IDEAS home Printed from https://ideas.repec.org/p/ags/aaea14/170462.html
   My bibliography  Save this paper

Trade liberalization in the presence of domestic regulations: Impacts of the proposed EU-U.S. free trade agreement on wine markets

Author

Listed:
  • Rickard, Brad
  • Gergaud, Olivier
  • Hu, Wenjing

Abstract

The United States and the European Union have embarked on ambitious negotiations to create a comprehensive free trade agreement known as the Transatlantic Trade and Investment Partnership (TTIP). Agricultural markets receive relatively high levels of support and protection in both regions, and therefore are sensitive to the discussions surrounding the TTIP. Wine is the highest valued agricultural product traded between the United States and the EU, and any reduction in trade barriers resulting from the TTIP has the capacity to generate additional trade in this sector. We carefully develop parameters to characterize the effects of tariffs and domestic regulations that affect production and consumption of wine in these two regions. Results show that reductions in tariffs would have relatively small effects in these wine markets, whereas reductions in EU domestic policies that affect wine grape production would have much larger trade and welfare implications.

Suggested Citation

  • Rickard, Brad & Gergaud, Olivier & Hu, Wenjing, 2014. "Trade liberalization in the presence of domestic regulations: Impacts of the proposed EU-U.S. free trade agreement on wine markets," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170462, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea14:170462
    DOI: 10.22004/ag.econ.170462
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/170462/files/TTIPWine_Nov9_AgEconSearch_2014%20_1_.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.170462?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
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Kym Anderson & David Norman & Glyn Wittwer, 2019. "Globalisation of the World’s Wine Markets," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 2, pages 27-50, World Scientific Publishing Co. Pte. Ltd..
    2. Roley R. Piggott, 1992. "Some Old Truths Revisited," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 36(2), pages 117-140, August.
    3. Bradley J. Rickard, 2012. "The Economics Of Introducing Wine Into Grocery Stores," Contemporary Economic Policy, Western Economic Association International, vol. 30(3), pages 382-398, July.
    4. Jerry Ellig & Alan E. Wiseman, 2013. "Price Effects and the Commerce Clause: The Case of State Wine Shipping Laws," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 10(2), pages 196-229, June.
    5. Kyle Bagwell & Robert W. Staiger, 2001. "Domestic Policies, National Sovereignty, and International Economic Institutions," The Quarterly Journal of Economics, Oxford University Press, vol. 116(2), pages 519-562.
    6. Tomson Ogwang & Danny Cho, 2009. "Economic determinants of the consumption of alcoholic beverages in Canada: a panel data analysis," Empirical Economics, Springer, vol. 37(3), pages 599-613, December.
    7. Koen Deconinck & Johan Swinnen, 2015. "The economics of planting rights in wine production," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 42(3), pages 419-440.
    8. A. E. Holmans, 1964. "The Derived Demand Curve Fora Productive Factor And The Industry Supply Curve," Oxford Economic Papers, Oxford University Press, vol. 16(2), pages 235-261.
    9. James Fogarty, 2010. "The Demand For Beer, Wine And Spirits: A Survey Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 24(3), pages 428-478, July.
    10. Fuller, Kate B. & Alston, Julian M., 2012. "The Demand for California Wine Grapes," Journal of Wine Economics, Cambridge University Press, vol. 7(2), pages 192-212, November.
    11. Bradley J. Rickard & Marco Costanigro & Teevrat Garg, 2013. "Economic and Social Implications of Regulating Alcohol Availability in Grocery Stores," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 35(4), pages 613-633.
    12. Franck, Raphaël & Johnson, Noel D. & Nye, John V.C., 2014. "From internal taxes to national regulation: Evidence from a French wine tax reform at the turn of the twentieth century," Explorations in Economic History, Elsevier, vol. 51(C), pages 77-93.
    13. Lionel Fontagné & Julien Gourdon & Sébastien Jean, 2013. "Transatlantic Trade: Whither Partnership, Which Economic Consequences?," CEPII Policy Brief 2013-01, CEPII research center.
    14. Preety Ramful & Xueyan Zhao, 2008. "Individual Heterogeneity in Alcohol Consumption: The Case of Beer, Wine and Spirits in Australia," The Economic Record, The Economic Society of Australia, vol. 84(265), pages 207-222, June.
    15. R. Carew & W. J. Florkowski & S. He, 2004. "Demand for Domestic and Imported Table Wine in British Columbia: A Source-differentiated Almost Ideal Demand System Approach," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 52(2), pages 183-199, July.
    16. Gina M. Riekhof & Michael E. Sykuta, 2005. "Politics, Economics, and the Regulation of Direct Interstate Shipping in the Wine Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(2), pages 439-452.
    17. Volpe, Richard & Green, Richard & Heien, Dale & Howitt, Richard, 2010. "Estimating the Supply Elasticity of California Wine Grapes Using Regional Systems of Equations," Journal of Wine Economics, Cambridge University Press, vol. 5(2), pages 219-235, April.
    18. Piggott, Roley R., 1992. "Some Old Truths Revisited," 1992 Conference (36th), February 10-13, 1992, Canberra, Australia 147251, Australian Agricultural and Resource Economics Society.
    19. Critz, José Morilla & Olmstead, Alan L. & Rhode, Paul W., 1999. "“Horn of Plenty†: The Globalization of Mediterranean Horticulture and the Economic Development of Southern Europe, 1880–1930," The Journal of Economic History, Cambridge University Press, vol. 59(2), pages 316-352, June.
    20. Piggott, Roley R., 1992. "Some Old Truths Revisited," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 36(2), pages 1-24, August.
    21. Meloni, Giulia & Swinnen, Johan, 2013. "The Political Economy of European Wine Regulations," Journal of Wine Economics, Cambridge University Press, vol. 8(3), pages 244-284, December.
    22. Anderson, Kym & Kurzweil, Marianne & Martin, William J. & Sandri, Damiano & Valenzuela, Ernesto, 2008. "Methodology for Measuring Distortions to Agricultural Incentives," Agricultural Distortions Working Paper Series 48326, World Bank.
    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. 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.
    2. Gaeta, Davide & Corsinovi, Paola, 2015. "Traditional Terms and Appellation Wines Debates in Sight of TTIP Negotiation," 145th Seminar, April 14-15, 2015, Parma, Italy 200234, European Association of Agricultural Economists.
    3. 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.
    4. 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).
    5. Gabrielyan, Georgi T., 2017. "Economics of Import Duty and Excise Tax Drawback," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258026, Agricultural and Applied Economics Association.

    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. 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.
    2. Noel Perceval Assogba & Daowei Zhang, 2020. "An Economic Analysis of Tropical Forest Resource Conservation in a Protected Area," Sustainability, MDPI, vol. 12(14), pages 1-12, July.
    3. Sean A. Cahill, 1997. "Calculating The Rate Of Decoupling For Crops Under Cap/Oilseeds Reform," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 349-378, January.
    4. Lavoie, Nathalie, 2002. "Price Discrimination in the Context of Vertical Differentiation: An Application to Canadian Wheat Exports," Research Reports 25210, University of Connecticut, Food Marketing Policy Center.
    5. Seyoum, Emayenesh & Goddard, Ellen & MacLaren, Donald & Griffith, Garry, 2002. "Modelling World Dairy Trade: The Potential Impact of Officially Supported Export Credits on the Australian Dairy Industry," 2002 Conference (46th), February 13-15, 2002, Canberra, Australia 183422, Australian Agricultural and Resource Economics Society.
    6. Rickard, Bradley J. & Gonsalves, Jana L., 2008. "How would compliance with dietary recommendations affect revenues for agricultural producers?," Food Policy, Elsevier, vol. 33(5), pages 422-433, October.
    7. Benjamin Henderson & Lynn Henry & Gordon MacAulay & Jen Tatuh, 2010. "Potential Payoff from R&D in the Coconut Industry of North Sulawesi, Indonesia," Asian Economic Journal, East Asian Economic Association, vol. 24(1), pages 69-85, March.
    8. James, Jennifer S., 1999. "Endogenous Quality And Agricultural Policy Analysis," 1999 Annual meeting, August 8-11, Nashville, TN 21634, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Ambarawati, I Gusti Agung Ayu & Zhao, Xueyan & Griffith, Garry R. & Piggott, Roley R., 2003. "Distribution of Gains from Cattle Development in a Multi-Stage Production System: The Case of the Bali Beef Industry," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57829, Australian Agricultural and Resource Economics Society.
    10. Ying Lin & Henry W. Kinnucan, 2020. "The optimal export tax for a primary commodity in a vertical market," Agricultural Economics, International Association of Agricultural Economists, vol. 51(6), pages 909-922, November.
    11. Ambarawati, I Gusti Agung Ayu & Zhao, Xueyan & Griffith, Garry R. & Piggott, Roley R., 2004. "The Cost to the Bali Beef Industry of the October 2002 Terrorist Attack," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 12.
    12. X. Zhao & J.D. Mullen & G.R. Griffith & R.R. Piggott & W.E. Griffiths, 2002. "The Economic Incidence of R&D and Promotion Investments in the Australian Beef Industry," Monash Econometrics and Business Statistics Working Papers 16/02, Monash University, Department of Econometrics and Business Statistics.
    13. Huang, Hsin & van Tongeren, Frank & Dewbre, Joe Dewbre, Joe & van Meijl, Hans, 2004. "A New Representation of Agricultural Production Technology in GTAP," Conference papers 330233, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    14. Lavoie, Nathalie, 2002. "An Empirical Evaluation Of The Canadian Wheat Board'S Ability To Price Discriminate In Bread Wheat Exports," 2002 Annual meeting, July 28-31, Long Beach, CA 19646, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Zhao, Xueyan & Mullen, John D. & Griffith, Garry R. & Griffiths, William E. & Piggott, Roley R., 2000. "An Equilibrium Displacement Model of the Australian Beef Industry," Research Reports 28007, New South Wales Department of Primary Industries Research Economists.
    16. Roshini Brizmohun, 2019. "Impact of climate change on food security of small islands: The case of Mauritius," Natural Resources Forum, Blackwell Publishing, vol. 43(3), pages 154-163, August.
    17. Li, Kuo & Griffith, Garry & Kingwell, Ross & Malcolm, Bill, 2017. "Measuring the Returns to Investment in Research and Development in the Australian Grains Industry," 2017 Conference (61st), February 7-10, 2017, Brisbane, Australia 258674, Australian Agricultural and Resource Economics Society.
    18. Paola Corsinovi & Davide Gaeta, 2017. "European Wine Policies and their consequences on the global wine trade," Economia agro-alimentare, FrancoAngeli Editore, vol. 19(1), pages 59-88.
    19. Ali, Mubarik & Ahmed, Faryal & Channa, Hira & Davies, Stephen, 2016. "Pakistan’s fertilizer sector: Structure, policies, performance, and impacts:," IFPRI discussion papers 1516, International Food Policy Research Institute (IFPRI).
    20. 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, July.

    More about this item

    Keywords

    Agricultural and Food Policy; International Relations/Trade;

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:ags:aaea14:170462. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    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.