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Abstract
The quarantine policy decision-making process in Australia is subject to the principles of the World
Trade Organisation’s SPS Agreement. It is primarily based on the risks and associated economic
costs accruing to producers in the event of disease entry. The costs of a quarantine measure in
terms of forgone trade benefits are not considered. The impact associated with this asymmetric
approach is identified by demonstrating the gains to consumers which may arise through
liberalised markets using a case study of the Australian apple industry. A partial equilibrium
analysis is used to show the potential impacts of apple market liberalisation. The economic impact
of liberalisation of the Australian apple market by permitting apple imports can be expected to yield
gains to consumers which are greater than the economic costs imposed on producers.