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Relative Impact of the Norway-EU Salmon Agreement: A Midterm Assessment

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  • Kinnucan, Henry W.
  • Myrland, Oystein

Abstract

An agreement between Norway and the European Commission specifies an increase in the export tax on Norwegian salmon entering EU markets from 0.75% to 3.00% effective 1 July 1997. Further, Norway's exports are subject to a price floor and quantity ceiling, neither of which were binding over the evaluation period. Since the tax's proceeds are to be used by Norway to fund generic marketing of Atlantic salmon, it is possible that the agreement is winwin, i.e., benefits United Kingdom and Norwegian producers alike. To test this, we use an equilibrium displacement model to estimate the agreement's effects on prices, trade flows, and producer welfare. Results based on data through 1999 suggest the agreement is indeed win-win, but that currency realignments and feed quota policy can easily neutralize or obscure the effects.

Suggested Citation

  • Kinnucan, Henry W. & Myrland, Oystein, 2002. "Relative Impact of the Norway-EU Salmon Agreement: A Midterm Assessment," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24826, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae02:24826
    DOI: 10.22004/ag.econ.24826
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    Cited by:

    1. Misund, Bard, 2016. "Common and Fundamental Risk Factors in Shareholder Returns of Norwegian Salmon Producing Companies," UiS Working Papers in Economics and Finance 2016/17, University of Stavanger.
    2. Şişman, Muhammet Yunus, 2017. "An Economic Welfare Analysis Of Agricultural Subsidies And Inventory Holdings: An Application To The Hazelnut Industry1," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 5(4), October.
    3. Frank Asche & Atle G. Guttormsen & Tom Sebulonsen & Elin H. Sissener, 2005. "Competition between farmed and wild salmon: the Japanese salmon market," Agricultural Economics, International Association of Agricultural Economists, vol. 33(3), pages 333-340, November.
    4. Max Nielsen & Jos Smit & Jordi Guillen, 2009. "Market Integration of Fish in Europe," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(2), pages 367-385, June.
    5. Williams, Gary W. & Capps Jr., Oral, 2020. "Generic promotion of Norwegian seafood exports," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 23(3), August.
    6. Anderson, James L. & Asche, Frank & Garlock, Taryn, 2018. "Globalization and commoditization: The transformation of the seafood market," Journal of Commodity Markets, Elsevier, vol. 12(C), pages 2-8.
    7. Frank Asche & Shabbar Jaffry & Jessica Hartmann, 2007. "Price transmission and market integration: vertical and horizontal price linkages for salmon," Applied Economics, Taylor & Francis Journals, vol. 39(19), pages 2535-2545.
    8. Myrland, Oystein & Dong, Diansheng & Kaiser, Harry M., 2003. "Price and Quality Effects of Generic Advertising: The Case of Norwegian Salmon," Research Bulletins 122112, Cornell University, Department of Applied Economics and Management.
    9. Jones, Keithly G. & Harvey, David J. & Hahn, William F. & Muhammad, Andrew, 2008. "U.S. Demand for Source–Differentiated Shrimp: A Differential Approach," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(2), pages 1-13, August.
    10. Asche, Frank & Roll, Kristin H & Trollvik, Trine, 2009. "New aquaculture species. Entering the whitefish market," UiS Working Papers in Economics and Finance 2009/21, University of Stavanger.
    11. Asche, Frank & Larsen, Thomas A. & Smith, Martin D. & Sogn-Grundvåg, Geir & Young, James A., 2015. "Pricing of eco-labels with retailer heterogeneity," Food Policy, Elsevier, vol. 53(C), pages 82-93.
    12. Agyekum, Michael & Jolly, Curtis M., 2017. "Peanut trade and aflatoxin standards in Europe: Economic effects on trading countries," Journal of Policy Modeling, Elsevier, vol. 39(1), pages 114-128.
    13. Misund, Bård, 2018. "Common and fundamental risk factors in shareholder returns of Norwegian salmon producing companies," Journal of Commodity Markets, Elsevier, vol. 12(C), pages 19-30.
    14. Henry W. Kinnucan & Øystein Myrland, 2003. "Free-rider effects of generic advertising: The case of salmon," Agribusiness, John Wiley & Sons, Ltd., vol. 19(3), pages 315-324.
    15. Williams, Gary W. & Capps, Jr., Oral, 2022. "The apparent conflict of Norwegian pelagic fisheries management and Norwegian seafood council export promotion," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 25(3), February.

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