The Sunshine State Versus Brazil: Economics of the Orange Juice Trade
Posted: 23 Jan 2007
Date Written: 2007
The U.S and Brazil are the key-players in the international market for orange juice, mainly frozen concentrated orange juice - FCOJ. The industry in Florida benefits from one of the highest levels of import protection in U.S. agriculture. Additional trade protection was recently added with Florida's victory in an antidumping suit against Brazil. In the antidumping ruling, the US International Trade Commission (ITC) was split 3-3 over the question of whether imports from Brazil materially affect U.S. FCOJ prices. The domestic industry is determined the winner with any split ITC ruling, so Florida won. We study the impact of monthly FCOJ imports from Brazil on U.S. prices and find the econometric evidence supports the 3 dissenting USITC commissioners.
Keywords: Import Protection, Antidumping, Trade Elasticity, Error Correction, FCOJ
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