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GTAP Resource #6268

"Assessing the impact of dual production systems on Agri-food trade and trade policy"
by Humphreys, Lee and Mike Bourne

Agri-food exporters, and exporters in general, often have to meet different standards depending on the target market (domestic or export). Sometimes they will employ 'dual production systems', with separate production systems depending on whether the product is for export or domestic consumption. This has important implications for trade policy, as it may support or limit an industry's response to changing trade costs. The analysis here will focus on meat treated with growth promoters. In 1981, the EU banned the use of growth hormones in farm animals so any country wishing to export to the EU is required to meet these restrictions. More recently, US pork producers stopped using Ractopamine (a growth promoting feed additive) because exporting to China, where it is banned, became so attractive. These are just two examples and similar dual production systems could become more widespread as consumer choices increasingly reflect a desire for certain production methods. Given that CGE modelling is such a widely used tool in trade policy analysis, it is useful to be able to include such dual production systems into analysis. With the introduction of multiproduction, i.e. where one industry can produce multiple commodities, the GTAP model version 7 can possibly incorporate these 'dual production systems' into trade policy analysis. This paper explores the data requirements required, and the possibilities for extra insights offered by this capability.

Resource Details (Export Citation) GTAP Keywords
Category: 2021 Conference Paper
Status: Not published
By/In: Presented during the 24th Annual Conference on Global Economic Analysis (Virtual Conference)
Date: 2020
Created: Humphreys, L. (4/14/2021)
Updated: Humphreys, L. (9/8/2021)
Visits: 595
- Baseline development
- Agricultural policies
- Other data bases and data issues
- The GTAP Data Base and extensions

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