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Article
An Economic Analysis of the Impact of Changes in the EC's Milk Quota
GATT Research Papers
  • David Hennessy, Washington State University
  • Dermot J. Hayes, Iowa State University
Publication Date
2-1-1994
Series Number
94-GATT 3
Abstract

Worried by rapidly increasing milk and beef policy costs, but constrained by political considerations, the European Community (EC) Council of Agriculture ministers introduced a milk quota regime effective April 1984. The extent to which a quota regime reduces economic efficiency and influences world trade depends upon how it is implemented. The method of implementation is also a major determinant of the policy's effect on world trade. Regulations favorable to production in grass-based dairy regions will, other things being equal, reduce world cereal demand. Regulations favorable to butterfat production may distort world, animal, and vegetable fat markets.

Copyright Owner
Iowa State University
Citation Information
David Hennessy and Dermot J. Hayes. "An Economic Analysis of the Impact of Changes in the EC's Milk Quota" (1994)
Available at: http://works.bepress.com/dermot_hayes/109/