An Assessment of the 1988 Japanese Beef Market Access Agreement on Beef and Feed-Grain Markets

The impact of the 1988 Beef Market Access Agreement (BMAA) on beef and feed-grain markets in the United States, Australia, and Japan is analyzed. The method used is a nonspatial, three-commodity, three-country equilibrium model. The results indicate that the BMAA will increase U.S. beef exports, but will not significantly alter U.S. feed-grain prices. The U.S. market shares will increase as higher export demand causes Australian beef prices to rise. Australian beef exports to the United States should fall as Australia builds its breeding herd.