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TTIP and Agricultural Trade: The Case of Tariff Elimination and Pesticide Policy Cooperation

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  • Bo Xiong
  • John C. Beghin

Abstract

A possible Trans-Atlantic Trade and Investment Partnership (TTIP) agreement will further integrate agricultural markets between the United States and the European Union. The elimination of tariffs and cooperation on sanitary and phytosanitary measures will promote cross-Atlantic trade. We empirically estimate the impacts of tariffs and Maximum Residue Limits (MRLs) on trade in plant products between the two partners. Furthermore, we simulate trade expansions under plausible negotiation outcomes. We find that a TTIP agreement promotes cross-Atlantic trade in plant products, in both directions, by over 60% if tariffs are removed and MRLs are mutually recognized or harmonized to Codex levels.

Suggested Citation

  • Bo Xiong & John C. Beghin, 2016. "TTIP and Agricultural Trade: The Case of Tariff Elimination and Pesticide Policy Cooperation," Center for Agricultural and Rural Development (CARD) Publications 16-wp566, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    • Handle: RePEc:ias:cpaper:16-wp566
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    1. Caesar, Cororaton & David, Orden, 2016. "Potential Economic Effects of the Reduction in Agricultural and Nonagricultural Trade Barriers in the Transatlantic Trade and Investment Partnership," MPRA Paper 74773, University Library of Munich, Germany, revised 27 Oct 2016.
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    4. Stéphan Marette & John Beghin, 2017. "Are Standards Always Protectionist?," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 11, pages 179-192, World Scientific Publishing Co. Pte. Ltd..
    5. 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.
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    8. 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.
    9. Bo Xiong & John Beghin, 2017. "Disentangling Demand-Enhancing And Trade-Cost Effects Of Maximum Residue Regulations," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 6, pages 105-108, World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. 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.
    2. 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.

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    More about this item

    Keywords

    Trans-Atlantic Trade and Investment Partnership; TTIP; maximum residue limit; MRL; sanitary and phytosanitary measures; tariff; trade agreement; NTM JEL: Q17; F15;
    All these keywords.

    JEL classification:

    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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