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Effects of Trade Barriers on U.S. and World Apple Markets

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  • Stephen Devadoss
  • Prasanna Sridharan
  • Thomas Wahl

Abstract

Regional apple demand and supply parameters using Bayesian estimation were utilized to develop a spatial equilibrium model for the world apple market. A baseline scenario with existing tariffs was developed; a reduced tariff and free trade scenarios were simulated. Comparison of these scenarios with the baseline shows that apple trade is significantly greater under trade liberalization. China increases its exports by 174% under free trade and replaces France as the largest exporter. U.S. exports increased by about 140% to all regions except to Canada and Southeast Asia. Results confirm the importance of transportation costs and the interlinkages of prices in the world market in determining the trade flows. Nous avons utilisé des paramètres régionaux de l'offre et de la demande de pomme, déterminés à l'aide d'une estimation bayésienne, pour élaborer un modèle d'équilibre spatial du marché mondial de la pomme. Nous avons élaboré un scénario de base utilisant des tarifs douaniers existants et nous avons simulé des scénarios utilisant des tarifs douaniers réduits et le libre‐échange. Une comparaison de ces scénarios avec le scénario de base montre que le commerce de la pomme est significativement plus important dans un contexte de libéralisation des échanges. La Chine augmente ses exportations de 174 p. 100 dans un contexte de libre‐échange et détrône la France en tant que premier exportateur mondial. Les exportations des États‐Unis augmentent d'environ 140 p. 100 dans toutes les régions sauf au Canada et en Asie du Sud‐Est. Les résultats confirment l'importance des coûts de transport et des liens entre les prix sur le marché mondial dans la détermination du flux des échanges commerciaux.

Suggested Citation

  • 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.
    • Handle: RePEc:bla:canjag:v:57:y:2009:i:1:p:55-73
    DOI: 10.1111/j.1744-7976.2008.01138.x
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    References listed on IDEAS

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    1. Antonio Gomez-Plana & Stephen Devadoss, 2004. "A spatial equilibrium analysis of trade policy reforms on the world wheat market," Applied Economics, Taylor & Francis Journals, vol. 36(15), pages 1643-1648.
    2. 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(1), pages 1-20, April.
    3. repec:cup:cbooks:9780521623940 is not listed on IDEAS
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