The Impact of Preferential Trade Arrangements on EU Imports from Developing Countries: The Case of Fresh Cut Flowers | Zendy

Muhammad Andrew | Zendy; Amponsah William A. | Zendy; Dennis Jennifer H. | Zendy

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The Impact of Preferential Trade Arrangements on EU Imports from Developing Countries: The Case of Fresh Cut Flowers

Author(s) -

Muhammad Andrew,

Amponsah William A.,

Dennis Jennifer H.

Publication year - 2010

Publication title -

applied economic perspectives and policy

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 1.4

H-Index - 49

eISSN - 2040-5804

pISSN - 2040-5790

DOI - 10.1093/aepp/ppp008

Subject(s) - fell , tariff , carnation , economics , developing country , international economics , european union , agricultural economics , cut flowers , international trade , business , geography , horticulture , biology , economic growth , cartography

This study examines the effects that the Generalized System of Preferences schemes for developing countries (GSP + ) have on European Union (EU) demand for imported cut flowers. Without GSP + , a tariff would be applied to flowers from Colombia and Ecuador. Results show that Colombian carnation prices have a negative effect on EU flower expenditures, resulting in preferential treatment for Colombia being mostly trade‐creating. When a tariff is applied to Colombia, imports of Colombian carnations and Kenyan roses fell by 7.3% and 1.9%, respectively, and other flowers from Ecuador and Israel fell by 1.9% and 1.8%, respectively. Total EU flower imports fell by 1.4%.

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