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Shipping the good beef out: EU trade liberalization to Mercosur exports

Author

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  • Ramos, Maria Priscila
  • Bureau, Jean-Christophe
  • Salvatici, Luca

Abstract

The European Union tariff schedule includes a large number of specific and composite tariffs as well as many tariff-rate quotas (TRQs), which affect the composition of imports. By altering price ratios between products with different unit values, both can generate the typical Alchian-Allen ’shipping the good apples out’ effect in foreign countries’ exports to the EU. Different patterns of trade liberalization, either through tariff reduction or an expansion in preferential-access quotas, might have different consequences for producers and consumers because of changes in the composition of trade. We illustrate the issues at stake in the beef sector, focusing on Mercosur exports to the EU. We model import demand for different qualities in the presence of a TRQ and we derive comparative statics results for changes in various policy variables.

Suggested Citation

  • Ramos, Maria Priscila & Bureau, Jean-Christophe & Salvatici, Luca, 2007. "Shipping the good beef out: EU trade liberalization to Mercosur exports," Working Papers 7215, TRADEAG - Agricultural Trade Agreements.
  • Handle: RePEc:ags:tragwp:7215
    DOI: 10.22004/ag.econ.7215
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    References listed on IDEAS

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    Cited by:

    1. Narayanan, Badri G. & Hertel, Thomas W. & Horridge, J. Mark, 2010. "Disaggregated data and trade policy analysis: The value of linking partial and general equilibrium models," Economic Modelling, Elsevier, vol. 27(3), pages 755-766, May.
    2. John C. Beghin & Heidi Schweizer, 2021. "Agricultural Trade Costs," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(2), pages 500-530, June.
    3. Laborde, David & Martin, Will & van der Mensbrugghe, Dominique, 2008. "Implications of the 2008 Doha Draft Agricultural and NAMA Market Access Modalities for Developing Countries," Conference papers 331719, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Ramos, Maria Priscila, 2007. "Politique Commerciale, Qualité et Environnement: une Application aux Négociations Commerciales entre l’Union Européenne et le Mercosur," MPRA Paper 12640, University Library of Munich, Germany.
    5. Narayana, Badri G. & Hertel, Thomas W. & Horridge, J. Mark, 2010. "Linking Partial and General Equilibrium Models: A GTAP Application Using TASTE," Technical Papers 283427, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Decreux, Yvan & Ramos, Maria Priscila, 2007. "How does tariff-rate quota modelling affect CGE results? An application for MIRAGE," Working Papers 7206, TRADEAG - Agricultural Trade Agreements.

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