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Current preferences of Southern Mediterranean Countries and their erosion after variations of the entry price system

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  • Martinez-Gomez, Victor
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    Abstract

    It has been calculated the value of the preference margin granted to Euro-Mediterranean partners in the cases of reduced entry prices in force, and then it has been simulated the impact of EU trade liberalisation for F&V on such values after two different alternatives of EP system variations resulting from a WTO agreement. The results of current preferences indicate that in monetary terms there is only a significant relevance of the preferential EPs in the case of Moroccan tomatoes and, to a lesser extent, in Moroccan clementines. Very little is the relevance for Jordanian tomatoes and cucumbers and Moroccan courgettes, cucumbers and artichokes. In the cases of oranges from Egypt, Morocco, Israel and Jordan, preferential EP has not meant potential monetary transfers to these preference-receiver countries. Instead, the ad valorem tariff exoneration seems crucial in almost all the products. With regard to the erosion of preferences as a result of a WTO agreement, the magnitude of the erosion depends crucially on the variation/no-variation of the current trigger EPs, and the undermining of preferences is concentrated mostly on Moroccan tomatoes.

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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 44157.

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    Date of creation: 2008
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    Handle: RePEc:ags:eaae08:44157

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    Keywords: Entry prices; erosion of trade preferences; Euro-Mediterranean trade; fruits and vegetables; International Relations/Trade;

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    1. Yamazaki, Fumiko, 1996. "Potential erosion of trade preferences in agricultural products," Food Policy, Elsevier, vol. 21(4-5), pages 409-417.
    2. Grethe, Harald & Nolte, Stephan & Tangermann, Stefan, 2005. "The Development and Future of EU Agricultural Trade Preferences for North-African and Near-East Countries," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24535, European Association of Agricultural Economists.
    3. Chemnitz, Christine & Grethe, Harald, 2005. "EU Trade Preferences for Moroccan Tomato Exports--Who Benefits?," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24686, European Association of Agricultural Economists.
    4. Gomez, Victor D. Martinez, 2007. "Assessing Euro-Med Trade Preferences: The Case of Entry Price Reduction," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9447, European Association of Agricultural Economists.
    5. Swinbank, Alan & Ritson, Christopher, 1995. "The impact of the GATT agreement on EU fruit and vegetable policy," Food Policy, Elsevier, vol. 20(4), pages 339-357, August.
    6. Anton, Jesus & Muniz, Ignacio Atance, 2007. "Measuring domestic implications of tariff cuts under EU entry price regime," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9400, European Association of Agricultural Economists.
    7. 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.
    8. Martinez-Gomez, Victor, 2007. "Assessing Euro-Med trade preferences: the case of entry price reduction," MPRA Paper 1865, University Library of Munich, Germany.
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