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The objective of this paper is to provide the U.S. dairy industry with empirical estimates of Hong Kong's derived demand for imported cheese from the U.S. These estimates were used to project the effects of the European Union (E.U.) subsidy reductions on the U.S. share of Hong Kong cheese imports. Hong Kong cheese imports from the U.S. were projected to increase by 16.96% if subsidy reductions continue at the same pace as the 1994 GATT agreement and 33.92% if reductions were twice the pace.


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