The purpose of this paper is to contrast an Armington-based model with the traditional Heckscher-Ohlin framework familiar to textbook trade theory. The models concentrate on different aspects of the gains from trade, and both have deficiencies. The paper argues that by combining both frameworks,...

This inquiry report was released on 27 May 2010. The Australian anti-dumping system, which is based on agreed WTO rules and procedures, benefits a small number of import competing firms, but imposes greater costs on the rest of the economy. <p>However, this net economic cost is likely to be very...</p>

While Australian pigmeat producers are feeling pressure from substantially higher feed costs, in the Productivity Commission’s assessment these circumstances do not meet the WTO criteria for safeguards action. The WTO Safeguards Agreement requires evidence that significant increases in imports...

The Commission’s modelling indicates that there would be economy–wide benefits from further reductions in assistance to the automotive sector, particularly for tariffs. It also suggests that the benefits would be larger under the current assistance reduction program than options entailing...