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The import effects of the Entry Price System

Santeramo, Fabio Gaetano and Martinez-Gomez, Victor and Márquez-Ramos, Laura and Lamonaca, Emilia (2019): The import effects of the Entry Price System.

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Abstract

The complexity of the trade policy environment in the European fruit and vegetables (F&Vs) market is mostly due to the Entry Price System (EPS), a non-tariff measure that regulates imports. We investigate the trade effects of the EPS by estimating a structural gravity model of trade flows from major European suppliers of apples, lemons, oranges, peaches, pears, table grapes and tomatoes. We assess how imports react to EPS overshoots and to volatility in Standard Import Values (SIVs). The EPS limits imports of low-priced F&Vs, but marked differences exist across products. In particular, while the efficacy of the EPS is valid for all products, its effectiveness is greater for less perishable F&Vs

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