The economic impacts and political repercussions of imposing tariffs on poultry imports in Saudi Arabia

Abstract This study employs a modified Computable General Equilibrium (CGE) model to investigate the economic impacts of varying tariff rates on poultry imports in Saudi Arabia. The analysis integrates actual production, export, and import data alongside theoretical assumptions to assess the implica...

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Main Authors: Yosef Alamri, Atheer Al-Muhaini
Format: Article
Language:English
Published: Springer 2025-07-01
Series:Journal of the Saudi Society of Agricultural Sciences
Subjects:
Online Access:https://doi.org/10.1007/s44447-025-00024-9
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author Yosef Alamri
Atheer Al-Muhaini
author_facet Yosef Alamri
Atheer Al-Muhaini
author_sort Yosef Alamri
collection DOAJ
description Abstract This study employs a modified Computable General Equilibrium (CGE) model to investigate the economic impacts of varying tariff rates on poultry imports in Saudi Arabia. The analysis integrates actual production, export, and import data alongside theoretical assumptions to assess the implications of increased tariffs from 20 to 35% on domestic poultry production and overall economic welfare. Contrary to the protective intent of tariffs, the findings indicate that higher tariffs lead to increased import prices but surprisingly result in a decline in domestic production. Specifically, production decreased by 17.5% under the highest tariff rate, accompanied by significant economic welfare losses amounting to $1.85 billion, primarily due to reduced consumer surplus and increased market inefficiencies. These results highlight the complexities and unintended consequences of tariff imposition in an import-dependent economy and suggest that alternative strategies such as subsidies, technological investments, and regional trade agreements may offer more sustainable benefits. The study underscores the need for a nuanced approach to trade policy, emphasizing the importance of comprehensive data analysis and dynamic economic modeling to inform policy decisions.
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institution Kabale University
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language English
publishDate 2025-07-01
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series Journal of the Saudi Society of Agricultural Sciences
spelling doaj-art-bf10f9c32dfa449c968074efef700c2f2025-08-20T04:01:26ZengSpringerJournal of the Saudi Society of Agricultural Sciences1658-077X2025-07-012441610.1007/s44447-025-00024-9The economic impacts and political repercussions of imposing tariffs on poultry imports in Saudi ArabiaYosef Alamri0Atheer Al-Muhaini1Department of Agricultural Economics, College of Food and Agricultural Sciences, King Saud UniversityDepartment of Agricultural Economics, College of Food and Agricultural Sciences, King Saud UniversityAbstract This study employs a modified Computable General Equilibrium (CGE) model to investigate the economic impacts of varying tariff rates on poultry imports in Saudi Arabia. The analysis integrates actual production, export, and import data alongside theoretical assumptions to assess the implications of increased tariffs from 20 to 35% on domestic poultry production and overall economic welfare. Contrary to the protective intent of tariffs, the findings indicate that higher tariffs lead to increased import prices but surprisingly result in a decline in domestic production. Specifically, production decreased by 17.5% under the highest tariff rate, accompanied by significant economic welfare losses amounting to $1.85 billion, primarily due to reduced consumer surplus and increased market inefficiencies. These results highlight the complexities and unintended consequences of tariff imposition in an import-dependent economy and suggest that alternative strategies such as subsidies, technological investments, and regional trade agreements may offer more sustainable benefits. The study underscores the need for a nuanced approach to trade policy, emphasizing the importance of comprehensive data analysis and dynamic economic modeling to inform policy decisions.https://doi.org/10.1007/s44447-025-00024-9Tariff ImpactComputable General Equilibrium (CGE) ModelPoultry MarketEconomic WelfareAgricultural Trade PolicyImport Dependence
spellingShingle Yosef Alamri
Atheer Al-Muhaini
The economic impacts and political repercussions of imposing tariffs on poultry imports in Saudi Arabia
Journal of the Saudi Society of Agricultural Sciences
Tariff Impact
Computable General Equilibrium (CGE) Model
Poultry Market
Economic Welfare
Agricultural Trade Policy
Import Dependence
title The economic impacts and political repercussions of imposing tariffs on poultry imports in Saudi Arabia
title_full The economic impacts and political repercussions of imposing tariffs on poultry imports in Saudi Arabia
title_fullStr The economic impacts and political repercussions of imposing tariffs on poultry imports in Saudi Arabia
title_full_unstemmed The economic impacts and political repercussions of imposing tariffs on poultry imports in Saudi Arabia
title_short The economic impacts and political repercussions of imposing tariffs on poultry imports in Saudi Arabia
title_sort economic impacts and political repercussions of imposing tariffs on poultry imports in saudi arabia
topic Tariff Impact
Computable General Equilibrium (CGE) Model
Poultry Market
Economic Welfare
Agricultural Trade Policy
Import Dependence
url https://doi.org/10.1007/s44447-025-00024-9
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