2001, Volume 9, Paper 3

ISSN: 1883-5675

An Economic Evaluation of Interstate Quarantine Protocols for Mangoes Entering Western Australia

David Cook – University of Western Australia

Abstract

Quarantine trade restrictions enforced on agricultural commodities are both a safety measure and a form of subsidy to local producers. With appropriate strategies in place the risk posed to domestic production systems from exotic pests and diseases is reduced. This often means importers of agricultural commodities are effectively taxed, with negative effects on consumer welfare. Hence, analysis of quarantine policy decisions involves a comparison of expected production gains against social welfare loss. Given the large variety of agricultural industries and the virtually endless list of exotic pests posing a risk to domestic industries, there is a continuum of cases of this nature. In some instances the effects of quarantine policies will be felt mainly by producers, while in others it may be consumers, or a blend of the two. In the case of the mango industry in WA, both producers and consumers are affected. A quantitative assessment of the benefits and costs of Agriculture Western Australia’s import clearance activities governing mango importation is provided here in which the break-even pest damage avoided through quarantine is emphasised, rather than the expected level of damage should pests enter.

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