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The entry price threshold in EU agriculture: Deterrent or barrier?

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  • Santeramo, Fabio Gaetano
  • Cioffi, Antonio

Abstract

The paper investigates the effects of the entry price scheme (EPS) for a specific sector of agriculture: fresh fruit and vegetables. The analysis is conducted on the EU prices of tomatoes, lemons and apples for some of the main competing countries on the EU domestic markets: Morocco, Argentina, Turkey and China. The econometric analysis is based on testing and estimating a switching vector autoregressive model with endogenous threshold entry price level. The model shows the isolation effects and the accumulation of Standard Import Values (SIVs) above the trigger entry price. This paper contributes to clarify the role played by the EPS in avoiding or deterring low priced imports from main EU partner countries.

Suggested Citation

  • Santeramo, Fabio Gaetano & Cioffi, Antonio, 2012. "The entry price threshold in EU agriculture: Deterrent or barrier?," Journal of Policy Modeling, Elsevier, vol. 34(5), pages 691-704.
  • Handle: RePEc:eee:jpolmo:v:34:y:2012:i:5:p:691-704
    DOI: 10.1016/j.jpolmod.2012.02.001
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    Citations

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    Cited by:

    1. Santeramo, Fabio Gaetano & Cioffi, Antonio, 2012. "Transmission Of Market Crises In The European Vegetables Sector," Politica Agricola Internazionale - International Agricultural Policy, Edizioni L'Informatore Agrario, issue Issue 2, pages 1-10, March.
    2. Listorti, Giulia & Esposti, Roberto, 2012. "Horizontal Price Transmission in Agricultural Markets: Fundamental Concepts and Open Empirical Issues," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 0(Issue 1), pages 1-28, April.
    3. Shabnam, Nadia & Santeramo, Fabio Gaetano & Seccia, Antonio & Asghar, Zahid, 2016. "The Impact of the Food Price Crises on the demand for nutrients in Pakistan," MPRA Paper 72971, University Library of Munich, Germany.
    4. Valenciano, Jaime de Pablo & Battistuzzi, Miguel Angel Giacinti & Azcaráte, Tomás García, 2015. ""Banana War" And World Trade Changes," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 0(Number 2), pages 1-12, April.
    5. Andrea Dal Bianco & Vasco Ladislao Boatto & Francesco Caracciolo & Fabio Gaetano Santeramo, 2016. "Tariffs and non-tariff frictions in the world wine trade," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 43(1), pages 31-57.
    6. Pappalardo, Gioacchino & Bucca, Marcella & Zarba, Alfonso Silvio, 2012. "Mediterranean Agricultural Product Trade between the EU and Morocco in the Perspective of the New Bilateral Agreement: Main Causes of Imbalance and Possible Effects," Politica Agricola Internazionale - International Agricultural Policy, Edizioni L'Informatore Agrario, issue Issue 3, pages 1-14, September.
    7. Márquez-Ramos, Laura & Martinez-Gomez, Victor, 2014. "A gravity assessment of Moroccan F&V monthly exports to EU countries: The effect of trade preferences revisited," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182951, European Association of Agricultural Economists.
    8. Seccia, Antonio & Santeramo, Fabio Gaetano & Nardone, Gianluca, 2015. "Trade competitiveness in table grapes: a global view," MPRA Paper 70931, University Library of Munich, Germany.
    9. Fabio Gaetano Santeramo, 2015. "Price Transmission in the European Tomatoes and Cauliflowers Sectors," Agribusiness, John Wiley & Sons, Ltd., vol. 31(3), pages 399-413, June.
    10. Unknown, 2014. "The new EU agricultural policy - continuation or revolution?," Multiannual Program Reports 179498, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    11. Santeramo, Fabio Gaetano & Cioffi, Antonio & Vitale, Cosimo Damiano, 2014. "A Threshold-Var Approach To Assess The Efficacy Of The Eu Import Regime," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 0(Number 1), pages 1-12, January.
    12. Matthews, Alan & Salvatici, Luca & Scoppola, Margherita, 2017. "Trade Impacts of Agricultural Support in the EU," Commissioned Papers 252767, International Agricultural Trade Research Consortium.
    13. Nadia Shabnam & Fabio Gaetano Santeramo & Zahid Asghar & Antonio Seccia, 2016. "The Impact of Food Price Crises on the Demand for Nutrients in Pakistan," Journal of South Asian Development, , vol. 11(3), pages 305-327, December.
    14. Taghouti, Ibtissem & Martinez-Gomez, Victor & Coque, José María Garcia Alvarez, 2015. "Exploring Eu Food Safety Notifications On Agro-Food Imports: Are Mediterranean Partner Countries Discriminated?," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 0(Number 2), pages 1-15, April.
    15. Santeramo, Fabio Gaetano & von Cramon-Taubadel, Stephan, 2016. "On Perishability and Vertical Price Transmission: empirical evidences from Italy," MPRA Paper 72735, University Library of Munich, Germany.

    More about this item

    Keywords

    Trade policy; Non-tariff barrier; Entry price system; EU agriculture; Fruits and vegetables; TVAR;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • 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

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