Abstract
The complexity of the Euro-Mediterranean trade liberalisation is difficult to represent in trade models because of the range of instruments still constraining trade as well as the special characteristics of the major traded fruits and vegetables (product differentiation and seasonality). This paper proposes a trade model to assess the impact of trade liberalisation in the fresh tomato market, taking into account trade measures that are defined on a seasonal basis, such as tariff-rate quotas and entry prices. Simulations are carried out in monthly periods. The model considers imports from different sources as imperfect substitutes, following a non-linear Armington-type approach. Different policy scenarios have been run, considering various types of changes in the trade policy for tomatoes, changes that would arise from a new multilateral trade agreement. Model results indicate that, as far as EU producers are concerned, considering tomatoes as a sensitive product would be the less dramatic scenario. By contrast, entry price elimination would have noteworthy consequences on EU producers.
Highlights
The analysis of Euro-Mediterranean agricultural trade liberalisation is a growing area of research
This paper proposes a trade model to evaluate the impact of European Union (EU) liberalisation on horticultural imports
Using average data for the years 2005-2006, Moroccan and rest of the world (ROW) Standard Import Value (SIV) were compared to the entry prices (EP) level, and the actual Moroccan imports were compared to the tariff-rate quotas (TRQ).8
Summary
The analysis of Euro-Mediterranean agricultural trade liberalisation is a growing area of research. Complexity is a word that defines the bilateral trade liberalisation process in the region. This complexity is difficult to represent in a trade model because of (i) the variety of instruments constraining bilateral agricultural trade; and (ii) the special nature of the most important traded goods (product differentiation and seasonality). The commercial integration process among the EU and a number of countries from the Mediterranean basin has been progressing, within the framework launched in the 1995 Barcelona Conference (Garcia-AlvarezCoque, 2002). Within this framework, the EU holds preferential trade agreements (PTA) with its Mediterranean neighbour countries – so-called Southern Mediterranean Countries (SMC). The Barcelona Ministerial declaration in November 2005 foresees the progressive liberalisation of trade in agriculture, but “with a possible selected number of exceptions and timetables for gradual and asymmetrical implementation”
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