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Journal of Economic Integration 2005 March;20(1) :158-184.
Economic Evaluation of Non-Tariff Trade Barriers: Sanitary Regulations and the Broiler Market in the Western Hemisphere

D. L. SalinW. F. HahnA. Somwaru 

U.S. Department of Agriculture(USDA)-Economic Research Service(ERS)
Copyright ©2005 Journal of Economic Integration
Exporting countries are concerned that sanitary standards might shield domestic industry from foreign competition. This study analyzes economic effects of changes in Western Hemisphere sanitary requirements on broiler trade in the Americas. A mathematical programming model detects that if Brazil and Mexico are allowed to export fresh, chilled, and frozen poultry meat to the United States and Canada then the United States becomes an importer of value added broiler products and looses market share to Brazil in world broiler market. Due to geographic location, Mexico expands exports to the United States.

JEL Classification: C61, D21, F12, F02, Q18

Keywords: Mathematical programming | Firm behavior | Imperfect substitution | Endogenous value-added | Differentiated products | United States | Canada | Mexico | Brazil | Sanitary and phytosanitary standards (SPS) | World Trade Organization (WTO) | Broiler trade | Nontariff trade barrier
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