Domestic Support and Border Measures for Processed Horticultural Products |
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| Authors: | Bradley J Rickard and Daniel A Sumner |
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| Institution: | Bradley J. Rickard is assistant professor, Agribusiness Department, California Polytechnic State University, San Luis Obispo. Daniel A. Sumner is director of the University of California Agricultural Issues Center, the Frank H. Buck, Jr. Professor, Department of Agricultural and Resource Economics, University of California, Davis and a member of the Giannini Foundation. |
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| Abstract: | In horticultural markets, trade barriers often apply to the processed products whereas domestic support applies to farm-produced raw commodities. Here we assess the effects of such trade barriers and domestic support by simulating the effects of policy reform on global processing tomato markets, which are faced with modest processed product tariffs and high domestic support in the European Union (EU). Both protection and EU subsidy drive down world welfare, but we find that reducing import tariffs for tomato products would yield greater effects on markets and larger welfare impacts outside Europe than would reductions in EU domestic support. |
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| Keywords: | agricultural trade policy equilibrium displacement model EU subsidies horticulture processing tomatoes tariffs welfare analysis WTO negotiations |
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