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An Economic Method for Empirically Assessing the ‘Appropriate Level of Protection
Conference proceeding

An Economic Method for Empirically Assessing the ‘Appropriate Level of Protection

David Cook and Rob Fraser
173978
Australian Agricultural and Resource Economics Society (AARES) 2002 Conference (46th) (Canberra, ACT, Australia, 13/02/2002–15/02/2002)
2002

Abstract

International Relations/Trade Research Methods/ Statistical Methods
Australia’s membership of the World Trade Organisation has generated a need for analytical techniques demonstrating that the behaviour of its internal markets and regulatory authorities for food and food-related products conform with the provisions of the Agreement on Sanitary and Phytosanitary Measures (SPS Agreement). However, since quarantine has long been considered a scientific issue, it is as yet unclear what role economic models have to play in this process. This article shows how consumer welfare effects can be integrated with the traditional producer welfare effects in quantitative analytical models using the examples of the mango and tomato industries in Western Australia, both of which enjoy quarantine protection from interstate growers.

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