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Relative Impact of the Norway-EU Salmon Agreement: A Midterm Assessment

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  • Kinnucan, Henry W.
  • Myrland, Oystein
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    Abstract

    An agreement between Norway and the European Commission specifies an increase in the export tax on Norwegian salmon entering EU markets from 0.75% to 3.00% effective 1 July 1997. Further, Norway's exports are subject to a price floor and quantity ceiling, neither of which were binding over the evaluation period. Since the tax's proceeds are to be used by Norway to fund generic marketing of Atlantic salmon, it is possible that the agreement is winwin, i.e., benefits United Kingdom and Norwegian producers alike. To test this, we use an equilibrium displacement model to estimate the agreement's effects on prices, trade flows, and producer welfare. Results based on data through 1999 suggest the agreement is indeed win-win, but that currency realignments and feed quota policy can easily neutralize or obscure the effects.

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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 2002 International Congress, August 28-31, 2002, Zaragoza, Spain with number 24826.

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    Date of creation: 2002
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    Handle: RePEc:ags:eaae02:24826

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    Related research

    Keywords: equilibrium displacement modeling; export tax; generic advertising; trade policy; International Relations/Trade;

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    Cited by:
    1. Henry W. Kinnucan & Øystein Myrland, 2003. "Free-rider effects of generic advertising: The case of salmon," Agribusiness, John Wiley & Sons, Ltd., vol. 19(3), pages 315-324.

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