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The Impact of Preferential Trade Arrangements on EU Imports from Developing Countries: The Case of Fresh Cut Flowers

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  • Andrew Muhammad
  • William A. Amponsah
  • Jennifer H. Dennis

Abstract

This study examines the effects that the Generalized System of Preferences schemes for developing countries (GSP + ) have on European Union (EU) demand for imported cut flowers. Without GSP + , a tariff would be applied to flowers from Colombia and Ecuador. Results show that Colombian carnation prices have a negative effect on EU flower expenditures, resulting in preferential treatment for Colombia being mostly trade-creating. When a tariff is applied to Colombia, imports of Colombian carnations and Kenyan roses fell by 7.3% and 1.9%, respectively, and other flowers from Ecuador and Israel fell by 1.9% and 1.8%, respectively. Total EU flower imports fell by 1.4%. Copyright 2010, Oxford University Press.

Suggested Citation

  • Andrew Muhammad & William A. Amponsah & Jennifer H. Dennis, 2010. "The Impact of Preferential Trade Arrangements on EU Imports from Developing Countries: The Case of Fresh Cut Flowers," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(2), pages 254-274.
  • Handle: RePEc:oup:apecpp:v:32:y:2010:i:2:p:254-274
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    File URL: http://hdl.handle.net/10.1093/aepp/ppp008
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    Cited by:

    1. Wang, Xiaojin & Reed, Michael, 2014. "Estimation of U.S. Demand for Imported Shrimp by Country: A Two-stage Differential Production Approach," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162459, Southern Agricultural Economics Association.
    2. Sun, Changyou, 2015. "An investigation of China's import demand for wood pulp and wastepaper," Forest Policy and Economics, Elsevier, vol. 61(C), pages 113-121.
    3. Steen, Marie, 2014. "Measuring Price–Quantity Relationships in the Dutch Flower Market," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 46(02), May.

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