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On the effects of EU trade policy: agricultural tariffs still matter

Author

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  • Maria Cipollina
  • Luca Salvatici

Abstract

We capitalise on the latest development in the empirical structural gravity literature to examine the question of whether and how much the European Union (EU) agricultural tariffs affect agricultural imports. We capture both the protectionist and preferential nature of EU trade policies by measuring the effects of multilateral, bilateral and unilateral agreements on international trade relative to intra-EU trade. The computation of bilateral protection and preference margins is used to determine which countries/sectors are most negatively/positively affected. On average, EU agricultural tariffs have decreased international trade by 14 per cent. We also find that EU preferences have been effective in promoting trade by about 10 per cent.

Suggested Citation

  • Maria Cipollina & Luca Salvatici, 2020. "On the effects of EU trade policy: agricultural tariffs still matter," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 47(4), pages 1367-1401.
    • Handle: RePEc:oup:erevae:v:47:y:2020:i:4:p:1367-1401.
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    File URL: http://hdl.handle.net/10.1093/erae/jbz053
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    Citations

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    Cited by:

    1. Mario Larch & Jeff Luckstead & Yoto V. Yotov, 2024. "Economic sanctions and agricultural trade," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(4), pages 1477-1517, August.
    2. Maria Cipollina & Luca Salvatici, 2022. "The Dark Matter of Bilateral Preferential Margins: An Assessment of the Effect of US Tariffs," Sustainability, MDPI, vol. 14(8), pages 1-16, April.
    3. William C. Ridley & Jeff Luckstead & Stephen Devadoss, 2024. "Impacts of tariffs and NTMs on beef, pork and poultry trade," Journal of Agricultural Economics, Wiley Blackwell, vol. 75(2), pages 546-572, June.
    4. Chen, Rui & Adu, Derick T. & Li, Wenying & Wilson, Norbert L.W., 2024. "Virtual water trade: Does bilateral tariff matter?," Ecological Economics, Elsevier, vol. 222(C).
    5. Amani Elobeid & Miguel Carriquiry & Jerome Dumortier & David Swenson & Dermot J. Hayes, 2021. "China‐U.S. trade dispute and its impact on global agricultural markets, the U.S. economy, and greenhouse gas emissions," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(3), pages 647-672, September.
    6. Xiao Hu & Kaifang Fu & Zhixiang Chen & Zhijiao Du, 2022. "Decision-Making of Transnational Supply Chain Considering Tariff and Third-Party Logistics Service," Mathematics, MDPI, vol. 10(5), pages 1-20, February.
    7. Maria Cipollina & Federica Demaria, 2020. "The Trade Effect of the EU’s Preference Margins and Non-Tariff Barriers," JRFM, MDPI, vol. 13(9), pages 1-20, September.
    8. Berger, Jurij & Brümmer, Bernhard & Fiankor, Dela-Dem & Kopp, Thomas, 2021. "Sugar market policies in the EU and international sugar trade," DARE Discussion Papers 2105, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    9. Mario Larch & Jeff Luckstead & Yoto V. Yotov, 2021. "Economic Sanctions and Agricultural Trade," CESifo Working Paper Series 9410, CESifo.
    10. Ridley, William & Luckstead, Jeff & Devadoss, Stephen, 2022. "Wine: The punching bag in trade retaliation," Food Policy, Elsevier, vol. 109(C).

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