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Tariffs and Transport Costs on U.S. Wheat Exports
Won W. Koo
North Central Journal of Agricultural Economics
Vol. 6, No. 2 (Jul., 1984), pp. 99-107
Stable URL: http://www.jstor.org/stable/1349255
Page Count: 9
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This study reveals that under a free market system, the West Coast ports have the highest price for winter and spring wheat and the Great Lakes have the lowest prices. Price differences between these two ports are about 70 cents per bushel. Wheat prices at the Gulf ports are approximately 35 cents lower than at the West Coast. Durum wheat price is higher at the Great Lakes and Gulf ports than at the West Coast. The geographic price differences depend upon trade restrictions and volatilities in transport costs. Tariffs imposed by the EEC is absorbed more by consumers in the importing countries than by producers in the U.S. In contrast to tariffs, changes in ocean freight rate influence wheat price at U.S. ports more than in importing countries because freight rate changes are absorbed more by producers in U.S. Welfare losses due to tariffs and increases in transport costs are much larger in the U.S. than in the EEC and/or other importing regions.
North Central Journal of Agricultural Economics © 1984 Agricultural & Applied Economics Association