Exporting to new destinations and the effects of tariffs: the case of meat commodities |
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Authors: | Pascal L. Ghazalian Bruno Larue Jean-Philippe Gervais |
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Affiliation: | Department of Economics, University of Lethbridge, Lethbridge, Alberta, Canada T1K 3M4;Center for Research on the Economics of Agri-food, Laval University, Quebec City, Quebec, Canada G1K 7P4;Department of Agricultural and Resource Economics, North Carolina State University, Raleigh, NC 27695, USA |
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Abstract: | This study uses a random parameter probit estimation to examine the effects of tariff liberalization on the probability of establishing new trading relationships in meat commodities. Our simulation results indicate that the effects of tariff reductions decrease with distance, but increase with the level of development. The probabilities of trade increase at an increasing rate with the size of tariff reductions thus justifying calls for ambitious liberalization schemes. Canada and Mexico are the NAFTA countries that are most likely to export in response to EU tariff reductions on bovine and poultry meats, while Brazil and Argentina emerge as the MERCOSUR countries most likely to penetrate the EU bovine meat market after EU tariff reductions. Uruguay's probability to export poultry meat is most responsive to EU tariff reductions. |
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Keywords: | C13 F13 F19 Q17 |
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