Revista Española de Estudios Agrosociales y Pesqueros

Ramos, Laura Marquez; Gomez, Victor Martinez

Revista Española de Estudios Agrosociales y Pesqueros

2017

Ramos, Laura Marquez | Gomez, Victor Martinez

This paper analyzes the effect of trade preferences granted to morocco by the European union on monthly exports of four fruits and vegetables: tomatoes, cucumbers, oranges and mandarines. We rely on a gravity framework and we take into account the potential endogeneity of trade preferences. We consider sectoral and monthly variability of the reduced entry price and the preferential tariffs. Quantitative limits for these preferences are also accounted for. our results show that trade preferences are significant in determining positively the trade flows from morocco to the Eu (empirical evidence in line of trade creation); and that preferential tariffs decrease exports from the rest of the world to the European union (empirical evidence in line of trade diversion). These results could have implications in negotiations for eventual revisions of the Euro-mediterranean Agreements. This paper also makes a methodological contribution when studying whether trade preferences divert trade. Specifically, we take into account the exports of the rest of the world of specific products to the Eu as the dependent variable in the gravity equation, while preferences granted to morocco in these products are included in the right-hand-side of the equation.

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