Tariff Escalation and Invasive Species Risk

Anh Tu, John Beghin () and Estelle Gozlan ()

Food and Agricultural Policy Research Institute (FAPRI) Publications from Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University

Abstract: We investigate the interface between trade and invasive species (IS) risk, focusing on the existing tariff escalation in agro-forestry product markets and its implication for IS risk. Tariff escalation in processed agro-forestry products exacerbates the risk of IS by biasing trade flows toward increased trade of primary commodity flows and against processed-product trade. We show that reducing tariff escalation by lowering the tariff on processed goods increases allocative efficiency and reduces the IS externality, a win-win situation. We also identify policy menus for trade reforms involving tariffs on both raw input and processed goods, leading to win-win situations.

Keywords: agro-forestry products; exotic pest; international trade; invasive species; tariff escalation; trade flows. (search for similar items in EconPapers)
Date: 2005-10
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Related works:
Working Paper: Tariff Escalation and Invasive Species Risk (2005)
Working Paper: Tariff Escalation and Invasive Species Risk (2005)
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Persistent link: http://EconPapers.repec.org/RePEc:ias:fpaper:05-wp407

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