Multilateral trade liberalisation and Preference erosion: Effects on the agricultural sector of the EU's Mediterranean Partner Countries
This paper analyses preference erosion effects on the agricultural sector of the EU’s ten Mediterranean Partner Countries (MPCs). The modelling exercise is carried out with the partial equilibrium multi-commodity multi-region world trade model AGRISIM. The effects vary between the markets and depend mainly on the initial level of trade protection. Supposing that level of preferences granted to the MPCs by the EU remains as of 2001 then the effects are particularly distinguishable for high protected markets like beef in Turkey, milk and rice in Morocco and olive oil in all MPCs. Supposing that the free trade area with the EU is accomplished, then the impacts are evident mainly on beef, milk and sugar markets, where the prices among the preferential partners are much higher than the world market ones. The farmers are faced with lower supply and prices, which in turn reduce their income and their surplus, but to the benefit of the consumers and of the tax payers resulting to an increase of the overall welfare. Preference erosion effects on typical Mediterranean commodities such as olive oil, oranges and tomatoes are smoother when the free trade area is in force.
|Date of creation:||2008|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.eaae.org|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Minot, Nicholas & Chemingui, Mohamed & Thomas, Marcelle & Dewina, Reno & Orden, David, 2007. "Impact of trade liberalization on agriculture in the near East and North Africa:," IFPRI books, International Food Policy Research Institute (IFPRI), number Nenatrade:2007.
- Patricia Augier & Michael Gasiorek, 2003. "The welfare implications of trade liberalization between the Southern Mediterranean and the EU," Applied Economics, Taylor & Francis Journals, vol. 35(10), pages 1171-1190.
- Harrison, Glenn W. & Rutherford, Thomas F. & Tarr, David G., 1997.
"Economic implications for Turkey of a Customs Union with the European Union,"
European Economic Review,
Elsevier, vol. 41(3-5), pages 861-870, April.
- Harrison, Glenn W. & Rutherford, Thomas F. & Tarr, David G., 1996. "Economic implications for Turkey of a customs union with the European Union," Policy Research Working Paper Series 1599, The World Bank.
- Hosoe, Nobuhiro, 2001. "A general equilibrium analysis of Jordan's trade liberalization," Journal of Policy Modeling, Elsevier, vol. 23(6), pages 595-600, August.
- Rutherford, Thomas F. & Rutstrom, E. Elisabet & Tarr, David, 1997. "Morocco's free trade agreement with the EU: A quantitative assessment," Economic Modelling, Elsevier, vol. 14(2), pages 237-269, April.
- Joseph Francois & B. Hoekman & M. Manchin, 2005.
"Preference Erosion and Multilateral Trade Liberalization,"
The Institute for International Integration Studies Discussion Paper Series
- Joseph Francois & Bernard Hoekman & Miriam Manchin, 2006. "Preference Erosion and Multilateral Trade Liberalization," World Bank Economic Review, World Bank Group, vol. 20(2), pages 197-216.
- Francois, Joseph & Hoekman, Bernard & Manchin, Miriam, 2005. "Preference Erosion and Multilateral Trade Liberalization," CEPR Discussion Papers 5153, C.E.P.R. Discussion Papers.
- Francois, Joseph & Hoekman, Bernard & Manchin, Miriam, 2005. "Preference erosion and multilateral trade liberalization," Policy Research Working Paper Series 3730, The World Bank.
- Denise Eby Konan & Keith Maskus, 1997.
"Joint Trade Liberalization and Tax Reform in a Small Open Economy: The Case of Egypt,"
199703-R, University of Hawaii at Manoa, Department of Economics.
- Konan, Denise Eby & Maskus, Keith E., 2000. "Joint trade liberalization and tax reform in a small open economy: the case of Egypt," Journal of Development Economics, Elsevier, vol. 61(2), pages 365-392, April.
- Ravallion, Martin & Lokshin, Michael, 2004. "Gainers and losers from trade reform in Morocco," Policy Research Working Paper Series 3368, The World Bank.
- Chatti Rim, 2003. "A CGE Assessment of FTA Between Tunisia and the EU Under Oligopolistic Market Structures," Review of Middle East Economics and Finance, De Gruyter, vol. 1(2), pages 1-30, August.
- Piergiorgio Alessandri, 2000. "European and Euro-meditterranean Agreements: same simulation analysis on the effects of the EU trade policy," KITeS Working Papers 110, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jun 2000.
When requesting a correction, please mention this item's handle: RePEc:ags:eaae08:44177. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.