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Impacts On U.S. Prices Of Reducing Orange Juice Tariffs In Major World Markets

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Author Info

  • Brown, Mark G.
  • Spreen, Thomas H.
  • Lee, Jonq-Ying

Abstract

A demand model is developed to examine the impacts on orange juice prices resulting from elimination or reduction of the tariffs on orange juice imposed by the United States, European Union, and Japan. An empirical analysis suggests that elimination of the U.S. tariff by itself would decrease the U.S. orange juice price by about $0.22 per gallon, while simultaneous elimination of the U.S., European, and Japanese tariffs would decrease the U.S. price by about $0.13 per gallon. Alternatively, reducing these tariffs according to the Swiss 25 formula would decrease the U.S. price by an estimated $0.09 per gallon. The U.S. produces about 1.4 billion gallons of orange juice annually and each penny reduction in the price impact increases U.S. orange juice FOB revenue by $14 million.

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File URL: http://purl.umn.edu/27236
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Bibliographic Info

Article provided by Food Distribution Research Society in its journal Journal of Food Distribution Research.

Volume (Year): 35 (2004)
Issue (Month): 02 (July)
Pages:

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Handle: RePEc:ags:jlofdr:27236

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Web page: http://fdrs.ag.utk.edu/
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Keywords: Demand and Price Analysis;

References

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  1. Mark G. Brown & Jonq-Ying Lee & Thomas H. Spreen, 1996. "The impact of generic advertising and the free rider problem: A look at the US orange juice market and imports," Agribusiness, John Wiley & Sons, Ltd., vol. 12(4), pages 309-316.
  2. Spreen, Thomas H. & Brewster, Charlene & Brown, Mark G., 2003. "The Free Trade Area of the Americas and the Market for Processed Orange Products," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 35(01), April.
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Citations

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Cited by:
  1. Brown, Mark G., 2006. "Long-Run Impact of Orange-Juice Generic Advertising," Research Papers 2006 36835, Florida Department of Citrus.
  2. Rickard, Bradley J. & Okrent, Abigail M. & Alston, Julian M., 2011. "How have agricultural policies influenced caloric consumption in the United States?," Working Papers 126543, Cornell University, Department of Applied Economics and Management.
  3. Luckstead, Jeff & Devadoss, Stephen & Mittelhammer, Ron C., 2013. "Strategic Trade Policies in the U.S. Orange Juice Market: Competition between Florida and São Paulo," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149668, Agricultural and Applied Economics Association.

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