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Agriculture in the Transatlantic Trade and Investment Partnership: Tariffs, Tariff-Rate Quotas, and Non-Tariff Measures

Author

Listed:
  • Beckman, Jayson
  • Arita, Shawn
  • Mitchell, Lorraine
  • Burfisher, Mary

Abstract

The proposed Transatlantic Trade and Investment Partnership (T-TIP) between the United States and the European Union (EU) aims to address several important barriers facing agricultural trade, including tariffs, tariff-rate quotas (TRQs), and non-tariff measures (NTMs). Estimated ad valorem tariff equivalents of tariffs/TRQs and NTMs currently in place are as high as 120 percent, significantly limiting trade between the two regions. This study uses model simulations to assess the effects of T-TIP on agriculture under three broad scenarios: complete removal of tariffs and TRQs; elimination of select NTMs along with tariffs and TRQs; and a lowering of the willingness of consumers to purchase imported goods previously limited by NTMs. Results of all scenarios suggest an increase in U.S.-EU agricultural trade from T-TIP, benefiting both regions. While the United States realizes a relative increase in agricultural exports, the EU benefits from lower import prices and larger macroeconomic gains than the United States. The estimated annual increase in U.S.-EU agricultural trade ranges from $6.3 billion to $11.6 billion when compared with the 2011 base year.

Suggested Citation

  • Beckman, Jayson & Arita, Shawn & Mitchell, Lorraine & Burfisher, Mary, 2015. "Agriculture in the Transatlantic Trade and Investment Partnership: Tariffs, Tariff-Rate Quotas, and Non-Tariff Measures," Economic Research Report 212886, United States Department of Agriculture, Economic Research Service.
  • Handle: RePEc:ags:uersrr:212886
    DOI: 10.22004/ag.econ.212886
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    Cited by:

    1. John C. Beghin & Jean-Christophe Bureau & Alexandre Gohin, 2017. "The Impact of an EU–US Transatlantic Trade and Investment Partnership Agreement on Biofuel and Feedstock Markets," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(2), pages 321-344, June.
    2. David Karemera & Bo Xiong & Louis Whitesides, 2020. "A State‐Level Analysis of the Impact of a U.S.‐EU Harmonization of Food Safety Standards on U.S. Exports of Fruits and Vegetables," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(4), pages 856-869, December.
    3. Bo Xiong & John C. Beghin, 2018. "TTIP and agricultural trade: The case of tariff elimination and pesticide policy cooperation," Agribusiness, John Wiley & Sons, Ltd., vol. 34(3), pages 495-508, June.
    4. Cororaton, Caesar B. & Orden, David, 2016. "Potential Economic Effects of the Reduction in Agricultural and Nonagricultural Trade Barriers in the Transatlantic and Investment Partnership," Proceedings Issues, 2016: Climate Change and International Agricultural Trade in the Aftermath of COP21, December 11-13, 2016, Scottsdale, Arizona 252425, International Agricultural Trade Research Consortium.
    5. Beckman, Jayson & Sands, Ronald D. & Riddle, Anne A. & Lee, Tani & Walloga, Jacob M., 2017. "International Trade and Deforestation: Potential Policy Effects via a Global Economic Model," Economic Research Report 262185, United States Department of Agriculture, Economic Research Service.
    6. Agnieszka Poczta-Wajda, & Agnieszka Sapa, 2017. "Potential Trade Effects Of Tariff Liberalization Under The Transatlantic Trade And Investment Partnership (Ttip) For The Eu Agri-Food Sector," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 44(2), June.
    7. Matthews, Alan & Salvatici, Luca & Scoppola, Margherita, 2017. "Trade Impacts of Agricultural Support in the EU," Commissioned Papers 252767, International Agricultural Trade Research Consortium.
    8. Jayson Beckman & Steven Zahniser, 2018. "The effects on intraregional agricultural trade of ending NAFTA's market access provisions," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(4), pages 599-612, December.

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    Keywords

    Agribusiness; Agricultural and Food Policy; International Relations/Trade; Livestock Production/Industries;
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