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Adding mirror clauses within the European Green Deal: Hype or hope?

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  • Alexandre Gohin
  • Alan Matthews

Abstract

The proposed reductions in farm input uses foreseen in the European Green Deal may penalize European farm production while increasing environmental leakages to foreign countries where production may expand. These expected impacts have led to calls for a more restrictive trade policy based on mirror clauses. This paper considers as a case study a potential ban on glyphosate in vegetable and fruits production. We develop an original computable general equilibrium model with endogenous adoption of new European production standards by foreign producers on currently latent markets. We find in our case study that adding mirror clauses to the Green Deal marginally improves European farm income and the global environmental footprint of food. We find that foreign producers as a whole can gain from these clauses and not lose as in a standard analysis. European households support these clauses by paying higher food bills while consuming vegetables and fruits produced without glyphosate.

Suggested Citation

  • Alexandre Gohin & Alan Matthews, 2024. "Adding mirror clauses within the European Green Deal: Hype or hope?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 46(3), pages 1103-1126, September.
    • Handle: RePEc:wly:apecpp:v:46:y:2024:i:3:p:1103-1126
    DOI: 10.1002/aepp.13434
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    References listed on IDEAS

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    1. Beckman, Jayson & Ivanic, Maros & Jelliffe, Jeremy L & Baquedano, Felix G & Scott, Sara G, 2020. "Economic and Food Security Impacts of Agricultural Input Reduction Under the European Union Green Deal’s Farm to Fork and Biodiversity Strategies," Economic Brief 327231, United States Department of Agriculture, Economic Research Service.
    2. Maksym Chepeliev & Alla Golub & Thomas Hertel & Wajiha Saeed & Jayson Beckma, 2021. "Disaggregating the Vegetables, Fruits and Nuts Sector to the Tariff Line in the GTAP-HS Framework," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 6(1), pages 82-127, June.
    3. Beckman, Jayson & Burfisher, Mary & Mitchell, Lorraine & Arita, Shawn, 2021. "Hidden obstacles to trade: The case of the EU’s Ban on beef hormones," Journal of Policy Modeling, Elsevier, vol. 43(6), pages 1332-1343.
    4. Pascale Bazoche & Pierre Combris & Eric Giraud-Héraud & Alexandra Seabra Pinto & Frank Bunte & Efthimia Tsakiridou, 2014. "Willingness to pay for pesticide reduction in the EU: nothing but organic?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 41(1), pages 87-109, February.
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