Current preferences of Southern Mediterranean Countries and their erosion after variations of the entry price system

Abstract

It has been calculated the value of the preference margin granted to Euro-Mediterranean partners in the cases of reduced entry prices in force, and then it has been simulated the impact of EU trade liberalisation for F&V on such values after two different alternatives of EP system variations resulting from a WTO agreement. The results of current preferences indicate that in monetary terms there is only a significant relevance of the preferential EPs in the case of Moroccan tomatoes and, to a lesser extent, in Moroccan clementines. Very little is the relevance for Jordanian tomatoes and cucumbers and Moroccan courgettes, cucumbers and artichokes. In the cases of oranges from Egypt, Morocco, Israel and Jordan, preferential EP has not meant potential monetary transfers to these preference-receiver countries. Instead, the ad valorem tariff exoneration seems crucial in almost all the products. With regard to the erosion of preferences as a result of a WTO agreement, the magnitude of the erosion depends crucially on the variation/no-variation of the current trigger EPs, and the undermining of preferences is concentrated mostly on Moroccan tomatoes.Entry prices, erosion of trade preferences, Euro-Mediterranean trade, fruits and vegetables, International Relations/Trade,