Possible effects of the recent Australian ban on prawn imports

Abstract

Australia banned imports of uncooked prawns from Asia in early 2017 after an outbreak of the deadly white spot disease in southern Queensland. The ban expired after 6 months, and it remains unclear what the source of the epidemic was, or the mechanism through which it may have entered the country. The Queensland State Government offered financial assistance to selected producers, although as a group, producers benefit from the higher prices resulting from the ban. In fact, the major cost of the ban is borne by domestic consumers and foreign producers. The major impact is a transfer from Australian consumers to Australian producers. These transfers are quantified in this analysis, as are the impacts on developing country exporters. Show more