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Trade composition effects of the EU tariff structure: beef imports from Mercosur

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  • Maria Priscila Ramos
  • Jean-Christophe Bureau
  • Luca Salvatici

Abstract

The EU tariff schedule includes many specific and composite tariffs as well as tariff-rate quotas (TRQs). Hence, different patterns of trade liberalisation might have different consequences for both producers and consumers through changes in the composition of trade. We illustrate the issues at stake in the beef sector, focusing on Mercosur exports to the EU. We model import demand for different qualities in the presence of TRQs and derive comparative static results showing the consequences of different patterns of bilateral and multilateral trade liberalisation. If the EU treats beef as a 'sensitive product' in a possible WTO Doha Round Agreement, imports would be lower, despite the accompanying TRQ expansion, than with larger tariff cuts. TRQ expansion would, however, increase the high-quality bias in beef imports and welfare losses, whereas a cut in the specific tariff would reduce this bias. Oxford University Press and Foundation for the European Review of Agricultural Economics 2010; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org, Oxford University Press.

Suggested Citation

  • Maria Priscila Ramos & Jean-Christophe Bureau & Luca Salvatici, 2010. "Trade composition effects of the EU tariff structure: beef imports from Mercosur," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 37(1), pages 1-26, March.
  • Handle: RePEc:oup:erevae:v:37:y:2010:i:1:p:1-26
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    File URL: http://hdl.handle.net/10.1093/erae/jbq007
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    Cited by:

    1. Krzyżanowski, Julian, 0. "Prospects and threats for EU agriculture and consumers resulting from the potential TTIP agreement," Problems of Agricultural Economics, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    2. Estrades, Carmen, 2012. "Is MERCOSUR’s External Agenda Pro-Poor?: An assessment of the European Union-MERCOSUR free-trade agreement on poverty in Uruguay applying MIRAGE," IFPRI discussion papers 1219, International Food Policy Research Institute (IFPRI).
    3. Charlotte Emlinger & Houssein Guimbard, 2013. "Per-Unit Duties: Friends or Foes of Developing Country Exporters?," Working Papers 2013-23, CEPII research center.
    4. Gouel, Christophe & Mitaritonna, Cristina & Ramos, Maria Priscila, 2011. "Sensitive products in the Doha negotiations: The case of European and Japanese market access," Economic Modelling, Elsevier, vol. 28(6), pages 2395-2403.
    5. Listorti, Giulia & Kempen, Markus & Girardin, Jean & Kranzlein, Tim, 2011. "Do Price Uncertainties Affect the Use of Policy Flexibilities? The Selection of Sensitive Products in WTO Agricultural Negotiations," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114381, European Association of Agricultural Economists.
    6. Margherita Scoppola, 2010. "The Liberalisation of Tariff Rate Quotas under Oligopolistic Competition," Journal of Agricultural Economics, Wiley Blackwell, vol. 61(3), pages 584-604.
    7. Curzi, Daniele & Olper, Alessandro, 2012. "Export behavior of Italian food firms: Does product quality matter?," Food Policy, Elsevier, vol. 37(5), pages 493-503.

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