Dynamic Growth versus Stagnant Quota Industry Implications ??? n Level of Protection and Domestic Pricing.

5 OECD Producer Subsidy Equivalents (%)

6

7

8 GATT Increased Import (Quota) Access

9 GATT Import Tariff Reductions

10 GATT Reduced Subsidy Commitments

11 US/Canada Intervention Prices

12 Dairy Disputes n US typically initiates action against Canada –Ice cream and yoghurt –Conversion of import quotas to tariffs –Canadian classified pricing

13 Ice Cream and Yoghurt n Background CUSTA Consumption trends n Action Import Control List GATT panel n Outcome Import controls converted to tariffs

14 Ice Cream and Yogurt n Evidence of the costs –Imports of Ice Cream into Canada

15 Ice Cream and Yoghurt

16 Ice Cream and Yogurt n Evidence of Costs –Imports of yoghurt into Canada

17 Ice Cream and Yoghurt

18 Tariffication n Background CUSTA, NAFTA, GATT and WTO Article XI.2.c n Action Import quotas converted to tariffs NAFTA challenge n Outcome Tariffication conformed fully with NAFTA

19 Tariffication n Evidence of costs 1$ billion (United States Dairy Export Council) Meilke, Sarker and Le Roy (1998) –Welfare gains (C$331 m) »gains to consumers and taxpayers larger than losses to producers

20 Canadian Classified Pricing n Background Levies to fund Canadian Exports Special Milk Classes Scheme n Action US, NZ claimed new CDN pricing system subsidizes exports (5d & 5e) WTO panel n Outcome Panel ruled in favour of the complainants 5d/5e in violation of WTO Agreement on Agriculture Articles 9.1(a) and 9.1(c)

21 Canadian Classified Pricing

22 Canadian Classified Pricing

23 Canadian Classified Pricing

24 Canadian Classified Pricing

25 Canadian Classified Pricing

26 Canadian Classified Pricing

27 Canadian Classified Pricing n Costs –Loss of millions in sales through  exports  domestic prices –Increase (maintain ???) US-Canada dairy trade tensions. –Increase quota management tensions Need to decrease production (enforce quotas) Or WTO legally increase exports Rock and a hard spot ??? US MMO relevance ???

28 US Classified Pricing

29 Canadian Classified Pricing

30 US Classified Pricing

31 US Classified Pricing

32 US Classified Pricing

33 US Classified Pricing

34 Canadian Classified Pricing

35 Summary n Policies similarities, differences n Case studies Yogurt & Ice Cream Tariffication Special Class Pricing n Economic Evidence Full World Dairy Sector Deregulation; US MMO Deregulation. A US-Canada dairy trade liberalization: –work in progress ….