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The Free Trade Area of the Americas and the Market for Processed Orange Products

Author

Listed:
  • Spreen, Thomas H.
  • Brewster, Charlene
  • Brown, Mark G.

Abstract

The proposed Free Trade Area of the Americas would join the world’s two largest processed orange producing regions: Brazil and the United States. Because the United States currently imposes a sizeable tariff on imported processed orange products, there is concern by U.S. orange growers over possible adverse effects resulting from tariff elimination. A model of the world processed orange market is developed as a spatial equilibrium model with implicit supply functions based on the dynamic behavior of orange production. The model is used to estimate the impact of U.S. tariff elimination on U.S. production, grower and processor prices, and imports. The results suggest a sizeable price impact on U.S. producers if the tariff is eliminated.

Suggested Citation

  • Spreen, Thomas H. & Brewster, Charlene & Brown, Mark G., 2003. "The Free Trade Area of the Americas and the Market for Processed Orange Products," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 35(01), April.
  • Handle: RePEc:ags:joaaec:37837
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    Cited by:

    1. Stephen Devadoss & Prasanna Sridharan & Thomas Wahl, 2009. "Effects of Trade Barriers on U.S. and World Apple Markets," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(1), pages 55-73, March.
    2. Spreen, Thomas H. & Brewster, Charlene & Brown, Mark G., 2002. "The Impact Of Elimination Of The U.S. Orange Juice Tariff On The Market For Processed Orange Products," Policy Briefs 15669, University of Florida, International Agricultural Trade and Policy Center.
    3. Spreen, Thomas H. & Baldwin, Jean-Paul, 2013. "The Impact of Huanglongbing (HLB) on Citrus Tree Planting in Florida," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142706, Southern Agricultural Economics Association.
    4. Stephen Devadoss & Angel Aguiar, 2006. "Effects of global trade liberalization on softwood lumber markets," Applied Economics, Taylor & Francis Journals, vol. 38(20), pages 2351-2360.
    5. Luckstead, Jeff & Devadoss, Stephen & Mittelhammer, Ron, 2015. "Imperfect Competition between Florida and Sao Paulo (Brazil) Orange Juice Producers in the U.S. and European Markets," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(1), January.
    6. Luckstead, Jeff & Devadoss, Stephen & Mittelhammer, Ron C., 2013. "Strategic Trade Policies in the U.S. Orange Juice Market: Competition between Florida and São Paulo," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149668, Agricultural and Applied Economics Association.
    7. Brown, Mark G. & Spreen, Thomas H. & Lee, Jonq-Ying, 2004. "Impacts On U.S. Prices Of Reducing Orange Juice Tariffs In Major World Markets," Journal of Food Distribution Research, Food Distribution Research Society, vol. 35(02), July.

    More about this item

    Keywords

    orange juice; spatial equilibrium; tariffs; trade; C61; F13;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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