Tariffs on U.S. Imports of Dairy Products: A Product Component Analysis

A methodology for dairy product component tariff and price calculation is developed and applied to various products. Since the majority of dairy products are imported for their ingredients, component tariffs need to be considered in evaluating the protection provided by the tariff structure rather than tariffs on end products as listed in the HTS schedule. The results of the Uruguay Round tariffication of dairy products for the United States indicate that implied milk fat and protein AVE's vary substantially among and within product groups. Different tariffs applied to finished products may have unintended impacts on economic incentives due to their impact on the relative prices of imported milk components.International Relations/Trade,

Implicit Tariffs on Imported Dairy Product Components in the United States

The majority of the dairy products imported by the United States are intermediate products used in food processing. As such, they are demanded for their components such as milk fat and protein. The implications of the U.S. tariff structure for import demand must be viewed in terms of the tariff's effects upon the relative prices of imported milk components. In this article we examine the implications of the current tariff structure and proposed changes under the Doha Round of international trade negotiations at the World Trade Organization. We show that implicit ad valorem equivalent tariffs (AVEs) on components vary substantially under the current tariff schedule. Proposed changes under the Doha Round would lead to not only a reduction in the level of implied tariffs on components, but also a reduction in dispersion. This would help to reduce the possibility of distortions due to significant differences in component prices across intermediate dairy products.dairy, Doha Round, milk components, tariff structure, United States, International Relations/Trade,

Implicit Tariffs on Imported Dairy Product Components in the United States: Technical Annex

This document is the technical annex to the full paper "Implicit Tariffs on Imported Dairy Product Components in the United States" which is available separately

Tariffs on U.S. Imports of Dairy Products: A Product Component Analysis

A methodology for dairy product component tariff and price calculation is developed and applied to various products. Since the majority of dairy products are imported for their ingredients, component tariffs need to be considered in evaluating the protection provided by the tariff structure rather than tariffs on end products as listed in the HTS schedule. The results of the Uruguay Round tariffication of dairy products for the United States indicate that implied milk fat and protein AVE's vary substantially among and within product groups. Different tariffs applied to finished products may have unintended impacts on economic incentives due to their impact on the relative prices of imported milk components

Implicit Tariffs on Imported Dairy Product Components in the United States

The majority of the dairy products imported by the United States are intermediate products used in food processing. As such, they are demanded for their components such as milk fat and protein. The implications of the U.S. tariff structure for import demand must be viewed in terms of the tariff's effects upon the relative prices of imported milk components. In this article we examine the implications of the current tariff structure and proposed changes under the Doha Round of international trade negotiations at the World Trade Organization. We show that implicit ad valorem equivalent tariffs (AVEs) on components vary substantially under the current tariff schedule. Proposed changes under the Doha Round would lead to not only a reduction in the level of implied tariffs on components, but also a reduction in dispersion. This would help to reduce the possibility of distortions due to significant differences in component prices across intermediate dairy products

Implicit Tariffs on Imported Dairy Product Components in the United States: Technical Annex

This document is the technical annex to the full paper "Implicit Tariffs on Imported Dairy Product Components in the United States" which is available separately.International Relations/Trade,