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The Trade-Enhancing Effect Of Non-Tariff Measures On Virgin Olive Oil

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  • Ronen, Eyal
Abstract
Over the last 15 years, the global trade of virgin olive oil (VOO) seems to face a stringent regulatory regime, mainly through the imposition of TBT and SPS measures. Such a development should have adversely impacted global levels of VOO trade. However, evidence shows that the world's imports of VOO have more than quadrupled in value since 2000. Alongside this trend, the share of VOO imports gradually shifts from traditional sources (mainly EU) to New World producing countries, such as Argentina, Australia, the USA, and Chile. By extracting data from hundreds of NTM regulations, as well as all possible registered bilateral trade flows between 2002 to 2014, this paper aims to empirically explore to what extent particular NTMs impact imports of VOO. The results indicate that while tariffs remain a stringent barrier, most NTMs have a positive impact on imports, rather than enhancing restrictiveness. The paper asserts that the majority of NTMs respond to consumers' demand for higher food safety standards and protection of human health, while increasing available information and transparency. That, in turn, leads to an expansion in the magnitude of imports of VOO products.

Suggested Citation

  • Ronen, Eyal, 2017. "The Trade-Enhancing Effect Of Non-Tariff Measures On Virgin Olive Oil," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 5(3), July.
    • Handle: RePEc:ags:ijfaec:266428
    DOI: 10.22004/ag.econ.266428
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    Cited by:

    1. Gründler, Klaus & Hillman, Arye L., 2021. "Ambiguous protection," European Journal of Political Economy, Elsevier, vol. 68(C).
    2. Eyal RONEN, 2017. "Quantifying the trade effects of NTMs: A review of the empirical literature," Journal of Economics and Political Economy, KSP Journals, vol. 4(3), pages 263-274, September.
    3. Ghodsi, Mahdi & Stehrer, Robert, 2022. "Non-Tariff Measures and the Quality of Imported Products," World Trade Review, Cambridge University Press, vol. 21(1), pages 71-92, February.
    4. Hammami, AbdelMalek & Beghin, John C., 2021. "The determinants of U.S. olive oil imports," 2021 Annual Meeting, August 1-3, Austin, Texas 312880, Agricultural and Applied Economics Association.
    5. Mahdi Ghodsi, 2023. "Regulatory Convergence within Technical Barriers to Trade," wiiw Working Papers 229, The Vienna Institute for International Economic Studies, wiiw.
    6. A. Malek Hammami & John C. Beghin, 2021. "The trade and welfare impacts of the U.S. retaliatory tariff on EU olive oil," Agricultural Economics, International Association of Agricultural Economists, vol. 52(5), pages 807-818, September.
    7. Maria Cipollina & Federica Demaria, 2020. "The Trade Effect of the EU’s Preference Margins and Non-Tariff Barriers," JRFM, MDPI, vol. 13(9), pages 1-20, September.

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    More about this item

    Keywords

    Agricultural and Food Policy; Demand and Price Analysis; Financial Economics; International Relations/Trade; Marketing; Production Economics;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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