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An Empirical Assessment of Agricultural Trade Policies in the Mediterranean Basin - Regional Effects on the EU Member States

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Author Info
Kavallari, Aikaterini
Schmitz, P. Michael
Abstract

The objective of this paper is to provide deeper insights on the impacts of agricultural policy reforms in the Mediterranean basin focusing on regional effects in the EU. The empirical analysis has been undertaken using the partial equilibrium multi commodity, multi region world trade model AGRISIM. The simulation results indicated that the CAP Reform for the Mediterranean commodities seems to affect only the EU Mediterranean Member states and the enlargement with Bulgaria and Romania only this two countries. Moreover the impacts on the markets of typical Mediterranean commodities included in the modelling exercise are limited. The supply in the EU changes mainly for those commodities that are of high protection as beef, whereas the demand increases being highest for beef. The prices adjust to the world market prices resulting thus to negative changes for the producer’s surplus, but to positive for the consumer’s surplus. The effects for the EU budget are also positive and overall welfare gains are to be expected.

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Paper provided by European Association of Agricultural Economists in its series 103rd Seminar, April 23-25, 2007, Barcelona, Spain with number 9395.

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Date of creation: 2007
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Handle: RePEc:ags:eaa103:9395

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Keywords: International Relations/Trade;

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  1. Mercenier, Jean & Yeldan, Erinc, 1997. "On Turkey's trade policy: Is a customs union with Europe enough?," European Economic Review, Elsevier, vol. 41(3-5), pages 871-880, April. [Downloadable!] (restricted)
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  2. Patricia Augier & Michael Gasiorek, 2003. "The welfare implications of trade liberalization between the Southern Mediterranean and the EU," Applied Economics, Taylor and Francis Journals, vol. 35(10), pages 1171-1190, January. [Downloadable!] (restricted)
  3. JosÈ-MarÌa GarcÌa-Alvarez-Coque, 2002. "Agricultural trade and the Barcelona Process: is full liberalisation possible?," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 29(3), pages 399-422, July.
  4. Bayar, Ali. & Diao, Xinshen & Yeldan, A. Erinc, 2000. "An intertemporal, multi-region general equilibrium model of agricultural trade liberalization in the South Mediterranean NICs, Turkey, and the European Union," TMD discussion papers 56, International Food Policy Research Institute (IFPRI). [Downloadable!]
  5. Konan, Denise Eby & Maskus, Keith E., 2000. "Joint trade liberalization and tax reform in a small open economy: the case of Egypt," Journal of Development Economics, Elsevier, vol. 61(2), pages 365-392, April. [Downloadable!] (restricted)
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