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Assessing Euro-Med trade preferences: the case of entry price reduction

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  • Martinez-Gomez, Victor

Abstract

The EU protects some of its fruits and vegetables through the entry price system. This system consists on a two-tiered tariff, with high-priced exports paying an ad valorem tariff, whereas low-priced exports pay also a supplementary specific tariff. The breaking point between high and low export prices is the entry price level decided by the EU, generally the same level for all third countries. In a few cases, some Southern Mediterranean partners of the EU have agreed a reduced entry price for their exports, together with the more common ad valorem tariff reduction. Among the indicators used for gauge the value of preferences, there is no one devoted to this case of reduced entry price, hence we develop a new indicator that allows to split which part of the preferential gains corresponds to the entry price reduction and which part corresponds to the “usual” ad valorem tariff reduction. We apply this methodology to Moroccan clementines trade flows, with two main findings: 1) The entry price reduction ranges up to 39% of the economic value of preferences in some months; 2) Morocco is not maximizing the gains due to this reduction, and could take some trade and policy lessons, mainly trying to better fit to the concession or, if impossible, use it as negotiating capital in future reviews of the agreement.

Suggested Citation

  • Martinez-Gomez, Victor, 2007. "Assessing Euro-Med trade preferences: the case of entry price reduction," MPRA Paper 1865, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:1865
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    References listed on IDEAS

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    1. Swinbank, Alan & Ritson, Christopher, 1995. "The impact of the GATT agreement on EU fruit and vegetable policy," Food Policy, Elsevier, vol. 20(4), pages 339-357, August.
    2. Yamazaki, Fumiko, 1996. "Potential erosion of trade preferences in agricultural products," Food Policy, Elsevier, vol. 21(4-5), pages 409-417.
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    Cited by:

    1. Goetz, Linde & Grethe, Harald, 2009. "The EU entry price system for fresh fruits and vegetables - Paper tiger or powerful market barrier?," Food Policy, Elsevier, vol. 34(1), pages 81-93, February.
    2. Goetz, Linde & Grethe, Harald, 2007. "The Relevance of the EU Entry Price System for Imports of Fresh Fruits and Vegetables," Working Papers 7114, International Agricultural Trade Research Consortium.
    3. Emlinger, Charlotte & Chevassus-Lozza, Emmanuelle & Jacquet, Florence, 2010. "Fruit and vegetable access to EU markets: Dissecting tariffs faced by Mediterranean countries," Food Policy, Elsevier, vol. 35(6), pages 599-611, December.
    4. Martinez-Gomez, Victor, 2008. "Current preferences of Southern Mediterranean Countries and their erosion after variations of the entry price system," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44157, European Association of Agricultural Economists.
    5. Goetz, Linde & Grethe, Harald, 2008. "How effective is the EU Entry Price System for Fresh Fruits and Vegetables?," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44063, European Association of Agricultural Economists.

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    More about this item

    Keywords

    Euro-Mediterranean Trade; trade preferences; fruits and vegetables; entry price regime;
    All these keywords.

    JEL classification:

    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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