IDEAS home Printed from https://ideas.repec.org/p/ipt/iptwpa/jrc52733.html
   My bibliography  Save this paper

EU Agricultural Trade Relations with Asian Countries

Author

Listed:
  • David Abler
  • Martin Banse
  • Marijke Kuiper
  • Pim Roza
  • Federica Santuccio

Abstract

This report investigates the possible effects of a Free Trade Area between the European Union and its three main trading partners: India, South Korea and the Association of South East Asian Nations (ASEAN) countries, focusing on the agricultural sector. The report includes an analysis of the ongoing bilateral negotiations and bilateral trade flows based on trade policy (at tariff line level), comparative advantages assessment and a modeling analysis of the implications of preferential liberalization in both, a CGE (LEITAP, modified version of the GTAP model) and a partial equilibrium context (PEATSim model). Results show that the overall level of agri-food production in Asian countries is driven by income and population growth, main determinants of increase in demand particularly in India. Different degrees of liberalization in bilateral agricultural and food trade do not significantly affect the total amount of agricultural production in Asian countries and the EU, however, it leads to trade creation and trade diversion effects. Bilateral trade between EU and the Asian countries tend to increase (trade creation) whilst Asian exports to third countries tend to diminish (trade diversion). The implementation of the different policy options (partial and full liberalization) determines a decline in EU overall imports due to the prevailing effect of trade diversion over trade creation. ASEAN imports and export from/to the EU grow considerably under the liberalization scenarios determining a positive net trade of 22 billion euro for the agri-food sector. Under full liberalization scenario Indian agri-food exports to the EU grow by 4 billion reaching almost 6.3 billion . Indian agri-food imports grow even faster from 0.2 up to 19 billion . The value of South Korean agri-food exports to the EU grows from 46 million in the baseline to 4.9 billion under the full liberalization. Total European agri-food exports expand by almost 11% from partial to the full liberalisation scenario.

Suggested Citation

  • David Abler & Martin Banse & Marijke Kuiper & Pim Roza & Federica Santuccio, 2009. "EU Agricultural Trade Relations with Asian Countries," JRC Research Reports JRC52733, Joint Research Centre.
    • Handle: RePEc:ipt:iptwpa:jrc52733
    as

    Download full text from publisher

    File URL: https://publications.jrc.ec.europa.eu/repository/handle/JRC52733
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Oecd, 2005. "Regional Trading Arrangements and the Multilateral Trading System: Agriculture," OECD Trade Policy Papers 15, OECD Publishing.
    2. Grant, Jason H. & Hertel, Thomas W. & Rutherford, Thomas F., 2006. "Extending General Equilibrium to the Tariff Line: U.S. Dairy in the Doha Development Agenda," 2006 Annual meeting, July 23-26, Long Beach, CA 21409, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Joseph Francois & Hans Van Meijl & Frank Van Tongeren, 2005. "Trade liberalization in the Doha Development Round [Trade in Manufactures, the Outcome of the Uruguay Round and Developing Country Interests]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 20(42), pages 350-391.
    4. Huang, Hsin & van Tongeren, Frank & Dewbre, Joe Dewbre, Joe & van Meijl, Hans, 2004. "A New Representation of Agricultural Production Technology in GTAP," Conference papers 330233, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. M. Bruna Zolin & Utai Uprasen, 2018. "Trade creation and diversion: effects of EU enlargement on agricultural and food products and selected Asian countries," Asia Europe Journal, Springer, vol. 16(4), pages 351-373, December.

    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. Narayanan, Badri G. & Hertel, Thomas W. & Horridge, J. Mark, 2010. "Disaggregated data and trade policy analysis: The value of linking partial and general equilibrium models," Economic Modelling, Elsevier, vol. 27(3), pages 755-766, May.
    2. Narayana, Badri G. & Hertel, Thomas W. & Horridge, J. Mark, 2010. "Linking Partial and General Equilibrium Models: A GTAP Application Using TASTE," Technical Papers 283427, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Cassoni, Adriana & Flores, Manuel, 2008. "Methodological shortcomings in estimating Armington elasticities," Conference papers 331813, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Laborde, David & Martin, Will & van der Mensbrugghe, Dominique, 2008. "Implications of the 2008 Doha Draft Agricultural and NAMA Market Access Modalities for Developing Countries," Conference papers 331719, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Banse, Martin & Helming, John F.M. & van Meijl, Hans & Nowicki, Peter, 2008. "SCENAR2020: Future of European Agriculture under Different Policy Options, the economic modelling framework," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6593, European Association of Agricultural Economists.
    6. Ruslana Rachel PALATNIK, 2008. "Climate Change Assessment and Agriculture in General Equilibrium Models: Alternative Modeling Strategies," EcoMod2008 23800101, EcoMod.
    7. Karplus, Valerie J. & Paltsev, Sergey & Babiker, Mustafa & Reilly, John M., 2013. "Should a vehicle fuel economy standard be combined with an economy-wide greenhouse gas emissions constraint? Implications for energy and climate policy in the United States," Energy Economics, Elsevier, vol. 36(C), pages 322-333.
    8. Anderson, Kym & Valenzuela, Ernesto & van der Mensbrugghe, Dominique, 2009. "Welfare and Poverty Effects of Global Agricultural and Trade Policies Using the Linkage Model," Agricultural Distortions Working Paper Series 52785, World Bank.
    9. Bureau, Jean-Christophe & Jean, Sebastien & Matthews, Alan, 2006. "The Consequences of Agricultural Trade Liberalization for Developing Countries," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25471, International Association of Agricultural Economists.
    10. Persson, Maria, 2008. "Trade Facilitation and the Extensive and Intensive Margins of Trade," Working Papers 2008:13, Lund University, Department of Economics.
    11. Yvan Decreux & Lionel Fontagné, 2013. "What Did Happen in the DDA? Quantifying the Role of Negotiation Modalities," Working Papers 2013-38, CEPII research center.
    12. repec:wsr:wpaper:y:2008:i:014 is not listed on IDEAS
    13. Fukushima, Hiroyuki & Abe, Masahiro & Shibasaki, Ryuichi & Alves, Lucas & Takada, Yuki & Onodera, Hitoshi & Furuichi, Masahiko, 2022. "Analysis of Future International Trade and Logistics in Africa: Considering Major Risks and Opportunities in the Post COVID-19 World," Conference papers 333398, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    14. Will Martin & Kym Anderson, 2007. "The Doha agenda and agricultural trade reform: the role of economic analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 77-87, December.
    15. Schmitz, Christoph & van Meijl, Hans & Kyle, Page & Fujimori, Shinichiro & Gurgel, Angelo & Havlik, Petr & d'Croz, Daniel Mason & Popp, Alexander & Sands, Ron & Tabeau, Andrzej & van der Mensbrugghe, , 2013. "An agro-economic model comparison of cropland change until 2050," Conference papers 332351, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    16. Verikios, George, 2009. "Modelling the world wool market: A hybrid approach," Economic Modelling, Elsevier, vol. 26(2), pages 418-431, March.
    17. Arjan Lejour & Paul Veenendaal & Gerard Verweij & Nico van Leeuwen, 2006. "Worldscan; a model for international economic policy analysis," CPB Document 111.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    18. Cretegny, Laurent, 2006. "Liberalizing Services in Switzerland and with the European Union," Conference papers 331543, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    19. Estrades, Carmen & Traore, Fousseini & Djiofack Zebaze, Calvin & Cardozo, Adriana, 2015. "DR-CAFTA Agreement and liberalization of trade in services: Evidence from Costa Rica," Conference papers 332581, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    20. Fontagné, Lionel & Foure, Jean, 2016. "Is Trade Facilitation a Free Lunch? A General Equilibrium Approach," Conference papers 332757, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    21. Laborde, David & Valin, Hugo, 2011. "Assessing the EU biofuel land use change effects: estimates with the MIRAGE-BioF model and uncertainty," Conference papers 332061, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

    More about this item

    Keywords

    agriculture; asia;

    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:ipt:iptwpa:jrc52733. 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: Publication Officer (email available below). General contact details of provider: https://edirc.repec.org/data/ipjrces.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.