The Sunshine State Versus Brazil: Economics of the Orange Juice Trade

Posted: 23 Jan 2007

See all articles by Colin A. Carter

Colin A. Carter

University of California, Davis - Department of Agricultural and Resource Economics

Sandeep Mohapatra

University of Alberta - Faculty of Agriculture, Forestry & Home Economics - Department of Rural Economy

Date Written: 2007

Abstract

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

Suggested Citation

Carter, Colin A. and Mohapatra, Sandeep, The Sunshine State Versus Brazil: Economics of the Orange Juice Trade (2007). Available at SSRN: https://ssrn.com/abstract=958682

Colin A. Carter

University of California, Davis - Department of Agricultural and Resource Economics ( email )

One Shields Avenue
Davis, CA 95616
United States

Sandeep Mohapatra (Contact Author)

University of Alberta - Faculty of Agriculture, Forestry & Home Economics - Department of Rural Economy ( email )

Edmonton, Alberta
Canada

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