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Domestic Support and Border Measures for Processed Horticultural Products

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  • Bradley J. Rickard
  • Daniel A. Sumner

Abstract

In horticultural markets, trade barriers often apply to the processed products whereas domestic support applies to farm-produced raw commodities. Here we assess the effects of such trade barriers and domestic support by simulating the effects of policy reform on global processing tomato markets, which are faced with modest processed product tariffs and high domestic support in the European Union (EU). Both protection and EU subsidy drive down world welfare, but we find that reducing import tariffs for tomato products would yield greater effects on markets and larger welfare impacts outside Europe than would reductions in EU domestic support. Copyright 2008, Oxford University Press.

Suggested Citation

  • Bradley J. Rickard & Daniel A. Sumner, 2008. "Domestic Support and Border Measures for Processed Horticultural Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(1), pages 55-68.
    • Handle: RePEc:oup:ajagec:v:90:y:2008:i:1:p:55-68
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    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2007.01039.x
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    Citations

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    Cited by:

    1. Rickard, Bradley J. & Sumner, Daniel A., 2011. "Was there policy "reform"? Evolution of EU domestic support for processed fruits and vegetables," Food Policy, Elsevier, vol. 36(3), pages 438-449, June.
    2. Ahn, Byeong-il & Im, Jeong-bin, 2016. "An equilibrium displacement approach to analyzing the effects of tariff reduction on farmers' profits: The Korea-Chile FTA's effects on Korean grape producers," Economics Discussion Papers 2016-10, Kiel Institute for the World Economy (IfW Kiel).
    3. Sambucci, Olena & Sumner, Daniel A. & Goldstein, Robin, 2020. "Effect of taxes and costly regulations on the licensed and unlicensed cannabis markets," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304602, Agricultural and Applied Economics Association.
    4. Sengupta, Ushree & Roy, Saikat Sinha, 2011. "Behaviour of India’s Horticultural Exports: Does Price Competitiveness Play a Determining Role?," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 66(2), pages 1-12.
    5. Rickard, Bradley J. & Lei, Lei, 2010. "How important are sanitary and phytosanitary barriers in international markets for fresh fruit?," Working Papers 126974, Cornell University, Department of Applied Economics and Management.
    6. Lee, Hanbin & Sexton, Richard J. & Sumner, Daniel A., 2022. "Government Restrictions on Food Available to Consumers: Economics of Regulations that Limit Farming Practices for Products Sold within Jurisdictions, with Application to California’s 2022 Pork Rules," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322438, Agricultural and Applied Economics Association.
    7. Bo Xiong, 2017. "The implications of US punitive tariffs on Chinese tires for rubber exports from South-East Asia," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 22(4), pages 575-586, October.

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