The Entry Price Threshold in EU Agriculture: Deterrent or Barrier?

14 Pages Posted: 28 Aug 2013

Date Written: 2012

Abstract

The paper investigates the effects of the entry price scheme (EPS) for a specific sector of agriculture: fresh fruit and vegetables. The analysis is conducted on the EU prices of tomatoes, lemons and apples for some of the main competing countries on the EU domestic markets: Morocco, Argentina, Turkey and China. The econometric analysis is based on testing and estimating a switching vector autoregressive model with endogenous threshold entry price level. The model shows the isolation effects and the accumulation of Standard Import Values (SIVs) above the trigger entry price. This paper contributes to clarify the role played by the EPS in avoiding or deterring low priced imports from main EU partner countries.

Keywords: Trade policy, Non-tariff barrier, Entry price system, EU agriculture, Fruits and vegetables, TVAR

JEL Classification: F13, Q17, Q18

Suggested Citation

Santeramo, Fabio Gaetano and Cioffi, Antonio, The Entry Price Threshold in EU Agriculture: Deterrent or Barrier? (2012). Journal of Policy Modeling, Vol. 34, 2012, Available at SSRN: https://ssrn.com/abstract=2316492 or http://dx.doi.org/10.2139/ssrn.2316492

Fabio Gaetano Santeramo (Contact Author)

University of Foggia ( email )

Largo Papa Giovanni Paolo
Foggia, 71100
Italy

Antonio Cioffi

University of Naples ( email )

Via Cinthia Monte S. Angelo
Via Cinthia Monte S. Angelo
Naples, 80123
Italy

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