Is It Time to Revisit Agricultural Tariffs When Enhanced Human Health Is at Stake?

Abstract

Agricultural tariffs were typically put in place in the distant past and have remained largely unchanged. Tariffs provide benefits to agricultural producers at the expense of consumers and policy makers must make implicit tradeoffs when they are imposed. Agriculture and food markets are, however, dynamic and changing. In the period since agricultural tariffs were set, many foods have been altered to, or discovered to, provide human health benefits beyond their nutritional value – health foods or functional foods. Hence, they are more valuable to consumers with the result that the cost to consumers of existing agricultural tariffs has increased. As a result, policy makers may wish to revisit some agricultural tariffs. A case study from China’s vegetable oil market is provided to illustrate the effect foods with human health benefits arising in markets with existing agricultural tariffs can have. agricultural tariffs, benefits to human health, consumers, producers, tradeoffs