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Extending General Equilibrium to the Tariff Line: U.S. Dairy in the Doha Development Agenda

Jason H. Grant, Thomas Hertel and Thomas F. Rutherford

No 331564, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: We extend general equilibrium (GE) analysis to the “tariff line” by embedding a detailed, partial equilibrium (PE) model of the global dairy sector into a global GE framework. A mixed-complementarity formulation PE model is used to represent bilateral and multilateral dairy trade policy within the broader GE framework with US import protection as our focal point. The impact of liberalizing US dairy imports via bilateral and multilateral tariff-rate quota expansions, out-of-quota tariff cuts, and simultaneous liberalization scenarios is evaluated. We find that the path of liberalization is quite different, depending on the reform approach undertaken. The results have important policy implications for agricultural negotiations in the Doha Development Agenda.

Keywords: Research Methods/Statistical Methods; International Relations/Trade (search for similar items in EconPapers)
Pages: 40
Date: 2006
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https://ageconsearch.umn.edu/record/331564/files/2745.pdf (application/pdf)

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Working Paper: Extending General Equilibrium to the Tariff Line: U.S. Dairy in the Doha Development Agenda (2006) Downloads
Working Paper: Extending General Equilibrium to the Tariff Line: U.S. Dairy in the DOHA Development Agenda (2006) Downloads
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