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Preference erosion effects on the agricultural sector of the EU’s Mediterranean Partner Countries

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  • Kavallari, Aikaterini
  • Schmitz, P. Michael

Abstract

This paper analyses preference erosion effects on the agricultural sector of the EU’s Mediterranean Partner Countries (MPCs) with the partial equilibrium multi-commodity multi-region world trade model AGRISIM. Supposing that the preferences to the MPCs granted by the EU remain as of 2001 then the effects are evident for high protected markets like beef in Turkey, milk and rice in Morocco and olive oil in the MPCs. Supposing a free trade area between the EU and the MPCs, then the impacts are high for beef, milk and sugar. The farmers’ income decreases, but the consumers and the taxpayers benefit from lower prices and the overall welfare in all MPCs increases.

Suggested Citation

  • Kavallari, Aikaterini & Schmitz, P. Michael, 2010. "Preference erosion effects on the agricultural sector of the EU’s Mediterranean Partner Countries," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 11(2), June.
  • Handle: RePEc:ags:aergaa:118864
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    References listed on IDEAS

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    1. Patricia Augier & Michael Gasiorek, 2003. "The welfare implications of trade liberalization between the Southern Mediterranean and the EU," Applied Economics, Taylor & Francis Journals, vol. 35(10), pages 1171-1190.
    2. Thomas F. Rutherford & E. Elisabet Rutstrom & David Tarr, 2014. "Morocco's free trade agreement with the EU: A quantitative assessment," World Scientific Book Chapters,in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 17, pages 405-437 World Scientific Publishing Co. Pte. Ltd..
    3. Drusilla K. Brown & Alan V. Deardorff & Robert M. Stern, 2009. "Some Economic Effects of the Free Trade Agreement between Tunisia and the European Union," World Scientific Book Chapters,in: Globalization And International Trade Policies, chapter 11, pages 343-392 World Scientific Publishing Co. Pte. Ltd..
    4. Ravallion, Martin & Lokshin, Michael, 2004. "Gainers and losers from trade reform in Morocco," Policy Research Working Paper Series 3368, The World Bank.
    5. Chatti Rim, 2003. "A CGE Assessment of FTA Between Tunisia and the EU Under Oligopolistic Market Structures," Review of Middle East Economics and Finance, De Gruyter, vol. 1(2), pages 1-30, August.
    6. M'Barek, R. & Großkopf, W., 2002. "Der nordafrikansiche Agrarsektor im Spannungsfeld einer euromediterranen Freihandelszone," Proceedings "Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.", German Association of Agricultural Economists (GEWISOLA), vol. 37.
    7. Minot, Nicholas & Chemingui, Mohamed & Thomas, Marcelle & Dewina, Reno & Orden, David, 2007. "Impact of trade liberalization on agriculture in the near East and North Africa:," IFPRI books, International Food Policy Research Institute (IFPRI), number Nenatrade:2007.
    8. Glenn W. Harrison & Thomas F. Rutherford & David G. Tarr, 2014. "Economic implications for Turkey of a Customs Union with the European Union," World Scientific Book Chapters,in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 16, pages 395-404 World Scientific Publishing Co. Pte. Ltd..
    9. Bayar, Ali. & Diao, Xinshen & Yeldan, A. Erinc, 2000. "An intertemporal, multi-region general equilibrium model of agricultural trade liberalization in the South Mediterranean NICs, Turkey, and the European Union," TMD discussion papers 56, International Food Policy Research Institute (IFPRI).
    10. Konan, Denise Eby & Maskus, Keith E., 2000. "Joint trade liberalization and tax reform in a small open economy: the case of Egypt," Journal of Development Economics, Elsevier, vol. 61(2), pages 365-392, April.
    11. Hosoe, Nobuhiro, 2001. "A general equilibrium analysis of Jordan's trade liberalization," Journal of Policy Modeling, Elsevier, vol. 23(6), pages 595-600, August.
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    More about this item

    Keywords

    preference erosion; multilateral liberalisation; Mediterranean Partner Countries; AGRISIM; Agricultural and Food Policy; Q17; Q18; Q13;

    JEL classification:

    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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