IDEAS home Printed from https://ideas.repec.org/a/eee/jfpoli/v68y2017icp233-247.html
   My bibliography  Save this article

Reducing transatlantic barriers on U.S.-EU agri-food trade: What are the possible gains?

Author

Listed:
  • Arita, Shawn
  • Beckman, Jayson
  • Mitchell, Lorraine

Abstract

In recent years, the EU and the U.S. have engaged in discussions to lower trade and investment barriers and strengthen transatlantic integration. For food and agricultural trade, non-tariff measures (NTMs) such as sanitary and phytosanitary measures (SPS) stand out as significant barriers. This study combines sector-level econometric modeling with an agriculture-focused computable generable equilibrium (CGE) model to simulate various transatlantic liberalization scenarios on U.S.-EU agri-food trade. The simulations quantify the effect from tariff removal and addressing NTMs. The magnitude of the gains depend upon the level of tariff liberalization, the depth of integration, and possible consumer demand changes.

Suggested Citation

  • Arita, Shawn & Beckman, Jayson & Mitchell, Lorraine, 2017. "Reducing transatlantic barriers on U.S.-EU agri-food trade: What are the possible gains?," Food Policy, Elsevier, vol. 68(C), pages 233-247.
    • Handle: RePEc:eee:jfpoli:v:68:y:2017:i:c:p:233-247
    DOI: 10.1016/j.foodpol.2016.12.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306919216301658
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.foodpol.2016.12.006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Henrik Horn & Petros C. Mavroidis & André Sapir, 2010. "Beyond the WTO? An Anatomy of EU and US Preferential Trade Agreements," The World Economy, Wiley Blackwell, vol. 33(11), pages 1565-1588, November.
    2. Hertel, Thomas & Hummels, David & Ivanic, Maros & Keeney, Roman, 2007. "How confident can we be of CGE-based assessments of Free Trade Agreements?," Economic Modelling, Elsevier, vol. 24(4), pages 611-635, July.
    3. Jochen Hartl & Roland Herrmann, 2009. "Do they always say no? German consumers and second‐generation GM foods," Agricultural Economics, International Association of Agricultural Economists, vol. 40(5), pages 551-560, September.
    4. Lionel Fontagné & Julien Gourdon & Sébastien Jean, 2013. "Transatlantic Trade: Whither Partnership, Which Economic Consequences?," CEPII Policy Brief 2013-01, CEPII research center.
    5. Yuan Li & John C. Beghin, 2017. "A meta-analysis of estimates of the impact of technical barriers to trade," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 4, pages 63-77, World Scientific Publishing Co. Pte. Ltd..
    6. Michael Burton & Dan Rigby & Trevor Young, 2001. "Consumer attitudes to genetically modified organisms in food in the UK," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 28(4), pages 479-498, December.
    7. Fredrik Carlsson & Peter Frykblom & Carl Johan Lagerkvist, 2007. "Consumer Benefits of Labels and Bans on GM Foods—Choice Experiments with Swedish Consumers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(1), pages 152-161.
    8. Jayson L. Lusk & Jutta Roosen & John A. Fox, 2003. "Demand for Beef from Cattle Administered Growth Hormones or Fed Genetically Modified Corn: A Comparison of Consumers in France, Germany, the United Kingdom, and the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 16-29.
    9. Gallaway, Michael P. & McDaniel, Christine A. & Rivera, Sandra A., 2003. "Short-run and long-run industry-level estimates of U.S. Armington elasticities," The North American Journal of Economics and Finance, Elsevier, vol. 14(1), pages 49-68, March.
    10. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    11. Anne-Célia Disdier & Charlotte Emlinger & Jean Fouré, 2015. "Atlantic versus Pacific Agreement in Agri-food Sectors: Does the Winner Take it All?," PSE - G-MOND WORKING PAPERS halshs-01190840, HAL.
    12. Frode Alfnes, 2004. "Stated preferences for imported and hormone-treated beef: application of a mixed logit model," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 31(1), pages 19-37, March.
    13. Peter Egger & Joseph Francois & Miriam Manchin & Douglas Nelson, 2015. "Non-tariff barriers, integration and the transatlantic economy," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 30(83), pages 539-584.
    14. Kerr, William & Hobbs, Jill, 2015. "Protectionism is "Alive and Well"- Agriculture in the EU-Canada Trade Agreement," 2015 Conference, August 9-14, 2015, Milan, Italy 211840, International Association of Agricultural Economists.
    15. Andreas Dür & Leonardo Baccini & Manfred Elsig, 2014. "The design of international trade agreements: Introducing a new dataset," The Review of International Organizations, Springer, vol. 9(3), pages 353-375, September.
    16. Frode Alfnes & Kyrre Rickertsen, 2003. "European Consumers' Willingness to Pay for U.S. Beef in Experimental Auction Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 396-405.
    17. Everett Peterson & Jason Grant & Donna Roberts & Vuko Karov, 2013. "Evaluating the Trade Restrictiveness of Phytosanitary Measures on U.S. Fresh Fruit and Vegetable Imports," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(4), pages 842-858.
    18. Dür, Andreas & Baccini, Leonardo & Elsig, Manfred, 2014. "The design of international trade agreements: introducing a new dataset," LSE Research Online Documents on Economics 59179, London School of Economics and Political Science, LSE Library.
    19. J. M. C. Santos Silva & Silvana Tenreyro, 2006. "The Log of Gravity," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 641-658, November.
    20. Jayson L. Lusk, 2003. "Effects of Cheap Talk on Consumer Willingness-to-Pay for Golden Rice," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 840-856.
    21. Moon, Wanki & Balasubramanian, Siva K. & Rimal, Arbindra, 2007. "Willingness to Pay (WTP) a Premium for Non-GM Foods versus Willingness to Accept (WTA) a Discount for GM Foods," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 32(2), pages 1-20, August.
    22. Kynda R. Curtis & Klaus Moeltner, 2007. "The effect of consumer risk perceptions on the propensity to purchase genetically modified foods in Romania," Agribusiness, John Wiley & Sons, Ltd., vol. 23(2), pages 263-278.
    23. Tonsor, Glynn T. & Schroeder, Ted C., 2003. "European Consumer Preferences For U.S. And Domestic Beef: Willingness To Pay For Source Verification, Hormone-Free, And Genetically Modified Organism-Free Beef," 2003 Annual meeting, July 27-30, Montreal, Canada 21974, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    24. Olivier Cadot & Alan Asprilla & Julien Gourdon & Ralph Peters & Christian Knebel, 2015. "Deep Regional Integration And Non-Tariff Measures: A Methodology For Data Analysis," UNCTAD Blue Series Papers 69, United Nations Conference on Trade and Development.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fabio Gaetano Santeramo & Emilia Lamonaca, 2019. "The Effects of Non‐tariff Measures on Agri‐food Trade: A Review and Meta‐analysis of Empirical Evidence," Journal of Agricultural Economics, Wiley Blackwell, vol. 70(3), pages 595-617, September.
    2. Fabio Gaetano Santeramo & Emilia Lamonaca, 2022. "On the trade effects of bilateral SPS measures in developed and developing countries," The World Economy, Wiley Blackwell, vol. 45(10), pages 3109-3145, October.
    3. Santeramo, F G & Lamonaca, E & Nardone, G & Seccia, A, 2018. "On the Effects of Bilateral Agreements in World Wine Trade On the Effects of Bilateral Agreements in World Wine Trade," 2018 Seventh AIEAA Conference, June 14-15, Conegliano, Italy 275644, Italian Association of Agricultural and Applied Economics (AIEAA).
    4. Beckman, Jayson & Burfisher, Mary & Mitchell, Lorraine & Arita, Shawn, 2021. "Hidden obstacles to trade: The case of the EU’s Ban on beef hormones," Journal of Policy Modeling, Elsevier, vol. 43(6), pages 1332-1343.
    5. Fatima Olanike Kareem & Olayinka Idowu Kareem, 2021. "Employment Responses to EU Food Safety Regulations: A Gendered Perspective," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(6), pages 1899-1929, December.
    6. Santeramo, Fabio G., 2017. "On Non-Tariff Measures and Changes in Trade Routes: From North-North to South-South Trade?," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 263493, European Association of Agricultural Economists.
    7. Santeramo, Fabio Gaetano & Lamonaca, Emilia, 2019. "The role of non-tariff measures in the agri-food sector: positive or negative instruments for trade?," MPRA Paper 96763, University Library of Munich, Germany.
    8. Ngavozafy, Antonia & Latorre, María C., 2021. "New EU-MERCOSUR Association Agreement: Quantitative Assessment of its Impacts on Global Trade in Agricultural Commodities," Conference papers 333294, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    9. Santeramo, Fabio Gaetano & Lamonaca, Emilia & Nardone, Gianluca & Seccia, Antonio, 2018. "The Benefits of Country-specific Non-Tariff Measures in World Wine Trade," MPRA Paper 90647, University Library of Munich, Germany.
    10. Grübler, Julia & Reiter, Oliver, 2021. "Characterising non-tariff trade policy," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 138-163.
    11. Fabio Gaetano Santeramo & Valentina Guerrieri & Emilia Lamonaca, 2018. "On the Evolution of Trade and Sanitary and Phytosanitary Standards: The Role of Trade Agreements," Agriculture, MDPI, vol. 9(1), pages 1-15, December.
    12. Jacob Wood & Jie Wu & Yilin Li & Jungsuk Kim, 2019. "The Impact of TBT and SPS Measures on Japanese and Korean Exports to China," Sustainability, MDPI, vol. 11(21), pages 1-23, November.
    13. Curzi, Daniele & Schuster, Monica & Maertens, Miet & Olper, Alessandro, 2020. "Standards, trade margins and product quality: Firm-level evidence from Peru," Food Policy, Elsevier, vol. 91(C).
    14. Dela-Dem Doe Fiankor & Daniele Curzi & Alessandro Olper, 2021. "Trade, price and quality upgrading effects of agri-food standards [Endogenous Trade Policy with Heterogeneous Firms]," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 48(4), pages 835-877.
    15. Hejazi, Mina & Grant, Jason H. & Peterson, Everett, 2022. "Trade impact of maximum residue limits in fresh fruits and vegetables," Food Policy, Elsevier, vol. 106(C).
    16. Michael Fuenfzig & Pietro Maggi & Corine Besseling & Anne Winkel & Michael Flickenschild & Przemysław Kowalski & Katarzyna Sidło & Anna Malinowska & Marek Peda & Christopher Hartwell & Patricia Augier, 2021. "Ex-post Evaluation of the impact of trade chapters of the Euro-Mediterranean Association Agreements with six partners: Algeria, Egypt, Jordan, Lebanon, Morocco and Tunisia," Working Papers hal-03435264, HAL.
    17. Mike Webb & Anna Strutt & John Gibson & Terrie Walmsley, 2020. "Modelling the impact of non‐tariff measures on supply chains in ASEAN," The World Economy, Wiley Blackwell, vol. 43(8), pages 2172-2198, August.
    18. Leudjou, Roland, 2021. "Assessing the impacts of eliminating Non-Tariff Barriers in the framework of the African Continental Free Trade Area on Cameroons economy," Conference papers 330231, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    19. Calil, Yuri Clements Daglia & Ribera, Luis A., 2020. "EU–Mercosur Free Trade Agreement: Implications for Agriculture," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304548, Agricultural and Applied Economics Association.
    20. Kelvin Balcombe & Dylan Bradley & Iain Fraser, 2020. "The Economic Analysis of Consumer Attitudes Towards Food Produced Using Prohibited Production Methods: Do Consumers Really Care?," Studies in Economics 2004, School of Economics, University of Kent.
    21. Ngavozafy, Antonia & Suarez-Cuesta, David & Latorre, María C., 2022. "New EU-MERCOSUR Association Agreement: Quantitative Impact Assessment of the Liberalization through Tariff Rate Quotas," Conference papers 333466, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    22. Jayson Beckman & Steven Zahniser, 2018. "The effects on intraregional agricultural trade of ending NAFTA's market access provisions," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(4), pages 599-612, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arita, Shawn & Mitchell, Lorraine & Beckman, Jayson, 2015. "Estimating the Effects of Selected Sanitary and Phytosanitary Measures and Technical Barriers to Trade on U.S.-EU Agricultural Trade," Economic Research Report 212887, United States Department of Agriculture, Economic Research Service.
    2. Beckman, Jayson & Arita, Shawn & Mitchell, Lorraine, 2015. "The Transatlantic Trade and Investment Partnership and Agriculture: A Quantitative Analysis," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205056, Agricultural and Applied Economics Association.
    3. Beckman, Jayson & Arita, Shawn & Mitchell, Lorraine & Burfisher, Mary, 2015. "Agriculture in the Transatlantic Trade and Investment Partnership: Tariffs, Tariff-Rate Quotas, and Non-Tariff Measures," Economic Research Report 212886, United States Department of Agriculture, Economic Research Service.
    4. Tonsor, Glynn T. & Olynk, Nicole J. & Wolf, Christopher A., 2009. "Consumer Preferences for Animal Welfare Attributes: The Case of Gestation Crates," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 41(3), pages 1-17, December.
    5. Jafari, Yaghoob & Britz, Wolfgang, 2018. "Modelling heterogeneous firms and non-tariff measures in free trade agreements using Computable General Equilibrium," Economic Modelling, Elsevier, vol. 73(C), pages 279-294.
    6. Kox, Henk L.M. & Rojas Romasgosa, Hugo, 2019. "Gravity estimations with FDI bilateral data: Potential FDI effects of deep preferential trade agreements," MPRA Paper 96318, University Library of Munich, Germany.
    7. Alfnes, Frode & Steine, Gro, 2005. "None-of-These Bias in Stated Choice Experiments," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24761, European Association of Agricultural Economists.
    8. Henk L. M. Kox & Hugo Rojas‐Romagosa, 2020. "How trade and investment agreements affect bilateral foreign direct investment: Results from a structural gravity model," The World Economy, Wiley Blackwell, vol. 43(12), December.
    9. Glynn T. Tonsor & Ted C. Schroeder & Joost M. E. Pennings & James Mintert, 2009. "Consumer Valuations of Beef Steak Food Safety Enhancement in Canada, Japan, Mexico, and the United States," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(3), pages 395-416, September.
    10. Ahcar, Jaime & Siroën, Jean-Marc, 2017. "Deep Integration: Considering the Heterogeneity of Free Trade Agreements," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 32(3), pages 615-659.
    11. Eddy Bekkers & Joseph F. Francois & Hugo Rojas†Romagosa, 2018. "Melting Ice Caps and the Economic Impact of Opening the Northern Sea Route," Economic Journal, Royal Economic Society, vol. 128(610), pages 1095-1127, May.
    12. Naoto JINJI & Yukiko SAWADA & Xingyuan ZHANG & Shoji HARUNA, 2021. "Gravity for Cross-border Licensing and the Impact of Deep Trade Agreements: Theory and Evidence," Discussion papers e-20-008, Graduate School of Economics , Kyoto University.
    13. Wolf, Christopher A. & Tonsor, Glynn T. & Olynk, Nicole J., 2011. "Understanding U.S. Consumer Demand for Milk Production Attributes," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(2), pages 1-17.
    14. Loureiro, Maria L. & Umberger, Wendy J., 2007. "A choice experiment model for beef: What US consumer responses tell us about relative preferences for food safety, country-of-origin labeling and traceability," Food Policy, Elsevier, vol. 32(4), pages 496-514, August.
    15. Nuno Limão, 2016. "Preferential Trade Agreements," NBER Working Papers 22138, National Bureau of Economic Research, Inc.
    16. Harald Oberhofer & Michael Pfaffermayr & Yvonne Wolfmayr, 2021. "Die Auswirkungen des Brexit auf Österreichs Wirtschaft," WIFO Studies, WIFO, number 66782, Juni.
    17. Jacopo Timini & Nicola Cortinovis & Fernando López Vicente, 2022. "The heterogeneous effects of trade agreements with labour provisions," The World Economy, Wiley Blackwell, vol. 45(9), pages 2820-2853, September.
    18. Rutger Teulings, 2017. "Brexit and The Impact of Gradual Economic Integration on Export," Tinbergen Institute Discussion Papers 17-075/VI, Tinbergen Institute.
    19. Milena Kern & Jörg Paetzold & Hannes Winner, 2021. "Cutting red tape for trade in services," The World Economy, Wiley Blackwell, vol. 44(10), pages 2858-2886, October.
    20. Inmaculada Martínez‐Zarzoso & Anca M. Voicu & Martina Vidovic, 2020. "Production networks in Europe: A natural experiment of the European Union enlargement to the east," Review of International Economics, Wiley Blackwell, vol. 28(5), pages 1143-1163, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jfpoli:v:68:y:2017:i:c:p:233-247. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/foodpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.