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

  • 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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File URL: http://purl.umn.edu/10098
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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
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Handle: RePEc:ags:eaae98:10098
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  1. Chen, Natalie, 2002. "Intra-national versus International Trade in the European Union: Why do National Borders Matter?," CEPR Discussion Papers 3407, C.E.P.R. Discussion Papers.
  2. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  3. James E. Anderson & Eric van Wincoop, 2001. "Gravity with Gravitas: A Solution to the Border Puzzle," NBER Working Papers 8079, National Bureau of Economic Research, Inc.
  4. de Sousa, J. & Mayer, T. & Zignago, S., 2011. "Market access in global and regional trade," Working papers 358, Banque de France.
  5. Keith Head & Thierry Mayer, 2004. "The Empirics of Agglomeration and Trade," Sciences Po publications info:hdl:2441/10191, Sciences Po.
  6. 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.
  7. Richard Nahuis, 2002. "One size fits all? Accession to the internal market; an industry level assessment of EU enlargement," CPB Discussion Paper 14, CPB Netherlands Bureau for Economic Policy Analysis.
  8. James E. Anderson & Eric van Wincoop, 2004. "Trade Costs," NBER Working Papers 10480, National Bureau of Economic Research, Inc.
  9. 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.
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