Trade Liberalisation Scenarios for Wool Under an Australia-China Free Trade Agreement

Yinhua Hua Mai () and Philip David Adams ()

Centre of Policy Studies/IMPACT Centre Working Papers from Monash University, Centre of Policy Studies/IMPACT Centre

Abstract: This study analyses the effects of removing Tariff Rate Quota (TRQ) and other barriers on wool imports into China using the Monash Multi-Country (MMC) model, a dynamic Computable General Equilibrium Model of Australia, China and the Rest of the World. The study suggests that TRQ on greasy wool represents the most restrictive barriers to wool imports into China, if the current level of quota holds. The elimination of TRQ on greasy wool is found to boost Chinese imports of wool from Australia and Chinese exports of textiles and clothing products to the Rest of the World significantly. The Australian wool and Chinese textiles and clothing industries stand to gain from the elimination of TRQ on greasy wool. Both countries also gain in terms of a slightly higher growth in real GDP and real GNP due to the elimination of TRQ on wool imports into China.

Keywords: Wool; China; FTA (search for similar items in EconPapers)
JEL-codes: D58 F15 Q17 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cna, nep-int and nep-tra
Date: Written 2005-10
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