ABSTRACT
This chapter utilizes the Global Trade Analysis Project (GTAP) in the analysis of the trade policy issues surrounding the New Zealand forestry industry. The GTAP lowers the costs of general equilibrium modelling by providing a standardised framework and database, which are available publicly. The GTAP model traces imports to specific agents in the domestic economy, resulting in separate payments from households, the government and firms. The chapter reconsiders the issue of processing incentives within the global model – exploring the degree of similarity between the results obtained and those obtained earlier, and whether such incentives can impact on other countries. It then considers the impacts of liberalisation of the wood products industry by two of New Zealand's most significant markets in the region (Japan and Korea). The chapter discusses the implications for the forestry and wood processing industries of the broader Asia Pacific Economic Cooperation (APEC) liberalisation agenda.
