An Empirical Assessment of Agricultural Trade Policies in the Mediterranean Basin - Regional Effects on the EU Member States
The objective of this paper is to provide deeper insights on the impacts of agricultural policy reforms in the Mediterranean basin focusing on regional effects in the EU. The empirical analysis has been undertaken using the partial equilibrium multi commodity, multi region world trade model AGRISIM. The simulation results indicated that the CAP Reform for the Mediterranean commodities seems to affect only the EU Mediterranean Member states and the enlargement with Bulgaria and Romania only this two countries. Moreover the impacts on the markets of typical Mediterranean commodities included in the modelling exercise are limited. The supply in the EU changes mainly for those commodities that are of high protection as beef, whereas the demand increases being highest for beef. The prices adjust to the world market prices resulting thus to negative changes for the producer's surplus, but to positive for the consumer's surplus. The effects for the EU budget are also positive and overall welfare gains are to be expected.
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