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Measuring domestic implications of tariff cuts under EU entry price regime

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  • Anton, Jesus
  • Muniz, Ignacio Atance
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    Abstract

    The entry price regime in the European Union (EU) applies to several products, mainly fresh fruits and vegetables. The complexity of the system with endogenous applied tariffs makes the evaluation of different alternatives of tariff cuts more challenging than for other regimes. The challenge applies to academics with interest on estimating market impacts, to WTO negotiators that need to evaluate proposals and to policy-makers that may need to take decisions on options such as the declaration of a sensitive product. This paper develops a methodology to compare different tariff cuts alternatives, including the URAA method that implies reductions in the level of the entry price, constant entry price, and Tariff Rate Quotas expansion. Uncertainty about international prices plays a central role on the estimated impacts on market access of different options. Reducing the level of entry prices can have relatively large impacts on market access for some products. The sensitive product treatment with TRQs may generate larger market access than the normal treatment. The proposed methodology proofs to be able to quantify the economic impacts of tariff cuts under EU entry price regime.

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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 103rd Seminar, April 23-25, 2007, Barcelona, Spain with number 9400.

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    Date of creation: 2007
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    Handle: RePEc:ags:eaa103:9400

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    Keywords: International Relations/Trade;

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    1. Garcia Alvarez-Coque, Jose-Maria & Martinez-Gomez, Victor & Villanueva, Miquel, 2006. "Modelling Euro-Mediterranean Agricultural Trade," Working Papers 18875, TRADEAG - Agricultural Trade Agreements.
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    Cited by:
    1. Garcia Alvarez-Coque, Jose-Maria & Martinez-Gomez, Victor, 2007. "Assessing Euro-Med Trade Preferences: The Case of Entry Price Reduction," Working Papers 7293, TRADEAG - Agricultural Trade Agreements.
    2. Martinez-Gomez, Victor, 2008. "Current preferences of Southern Mediterranean Countries and their erosion after variations of the entry price system," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44157, European Association of Agricultural Economists.
    3. Goetz, Linde & Grethe, Harald, 2007. "The Relevance of the EU Entry Price System for Imports of Fresh Fruits and Vegetables," Working Papers 7114, International Agricultural Trade Research Consortium.
    4. Emlinger, Charlotte & Chevassus-Lozza, Emmanuelle & Jacquet, Florence, 2010. "Fruit and vegetable access to EU markets: Dissecting tariffs faced by Mediterranean countries," Food Policy, Elsevier, vol. 35(6), pages 599-611, December.
    5. Goetz, Linde & Grethe, Harald, 2008. "How effective is the EU Entry Price System for Fresh Fruits and Vegetables?," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44063, European Association of Agricultural Economists.
    6. Cioffi, Antonio & Santeramo, Fabio Gaetano & Vitale, Cosimo, 2010. "The price stabilization effects of the EU entry price scheme for fruits and vegetables," MPRA Paper 24828, University Library of Munich, Germany.

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