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The Free Trade Area of the Americas and the Market for Processed Orange Products

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Author Info

  • Spreen, Thomas H.
  • Brewster, Charlene
  • Brown, Mark G.

Abstract

The proposed Free Trade Area of the Americas would join the world’s two largest processed orange producing regions: Brazil and the United States. Because the United States currently imposes a sizeable tariff on imported processed orange products, there is concern by U.S. orange growers over possible adverse effects resulting from tariff elimination. A model of the world processed orange market is developed as a spatial equilibrium model with implicit supply functions based on the dynamic behavior of orange production. The model is used to estimate the impact of U.S. tariff elimination on U.S. production, grower and processor prices, and imports. The results suggest a sizeable price impact on U.S. producers if the tariff is eliminated.

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File URL: http://purl.umn.edu/37837
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Bibliographic Info

Article provided by Southern Agricultural Economics Association in its journal Journal of Agricultural and Applied Economics.

Volume (Year): 35 (2003)
Issue (Month): 01 (April)
Pages:

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Handle: RePEc:ags:joaaec:37837

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Web page: http://www.saea.org/jaae/jaae.htm
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Related research

Keywords: orange juice; spatial equilibrium; tariffs; trade; C61; F13;

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Cited by:
  1. Stephen Devadoss & Angel Aguiar, 2006. "Effects of global trade liberalization on softwood lumber markets," Applied Economics, Taylor & Francis Journals, vol. 38(20), pages 2351-2360.
  2. Spreen, Thomas H. & Baldwin, Jean-Paul, 2013. "The Impact of Huanglongbing (HLB) on Citrus Tree Planting in Florida," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142706, Southern Agricultural Economics Association.
  3. Spreen, Thomas H. & Brewster, Charlene & Brown, Mark A., 2002. "The Impact Of Elimination Of The U.S. Orange Juice Tariff On The Market For Processed Orange Products," Policy Briefs 15669, University of Florida, International Agricultural Trade and Policy Center.
  4. 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(02), July.
  5. 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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