Contractor and Cooperator Reports No. (CCR-21) 21 pp

August 2006

Impacts of Trade Liberalization on the U.S. Dairy Market

The economic effects of trade liberalization in world dairy markets are assessed using a world dairy model developed at the University of Wisconsin-Madison. The effects on U.S. farm milk prices and production, producer and consumer surpluses, and U.S. Government revenues and program expenditures are determined. The empirical analysis suggests generally modest price and production impacts on U.S. milk producers when multilateral trade liberalization is assumed.

This study was conducted by the University of Wisconsin-Madison under a cooperative research contract with USDA’s Economic Research Service (ERS) (ERS project representative: Don P. Blayney). The views expressed are those of the authors and not necessarily those of ERS or USDA.

Keywords: Dairy, milk and dairy products, international, trade policy, multilateral trade liberalization

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