The Impact of Trade Policy in Canadian Dairy
Abstract
Canadian dairy producers have been protected by supply management and import-restricting border controls for over forty years. As a result of the recent Trans-Pacific Partnership (TPP) negotiations, Canada has agreed to increase foreign access to its dairy market by an estimated 3.25 percent of its yearly milk production over the course of 5 years. As compensation, it is proposed that the Canadian government will pay domestic dairy producers approximately $4.3 billion over 15 years. This study estimates the welfare effects of the increased market access negotiated through the TPP, compares these effects to a free-trade scenario, and evaluates the proposed compensation package. It is estimated that the TPP generates approximately one third of the consumer surplus gains and producer surplus losses that would result from completely free-trade, and that the compensation package is justifiable.
Description
Keywords
Economics, Economics--Agricultural, Political Science, Public Administration, Agriculture
Citation
Rasmussen, P. (2016). The Impact of Trade Policy in Canadian Dairy (Master's thesis, University of Calgary, Calgary, Canada). Retrieved from https://prism.ucalgary.ca. doi:10.11575/PRISM/28195