The entry price system for fresh fruit and vegetable exports from China to the EU -- Breaking a fly on the wheel?
China's exports of apples and pears to the EU have increased substantially, although the EU production of apples and pears is protected by the EU entry price system (EPS), aiming to protect EU producers against international competition by restricting imports below a minimum import price. This study investigates the relevance of the EPS for Chinese exports of apples and pears to the EU accounting for changes over time and seasonal variation. Our results suggest that the high relevance of the EPS for apples originating in China was of temporary nature, whereas the relevance of the EPS for pears originating in China is of a more general nature. In addition, the relevance of the EPS varies seasonally. Finally, we find that the production of pears in China is more competitive than the production of apples vis-à-vis the EU. Therefore, China's fresh fruit and vegetable (FFV) producers would benefit more from an improved EU market access for pears than for apples. Thus, China should put more effort in negotiating improved EU market access conditions for pears rather than for apples.
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