ENDOGENOUS POLICY AND SUPPLY MANAGEMENT IN A POST-GATT WORLD

Previous studies of the effects of agricultural trade policy reform ha ve treated internal policies for supply-managed commodities as exogeno us. In our model, however, quotas on imports are chosen jointly with d omestic production quotas to balance total welfare and its distributio n among producers, consumers, importers and taxpayers. GATT and NAFTA regulations impose minimum import access requirements on supply-manage d commodities. We show the unintended consequences of these regulation s, which arise from the induced adjustment of domestic quota policies, using Canadian supply management as an example.