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The Price Stabilisation Effects of the EU import regime of fruit and vegetables: the case of tomatoes

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  • Cioffi, Antonio
  • Santeramo, Fabio Gaetano
  • Vitale, Cosimo

Abstract

The paper assesses the stabilization effects of the EU import regime for fresh fruit and vegetables based on the entry price system. The analysis is carried out on the EU prices of tomatoes and those of imports from Morocco, the main competing country on the EU domestic markets. It is based on the estimation of a threshold vector autoregressive econometric model that is shown capable of taking the workings of the import regime into account. The model shows that when prices of tomato imports are below the trigger entry prices the EU tomato market becomes isolated. However, the contribution of the import regime on price stabilization is rather limited. Since tomato imports from Morocco are granted zero tariff if their price is higher than the trigger entry price within a yearly quota that is completely filled, the largest contribution to market stabilization may well come from the size of the quota.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 25718.

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Date of creation: 2009
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Handle: RePEc:pra:mprapa:25718

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Related research

Keywords: fruit and vegetables; European Union ; entry prices; trade preferences; price stabilization ; tomatoes;

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  1. 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.
  2. David Hummels & Alexandre Skiba, 2002. "Shipping the Good Apples Out? An Empirical Confirmation of the Alchian-Allen Conjecture," NBER Working Papers 9023, National Bureau of Economic Research, Inc.
  3. George Kapetanios & Yongcheol Shin, 2002. "Unit Root Tests in Three-Regime SETAR Models," Working Papers 465, Queen Mary, University of London, School of Economics and Finance.
  4. Nelson, Charles R. & Plosser, Charles I., 1982. "Trends and random walks in macroeconmic time series : Some evidence and implications," Journal of Monetary Economics, Elsevier, vol. 10(2), pages 139-162.
  5. Goetz, Linde & Grethe, Harald, 2009. "The EU entry price system for fresh fruits and vegetables - Paper tiger or powerful market barrier?," Food Policy, Elsevier, vol. 34(1), pages 81-93, February.
  6. n/a, 2001. "Balance of payments prospects in EMU," NIESR Discussion Papers 164, National Institute of Economic and Social Research.
  7. Kapetanios, George & Shin, Yongcheol & Snell, Andy, 2003. "Testing for a unit root in the nonlinear STAR framework," Journal of Econometrics, Elsevier, vol. 112(2), pages 359-379, February.
  8. Jaime De Pablo Valenciano & Juan Carlos Pérez Mesa, 2004. "The competitiveness of Spanish tomato export in the European Union," International Trade 0406004, EconWPA, revised 17 Jun 2004.
  9. Deaton, A. & Laroque, G., 1989. "On The Behavior Of Commodity Prices," Papers 145, Princeton, Woodrow Wilson School - Public and International Affairs.
  10. 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.
  11. Frederic Bec & Melika Ben Salem & Marine Carrasco, 2004. "Tests for Unit-Root versus Threshold Specification With an Application to the Purchasing Power Parity Relationship," Journal of Business & Economic Statistics, American Statistical Association, vol. 22, pages 382-395, October.
  12. JosÈ-MarÌa GarcÌa-Alvarez-Coque, 2002. "Agricultural trade and the Barcelona Process: is full liberalisation possible?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(3), pages 399-422, July.
  13. Cioffi, Antonio & dell'Aquila, Crescenzo, 2004. "The effects of trade policies for fresh fruit and vegetables of the European Union," Food Policy, Elsevier, vol. 29(2), pages 169-185, April.
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