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

Author

Listed:
  • 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.

Suggested Citation

  • Brown, Mark G. & Spreen, Thomas H. & Lee, Jonq-Ying, 2004. "Impacts On U.S. Prices Of Reducing Orange Juice Tariffs In Major World Markets," Journal of Food Distribution Research, Food Distribution Research Society, vol. 35(2), pages 1-8, July.
    • Handle: RePEc:ags:jlofdr:27236
    DOI: 10.22004/ag.econ.27236
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    File URL: https://ageconsearch.umn.edu/record/27236/files/35020026.pdf
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    References listed on IDEAS

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    1. 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(1), pages 1-20, April.
    2. 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.
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    Citations

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    Cited by:

    1. Brown, Mark G., 2009. "Allocation of Advertising and Research Dollars In the Florida Orange-Juice Industry," Research papers 104329, Florida Department of Citrus.
    2. Bradley J. Rickard & Abigail M. Okrent & Julian M. Alston, 2013. "How Have Agricultural Policies Influenced Caloric Consumption In The United States?," Health Economics, John Wiley & Sons, Ltd., vol. 22(3), pages 316-339, March.
    3. Luckstead, Jeff & Devadoss, Stephen & Mittelhammer, Ron, 2015. "Imperfect Competition between Florida and Sao Paulo (Brazil) Orange Juice Producers in the U.S. and European Markets," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(1), pages 1-15.
    4. 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.
    5. Dhamodharan, Mahalingam & Devadoss, Stephen & Luckstead, Jeff, 2016. "Imperfect Competition, Trade Policies, and Technological Changes in the Orange Juice Market," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(2), May.

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    Keywords

    Demand and Price Analysis;

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