Sweet and Sour Changes in Trade Regimes

Calì, Massimiliano; Nolte, Stephan; Cantore, Nicola

doi:10.1111/twec.12007

Cited by 6 publications

(9 citation statements)

References 19 publications

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“…This means that with the Armington approach, small import flows always stay small and zero import flows always stay zero (Calì et al . 2013).…”

Section: Discussionmentioning

confidence: 99%

“…A key extension compared to the last published version of the model (Calì et al . 2013) is a more detailed representation of tariff rate quotas that goes beyond the classical single‐origin, single‐destination approach. In addition to the classical country‐by‐country tariff rate quotas (Eqn ), Equations to also allow to limit exports of a single country to a group of countries (multi‐destination TRQs, Eqn ), exports of a group of countries to a single country (multi‐origin TRQs, Eqn ) and the trade volume between two country groups (multi‐origins–multi‐destination TRQs.…”

Section: Methodsmentioning

confidence: 99%

“…To our knowledge, so far only the studies of Nolte et al (2012) and Calì et al (2013) have investigated the trade effects of a complete elimination of the EU quota system. Both studies apply a stand-alone version of the spatial price equilibrium (SPE) model for the global sugar market first developed by Nolte (2008).…”

Section: Introductionmentioning

confidence: 99%

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Liberalising the EU sugar market: what are the effects on third countries?*

Haß¹

2022

Aus J Agri & Res Econ

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This paper examines the consequences of a liberalisation of the EU sugar policy on Australia and other third countries. Four scenarios are simulated showing the trade and production effects of a gradual phasing-out of EU domestic support measures and EU import tariffs using two partial equilibrium models linked to each other. Compared with previous work, tariff rate quotas are represented in great detail, going beyond the classical single-origin, single-destination approach. Furthermore, supply functions of EU sugar processors are calibrated based on empirical data on production costs to overcome the problem of non-observed production costs due to the existence quota rents. Results suggest that, in particular, sugar production in Balkan countries is adversely affected by a liberalisation of the EU sugar regime. Moreover, the simulation shows that preferential LDC-ACP exporters, among them Fiji and Papua New Guinea, are displaced from the EU market leading to a decline in production. An elimination of EU import tariffs benefits in particular the Ukraine and the world's largest sugar producers, such as Australia, all with currently only limited preferential market access to the EU. During periods of low global sugar prices, these countries even increase sugar production, if the EU sugar market is completely liberalised.

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“…This means that with the Armington approach, small import flows always stay small and zero import flows always stay zero (Calì et al . 2013).…”

Section: Discussionmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

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Liberalising the EU sugar market: what are the effects on third countries?*

Haß¹

2022

Aus J Agri & Res Econ

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“…The following decrease in the price was tremendous and heavily affected the ACP countries which had profited from the high price before. Preference erosion did occur (Calì et al., ).…”

Section: Introductionmentioning

confidence: 99%

Preference Erosion – The Case of Everything But Arms and Sugar

2016

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While the European Union's Everything But Arms (EBA) agreement has granted unlimited preferential access to the European market for the least developed countries (LDCs) since 2001, the sugar sector has been exempted for the first years. Only from 2009 on, the LDCs were entitled to export an unlimited amount of sugar to the EU, receiving the intervention price. The expected increase in sugar imports led the EU to substantially reduce the intervention price, besides other measures. This caused a disadvantage for countries which had been granted preferential access to the European market already: the African, Caribbean, and Pacific (ACP) countries. Our paper quantifies this erosion of preferences, employing a gravity framework. In terms of methodology we are addressing two fundamental problems well known in the gravity literature. The occurrence of excess zeros in the dependent variable of such disaggregated data is tackled with the employment of the scale‐independent negative binomial quasi generalised pseudo maximum likelihood estimator. The problem of identification is addressed by modelling the policy change with the continuous preference margin instead of using dummy variables. We find that preference erosion did occur. The ACP countries were indeed negatively affected by the consequences following the introduction of the EBA.

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“…The following decrease of the price was tremendous and heavily affected the ACP countries which had profited from the high price before. Preference erosion did occur (Calì et al, 2013). Sugar is a powerful example to show the negative impacts of the EBA for two reasons: firstly, it is a very intensively traded good: one third of the world production 4…”

Section: Introductionmentioning

confidence: 99%

Failures and Interventions on Agricultural Markets at the International, National and Regional Scale

Kopp¹

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Gabszewicz and Thisse (2000) summarise the four conditions which have to be met for a market to be competitive:• The number of firms active in the market is sufficient in the sense that the decisions of one firm do not have an influence on the market price (firm size and number )• No barriers exist for new (existing) firms to enter (leave) the market (free entry/exit)• Goods are homogeneous, leading to perfect substitutability between the products provided by two firms active on that market (product homogeneity)• Every participant of the market has all information on the market prices of all goods traded (perfect information) While Arthur C. Pigou did not invent the concept of externalities and market failure, he was the first to formally represent them in an economic model (Groenewegen, 2009;Pigou, 1932). His concept of market failure associated with externalities has been at the core of welfare economics ever since. Pigou assumed perfect competition (Marcuzzo, 2009), so in his view market failure can be found in otherwise perfectly competitive markets.Externalities exist if the production or consumption of a good generates effects tion. This partly depends on the definition of 'failure'. Koester for example, lists redistribution as an additional motivation for policy intervention besides market failure, as mentioned above (Koester, 2011). Pigou's concept of market failure, on the other hand, includes issues of distribution, so a policy that aims for redistribution would be categorized under the umbrella of correcting market failures. This means that the concentration of capital (which may lead to social friction) is also

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Sweet and Sour Changes in Trade Regimes

Cited by 6 publications

References 19 publications

Liberalising the EU sugar market: what are the effects on third countries?*

Liberalising the EU sugar market: what are the effects on third countries?*

Preference Erosion – The Case of Everything But Arms and Sugar

Failures and Interventions on Agricultural Markets at the International, National and Regional Scale

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