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Abstract

The GATT/Uruguay Round trade negotiations have resulted in a multilateral relaxation of beef trade restrictions. A linear elasticity model of the U.S. beef industry is developed using log differentials equations. Beef consumption, production, and trade are disaggregated into appropriate ground and table cut components. The model predicts that GATT/Uruguay Round will cause asymmetric effects on ground and table cut beef consumers. In general, fed cattle and cow/calf producers will benefit from trade liberalization because of increases in fed and feeder cattle prices. However, nonfed cattle price will decrease.

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