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Import Tariffs, Domestic Distortions and 'Market Linkages': Rebalancing EU Cereal Protection?

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  • Le Mouel, Chantal

Abstract

This paper demonstrates that, in a two-country three-good general equilibrium model, both complementarity between import and export goods and the presence of an export subsidy at home make an import tariff more likely to be welfare decreasing for the active country. The welfare efficiency of EU import tariffs on corn gluten feed (CGF) or soymeal is then examined, emphasising the role of the CAP reform in altering market linkages by potentially making grains and these ingredients more complementary in feed rations. An import tariff on CGF would be welfare enhancing for the EU, whereas the CAP reform tends to rule out the welfare efficiency of a tariff on soymeal. Copyright 1995 by Oxford University Press.

Suggested Citation

  • Le Mouel, Chantal, 1995. "Import Tariffs, Domestic Distortions and 'Market Linkages': Rebalancing EU Cereal Protection?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 22(4), pages 447-467.
    • Handle: RePEc:oup:erevae:v:22:y:1995:i:4:p:447-67
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