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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 Transatlantic Trade and Investment Partnership 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 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 nearly 60% if tariffs are removed and MRLs are mutually recognized or harmonized to the Codex levels. [EconLit citations: Q17, F15]

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  • Bo Xiong & John C. Beghin, 2018. "TTIP and agricultural trade: The case of tariff elimination and pesticide policy cooperation," Agribusiness, John Wiley & Sons, Ltd., vol. 34(3), pages 495-508, June.
    • Handle: RePEc:wly:agribz:v:34:y:2018:i:3:p:495-508
    DOI: 10.1002/agr.21555
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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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    3. Bo Xiong & John Beghin, 2017. "Does European aflatoxin regulation hurt groundnut exporters from Africa?," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 16, pages 287-307, World Scientific Publishing Co. Pte. Ltd..
    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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    13. Alemanno , Alberto & Capodieci , Giuseppe, 2012. "Testing the Limits of Global Food Governance: The Case of Ractopamine," HEC Research Papers Series 967, HEC Paris.
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    15. John C. Beghin & Bo Xiong, 2016. "Economic Effects of Standard-Like Nontariff Measures: Analytical and Methodological Dimensions," Center for Agricultural and Rural Development (CARD) Publications 16-wp569, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    16. Beckman, Jayson & Arita, Shawn & Mitchell, Lorraine & Burfisher, Mary, 2015. "Agriculture in the Transatlantic Trade and Investment Partnership: Tariffs, Tariff-Rate Quotas, and Non-Tariff Measures," Economic Research Report 212886, United States Department of Agriculture, Economic Research Service.
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    1. 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.
    2. 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.

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    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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