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Dispatches From The Tomato Wars: Spillover Effects Of Trade Barriers

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  • Baylis, Katherine R.

Abstract

Most trade barriers are, by their very nature, bi-lateral. Since most countries trade with more than one country in more than one product, these bilateral measures can have spillover effects, changing trading patterns among other countries and products. This paper looks at the effect of a bilateral trade barrier on trade flows within a three-country free-trading area. Specifically, this paper examines the trade distortion effects of the 1996 voluntary export restraint (VER) placed on tomato exports from Mexico to the United States. Has Mexico shifted its exports from the Unites States to Canada, and has Canada increased its exports to the United States? Has the VER caused Mexico to divert fresh tomatoes to the processing sector?
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Suggested Citation

  • Baylis, Katherine R., 2003. "Dispatches From The Tomato Wars: Spillover Effects Of Trade Barriers," Working Papers 15850, University of British Columbia, Food and Resource Economics.
  • Handle: RePEc:ags:ubcwps:15850
    DOI: 10.22004/ag.econ.15850
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    File URL: https://ageconsearch.umn.edu/record/15850/files/wp030006.pdf
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    References listed on IDEAS

    as
    1. John C. Ries, 1993. "Voluntary Export Restraints, Profits, and Quality Adjustment," Canadian Journal of Economics, Canadian Economics Association, vol. 26(3), pages 688-706, August.
    2. Chan, Kenneth S., 1993. "On trade negotiation and trade diversification : Evidence from Canadian clothing import quotas," Journal of Development Economics, Elsevier, vol. 40(2), pages 361-370, April.
    3. Jans, Ivette & Wall, Howard J & Hariharan, Govind, 1995. "Protectionist Reputations and the Threat of Voluntary Export Restraint," Review of International Economics, Wiley Blackwell, vol. 3(2), pages 199-208, June.
    4. Calvin, Linda & Barrios, Veronica, 1999. "Marketing Winter Vegetables From Mexico," Journal of Food Distribution Research, Food Distribution Research Society, vol. 30(1), pages 1-13, March.
    5. Jaime de Melo & L Alan Winters, 2015. "Do exporters gain from VERs?," World Scientific Book Chapters, in: Non-Tariff Barriers, Regionalism and Poverty Essays in Applied International Trade Analysis, chapter 3, pages 49-67, World Scientific Publishing Co. Pte. Ltd..
    6. Ohashi, Hiroshi, 2002. "Anticipatory effects of voluntary export restraints: a study of home video cassette recorders market, 1978-86," Journal of International Economics, Elsevier, vol. 57(1), pages 83-105, June.
    7. Maury Bredahl & Andrew Schmitz & Jimmye S. Hillman, 1987. "Rent Seeking in International Trade: The Great Tomato War," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(1), pages 1-10.
    8. Syropoulos, Constantinos, 1996. "On Pareto-improving voluntary export restraints," International Journal of Industrial Organization, Elsevier, vol. 14(1), pages 71-84.
    9. repec:fth:geneec:93.11 is not listed on IDEAS
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    Cited by:

    1. Perez, Maria P. & Ribera, Luis A. & Palma, Marco A., 2017. "Effects of trade and agricultural policies on the structure of the U.S. tomato industry," Food Policy, Elsevier, vol. 69(C), pages 123-134.
    2. Kosse, Elijah & Devadoss, Stephen, 2016. "Welfare Analysis of the U.S.-Mexican Tomato Suspension Agreement," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252726, Southern Agricultural Economics Association.

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