IDEAS home Printed from https://ideas.repec.org/p/vua/wpaper/1998-12.html
   My bibliography  Save this paper

Welfare gains from liberalized banana trade and a new international banana agreement

Author

Listed:
  • Kox, Henk L.M.

    (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)

Abstract

The European Union import policy for bananas grants preferential trade access for ACP bananas and discriminates against bananas from other sources. It is shown that such trade discrimination cannot be defended by development-related motives. As a form of aid transfer to banana-exporting ACP countries, the EU import regime is highly inefficient. The effective value of financial transfers is low, while there are large associated welfare costs to domestic consumers and to non-preferred export countries. Liberalization of banana imports would create huge welfare gains which can easily be used to compensate potential losers. It is proposed that the compensation package is given the form of an International Banana Agreement. The presence of third-party gains from trade liberalization can be used to negotiate non-EU involvement in the international agreement. The agreement makes it possible to reconcile a commitment to free banana trade, promotion of ecological sustainability in banana production and promotion of socio-economic development interests of banana exporting countries.

Suggested Citation

  • Kox, Henk L.M., 1998. "Welfare gains from liberalized banana trade and a new international banana agreement," Serie Research Memoranda 0012, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    • Handle: RePEc:vua:wpaper:1998-12
    as

    Download full text from publisher

    File URL: http://degree.ubvu.vu.nl/repec/vua/wpaper/pdf/19980012.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Borrell, Brent & Maw-Cheng Yang, 1992. "EC Bananarama 1992 : the sequel - the EC Commission proposal," Policy Research Working Paper Series 958, The World Bank.
    2. Augustin Kwasi Fosu, 1996. "Primary Exports and Economic Growth in Developing Countries," The World Economy, Wiley Blackwell, vol. 19(4), pages 465-475, July.
    3. Alan V. Deardorff, 1994. "Third-Country Effects of a Discriminatory Tariff," The World Economy, Wiley Blackwell, vol. 17(1), pages 75-86, January.
    4. Hervé Guyomard & Catherine Laroche & Chantal Le Mouël, 1999. "An economic assessment of the Common Market Organization for bananas in the European Union," Agricultural Economics, International Association of Agricultural Economists, vol. 20(2), pages 105-120, March.
    5. World Bank, 1996. "World Development Report 1996," World Bank Publications - Books, The World Bank Group, number 5979, April.
    6. Satish Y. Deodhar & Ian M. Sheldon, 1995. "Is Foreign Trade (Im)Perfectly Competitive?: An Analysis Of The German Market For Banana Imports," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(3), pages 336-348, September.
    7. Robert Read, 1994. "The EC Internal Banana Market: The Issues and the Dilemma," The World Economy, Wiley Blackwell, vol. 17(2), pages 219-236, March.
    8. Whittaker, Gerald W. & Lin, Biing-Hwan & Vasavada, Utpal, 1995. "Restricting Pesticide Use: The Impact On Profitability By Farm Size," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(2), pages 1-11, December.
    9. David Kaimowitz, 1996. "The Political Economy of Environmental Policy Reform in Latin America," Development and Change, International Institute of Social Studies, vol. 27(3), pages 433-452, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hervé Guyomard & Chantal Le Mouël, 2003. "Tensions around a trade regime : the GATT/WTO banana story," Post-Print hal-01594084, HAL.
    2. Guyomard, Herve & Le Mouel, Chantal, 2003. "The New Banana Import Regime in the European Union: A Quantitative Assessment," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 4(2), pages 1-19.
    3. Carmen Florido & Ana Aldanondo & Marta Jacob, 2002. "Firm Behaviour and Interaction in the European Banana Market: 1960–1993," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(2), pages 319-344, July.
    4. Hervé Guyomard & Catherine Laroche & Chantal Le Mouël, 1999. "An economic assessment of the Common Market Organization for bananas in the European Union," Agricultural Economics, International Association of Agricultural Economists, vol. 20(2), pages 105-120, March.
    5. Satish Y. Deodhar & Ian M. Sheldon, 1995. "Is Foreign Trade (Im)Perfectly Competitive?: An Analysis Of The German Market For Banana Imports," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(3), pages 336-348, September.
    6. Deodhar, Satish Y. & Sheldon, Ian M., 1996. "Estimation Of Imperfect Competition In Food Marketing: A Dynamic Analysis Of The German Banana Market," Journal of Food Distribution Research, Food Distribution Research Society, vol. 27(3), pages 1-10, October.
    7. Borrell, Brent, 1997. "Policy-making in the EU: the bananarama story, the WTO and policy transparency," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 41(2), pages 1-14.
    8. Read, Robert, 2001. "The Anatomy of the EU-US WTO Banana Trade Dispute," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 2(2), pages 1-26.
    9. Anania, Giovanni & Scoppola, Margherita, 2014. "Modeling trade policies under alternative market structures," Journal of Policy Modeling, Elsevier, vol. 36(1), pages 185-206.
    10. Vesselin Mintchev & Venelin Boshnakov & Alexander Naydenov, 2010. "Sources of Income Inequality: Empirical Evidence from Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 39-64.
    11. Ghimire, Narishwar & Woodward, Richard T., 2013. "Under- and over-use of pesticides: An international analysis," Ecological Economics, Elsevier, vol. 89(C), pages 73-81.
    12. Naima Chrid & Sami Saafi & Mohamed Chakroun, 2021. "Export Upgrading and Economic Growth: a Panel Cointegration and Causality Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 811-841, June.
    13. Claessens, Constantijn A. & Djankov, Simeon & Joseph P. H. Fan & Lang, Larry H. P., 1998. "Diversification and efficiency of investment by East Asian corporations," Policy Research Working Paper Series 2033, The World Bank.
    14. Brannstrom, Christian, 2001. "Conservation-with-Development Models in Brazil's Agro-Pastoral Landscapes," World Development, Elsevier, vol. 29(8), pages 1345-1359, August.
    15. Gries, Thomas & Kraft, Manfred & Meierrieks, Daniel, 2009. "Linkages Between Financial Deepening, Trade Openness, and Economic Development: Causality Evidence from Sub-Saharan Africa," World Development, Elsevier, vol. 37(12), pages 1849-1860, December.
    16. Block, Steven A., 1999. "Agriculture and economic growth in Ethiopia: growth multipliers from a four-sector simulation model," Agricultural Economics, Blackwell, vol. 20(3), pages 241-252, May.
    17. Bob Sutcliffe & Andrew Glyn, 2019. "Measures of globalisation and their misinterpretation," Chapters, in: Jonathan Michie (ed.), The Handbook of Globalisation, Third Edition, chapter 4, pages 77-90, Edward Elgar Publishing.
    18. George Viksnins, 1998. "The East Asian model and the Baltic states," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 33(5), pages 238-244, September.
    19. Małgorzata Szczepaniak, 2024. "Examining the Determinants of Poland’s Middle Class Life Satisfaction," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 172(1), pages 191-218, March.
    20. Martin L. Weitzman, 1999. "Pricing the Limits to Growth from Minerals Depletion," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(2), pages 691-706.

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vua:wpaper:1998-12. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: R. Dam (email available below). General contact details of provider: https://edirc.repec.org/data/fewvunl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.