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EU Trade Barriers in the Agri-food Sector: When Protection Breeds Dependence

Author

Listed:
  • Cadot, Olivier
  • Gallezot, Jacques
  • Suwa Eisenmann, Akiko

Abstract

This paper looks for firm-level evidence that high rates of protection breed concentration of firm activities into highly protected sectors, endogenously generating vested interests in the maintenance of protection. We combine data on the EU’s trade protection for food and agricultural products measured by ad-valorem equivalents (AVEs) with survey data on France’s agri-food sector to show that indeed, small and mid-size firms and cooperatives in that sector are heavily concentrated in product lines protected by tariff-rate quotas (TRQs) at high rates. Those firms and cooperatives can be expected to be at the forefront of resistance to multilateral tariff cuts, in particular in the meat and dairy sectors. Overcoming their resistance would call for targeted adjustment assistance.

Suggested Citation

  • Cadot, Olivier & Gallezot, Jacques & Suwa Eisenmann, Akiko, 2009. "EU Trade Barriers in the Agri-food Sector: When Protection Breeds Dependence," CEPR Discussion Papers 7219, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:7219
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    References listed on IDEAS

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    1. Joseph Francois & Will Martin, 2003. "Formula Approaches for Market Access Negotiations," The World Economy, Wiley Blackwell, vol. 26(1), pages 1-28, January.
    2. Will Martin & Kym Anderson, 2006. "Agricultural Trade Reform and the Doha Development Agenda," World Bank Publications, The World Bank, number 6889.
    3. Mohamed Hedi Bchir & Sébastien Jean & David Laborde, 2006. "Binding Overhang and Tariff-Cutting Formulas," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(2), pages 207-232, July.
    4. Jan Pokrivcak & Christophe Crombez & Johan F. M. Swinnen, 2006. "The status quo bias and reform of the Common Agricultural Policy: impact of voting rules, the European Commission and external changes," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 33(4), pages 562-590, December.
    5. Anania, Giovanni, 2007. "Multilateral Negotiations, Preferential Trade Agreements and the CAP. What's Ahead?," Working Papers 7283, TRADEAG - Agricultural Trade Agreements.
    6. L.P. Mahé & T.L. Roe, 1996. "The Political Economy of Reforming the 1992 CAP Reform," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1314-1323.
    7. Jean, Sebastien & Laborde, David & Martin, William J., 2005. "Sensitive Products: Selection and Implications for Agricultural Trade Negotiations," Working Papers 18860, TRADEAG - Agricultural Trade Agreements.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    agriculture; concentration; trade protection;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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