Tasmania is Australia’s most forested state, where it has one of the highest forest proportions on Earth. The Forestry industry in Tasmania is one of the most important economic resources for the Australian state, this industry is facing market problems because of the invasion of the low price imported timber products.
To support the timber industry, the government has to take corrective actions like imposing tariffs on imported non-Tasmanian timber, or to offer subsidies for the local timber producers to support the domestic timber industry in front of the imported products.
This report studies the effects of imposing …show more content…
Forests currently cover about 4 billion hectares, about 31 % of the earth’s land surface (FAO, 2010b). As human population and economic activity have increased. The forest products industry has vigorously opened up for global trade because the prevailing business model is built on capturing comparative advantages anywhere they abound at the right cost. Many emerging countries possess valued forests, aspire for more processing industry and employment, and seek added value to their raw materials.
The Global Forest Resources Assessment 2010 – Main Report (FAO, 2010a), which was released in October 2010 show disparities between the six regions: Africa, Asia, Europe, North and Central America, Oceania & South America, this is represented in figure (1) showing the forests per region in million hectares (http://www.fao.org/forestry/trade/en/)
Figure (1) Shows Forests in million hectares per region
2- GOVERNMENT POLICY a- TARIFFS
A tax imposed on imported goods and services. Tariffs are used to control the Quantity of imported products; the tariffs increase the price of