PRRS AND THE NORTH AMERICAN SWINE TRADE: A TRADE BARRIER ANALYSIS
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The partial equilibrium model links the infection risk from imported products to a premium, which compensates the importing country for the risk incurred by allowing imports from infected countries. The model is applied to the Porcine Reproductive and Respiratory Syndrome (PRRS) and Mexican live swine imports. The premium is sensitive to the expected loss from a PRRS outbreak and to the magnitude of the risk. As the risk or severity of PRRS rises, so does the level of the barrier. If swine imports are categorized and appropriate restrictions applied, an acceptable level of disease protection can be achieved while improving national welfare.