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EU market access for Mediterranean fruit and vegetables: A gravity model assessment

Listed author(s):
  • Emlinger, Charlotte
  • Lozza, Emmanuelle Chevassus
  • Jacquet, Florence

Since 1995, a liberalization process - the so- called Barcelona Process - has begun in the Mediterranean area. It aims at establishing a free trade area for 2010 in the Mediterranean Basin. For the moment the full liberalization concerns industrial product s trade whereas agriculture remains sensitive. Among agricultural product s, the fruit and vegetables (F&V) sector is essential for Mediterranean countries and the EU is their first trading partner. In this context, two questions arise: Firstly, to what extent protection influence trade for the med countries, compared to the other countries? Secondly, what would be the impacts of a greater liberalization on F&V trade between the EU and Mediterranean Countries? Our model, based on the new development s of gravity equation focuses on the difficulties faced by the Mediterranean countries to enter on the EU market, compared to the other EU partners, considering the relative impact of the different trade costs. It is estimated at the product level, in a sector with a huge specificity: some product s may be very perishable and thus particularly time sensitive. The Mediterranean basin appears as a highly heterogeneous country bloc. Beside the actual level of preferences allowed by the EU, two main elements vary according to the exporting country: its tariff sensitivity and its "non- tariff" trade resistance. Thus, with respect to the Euromed liberalization, the higher the tariff sensitivity the higher the impact of liberalization on trade and this impact can be limited by a high trade resistance (NTB, logistic constraints...).

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Paper provided by European Association of Agricultural Economists in its series 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece with number 10098.

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Date of creation: 2006
Handle: RePEc:ags:eaae98:10098
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  1. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
  2. de Sousa, José & Mayer, Thierry & Zignago, Soledad, 2012. "Market access in global and regional trade," Regional Science and Urban Economics, Elsevier, vol. 42(6), pages 1037-1052.
  3. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 691-751, September.
  4. Soloaga, Isidro & Alan Wintersb, L., 2001. "Regionalism in the nineties: what effect on trade?," The North American Journal of Economics and Finance, Elsevier, vol. 12(1), pages 1-29, March.
  5. Charlotte EMLINGER & Florence JACQUET & Michel PETIT, 2006. "LES ENJEUX DE LA LIB ÉRALISATION AGRICOLE DANS LA ZONE MÉDITERRANÉENNECIHEAM-IAM de Montpellier, UMR Moisa," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 23, pages 41-72.
  6. Chen, Natalie, 2004. "Intra-national versus international trade in the European Union: why do national borders matter?," Journal of International Economics, Elsevier, vol. 63(1), pages 93-118, May.
  7. Head, Keith & Mayer, Thierry, 2004. "The empirics of agglomeration and trade," Handbook of Regional and Urban Economics,in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 59, pages 2609-2669 Elsevier.
  8. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  9. Nahuis, Richard, 2004. "One size fits all?: Accession to the internal market; an industry-level assessment of EU enlargement," Journal of Policy Modeling, Elsevier, vol. 26(5), pages 571-586, July.
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