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Potential of Regional and Seasonal Requirements in US Regulation of Fresh Lemon Imports
Author(s) -
Cororaton Caesar B.,
Peterson Everett B.
Publication year - 2012
Publication title -
the world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/j.1467-9701.2012.01460.x
Subject(s) - economics , european union , reservation , international economics , agricultural economics , international trade , political science , law
Peterson regional destination and seasonal access restrictions are regulatory options available to mitigate pest risk on imported fresh fruits and vegetables rather than impose an import ban. This paper analyses the economic effects of potential entry of Argentine lemons into the United States under alternative geographic and seasonal restrictions. One challenge to assessing the economic effect of entry is determining the post‐entry quantity of Argentine exports. Using a homothetic trans‐log expenditure function, we calibrate a set of reservation prices for US demand for Argentine lemons based on observed prices and quantities of other lemon varieties. These are compared with a set of projected entry prices to determine whether entry will occur and post‐entry export levels. Across the policy scenarios, Argentine lemon exports to the United States range from 8.0 to 14.9 million kg. Higher prices for Argentine lemons reduce its exports to the European Union and other markets, while lemon exports from Chile and Mexico are adversely affected. Broader applications of regional and/or seasonal restrictions may be effective policies for achieving pest risk mitigation goals in a manner consistent with WTO obligations to minimise distortions to trade.