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Finnish Salmon Trout - Discriminated in the European Market

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Author Info

  • Virtanen, Jarno
  • Setala, Jari
  • Saarni, Kaija
  • Honkanen, Asmo
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    Abstract

    The evolution of salmon trout farming in Finland provides an interesting example of how different trade policies can affect on the conditions of a small section of a primary industry in the global market. During the protectionist times in the 1980s, Finland became the world-leading producer of salmon trout (Oncorhynchus mykiss) (Saarni et al. 2003). During the global expansion of salmon aquaculture production and trade liberation, the Finnish fish farming industry faced fierce international competition. After Finland joined the European Union in 1995, the food industry was deregulated, and imported Norwegian salmon began to displace domestic salmon trout. In 1997, the import of salmon to the EU was restricted by the Salmon Agreement between the EU and Norway. At first, the minimum import price set for Norwegian salmon raised the import prices of salmon trout too, but it ultimately proved to be an even more serious problem for Finnish producers than that posed by free trade. After the world market price of salmonids dropped sharply in 2001, very inexpensive Norwegian salmon trout flooded the Finnish market, because salmon trout trade was not regulated in the agreement. The circumvention of the agreement led to an anti-dumping duty by the EU Commission in 2004.

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    File URL: http://purl.umn.edu/28288
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    Bibliographic Info

    Article provided by Marine Resources Foundation in its journal Marine Resource Economics.

    Volume (Year): 20 (2005)
    Issue (Month): 1 ()
    Pages:

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    Handle: RePEc:ags:mareec:28288

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    Web page: http://www.uri.edu/cels/enre/mre/mre.htm

    Related research

    Keywords: international trade; minimum price; salmon agreement; salmon trout; trade policy; Resource /Energy Economics and Policy; F14;

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    1. de Melo, Jaime & Tarr, David, 1996. "VERs under imperfect competition and foreign direct investment: A case study of the US-Japan auto VER," Japan and the World Economy, Elsevier, vol. 8(1), pages 11-33, March.
    2. Richard Harris, 1984. "Why Voluntary Export Restraints are 'Voluntary'," Working Papers 559, Queen's University, Department of Economics.
    3. Henry W. Kinnucan & Øystein Myrland, 2002. "The Relative Impact of the Norway-EU Salmon Agreement: a Mid-term Assessment," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(2), pages 195-219.
    4. Krishna, Kala, 1989. "Trade restrictions as facilitating practices," Journal of International Economics, Elsevier, vol. 26(3-4), pages 251-270, May.
    5. Flam, Harry, 1994. "EC members fighting about surplus VERs, FDI and Japanese cars," Journal of International Economics, Elsevier, vol. 36(1-2), pages 117-131, February.
    6. Frank Asche & Atle G. Guttormsen & Tom Sebulonsen & Elin H. Sissener, 2005. "Competition between farmed and wild salmon: the Japanese salmon market," Agricultural Economics, International Association of Agricultural Economists, vol. 33(3), pages 333-340, November.
    7. Guillotreau, Patrice, 2004. "How does the European seafood industry stand after the revolution of salmon farming: An economic analysis of fish prices," Marine Policy, Elsevier, vol. 28(3), pages 227-233, May.
    8. Robert W. Crandall, 1987. "The Effects of U.S. Trade Protection for Autos and Steel," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(1), pages 271-288.
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