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Abstract

This study utilizes a source-based demand systems model to estimate demand for imported poultry products in the Caribbean Community (CARICOM), and to evaluate the impact that modifications of the Common External Tariff (CET) would have on the demand for poultry products from the United States, Brazil, Canada and the European Union. Own price elasticities suggest that CARICOM’s poultry import demand is highly price responsive in both the short run and the long run, and that any significant increases in imported poultry prices could be expected to trigger greater than proportional decreases in quantities demanded from all source countries except Brazil. Results also suggest that if the CET were removed, all source countries would be able to expand poultry product exports into CARICOM. Canada is the only country that would decrease exports to CARICOM in the long run if the CET were removed. Poultry exports to the region from most source countries would contract with a doubling of the CET to 80%, in both the short run and the long run.

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