EU Trade Barriers in the Agri-Food Sector: When Protection Breeds Dependence

28 Pages Posted: 7 Apr 2009

See all articles by Olivier Cadot

Olivier Cadot

University of Lausanne - School of Economics and Business Administration (HEC-Lausanne); Centre for Economic Policy Research (CEPR); World Bank

Akiko Suwa-Eisenmann

L'Ecole Normale Superieure ; Paris School of Economics (PSE)

Jacques Gallezot

National Institute for Agricultural Research (INRA) - Applied Economics Laboratory; Centre d'Etudes Prospectives et d'Info. Internationales (CEPII)

Date Written: March 2009

Abstract

This paper looks for firm-level evidence that high rates of protection breed concentration of firm activities into highly protected sectors, endogenously generating vested interests in the maintenance of protection. We combine data on the EU's trade protection for food and agricultural products measured by ad-valorem equivalents (AVEs) with survey data on France's agri-food sector to show that indeed, small and mid-size firms and cooperatives in that sector are heavily concentrated in product lines protected by tariff-rate quotas (TRQs) at high rates. Those firms and cooperatives can be expected to be at the forefront of resistance to multilateral tariff cuts, in particular in the meat and dairy sectors. Overcoming their resistance would call for targeted adjustment assistance.

Keywords: agriculture, concentration, trade protection

JEL Classification: F13

Suggested Citation

Cadot, Olivier and Suwa-Eisenmann, Akiko and Gallezot, Jacques, EU Trade Barriers in the Agri-Food Sector: When Protection Breeds Dependence (March 2009). CEPR Discussion Paper No. DP7219. Available at SSRN: https://ssrn.com/abstract=1372539

Olivier Cadot (Contact Author)

University of Lausanne - School of Economics and Business Administration (HEC-Lausanne) ( email )

Unil Dorigny, Batiment Internef
Lausanne, 1015
Switzerland
+41 21 692 3463 (Phone)
+41 21 692 3495 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

World Bank ( email )

1818 H Street NW
Washington, DC 20433
United States

Akiko Suwa-Eisenmann

L'Ecole Normale Superieure ( email )

48 boulevard Jourdan
75014 Paris
France
+33 1 4313 6325 (Phone)
+33 1 4313 6362 (Fax)

Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

Jacques Gallezot

National Institute for Agricultural Research (INRA) - Applied Economics Laboratory ( email )

France

Centre d'Etudes Prospectives et d'Info. Internationales (CEPII)

9 rue Georges Pitard
Paris Cedex 15, F-75015
France

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