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

• Published in: Applied economic perspectives and policy Vol. 32; no. 2; pp. 254 - 274
• Main Authors: Amponsah, William A, Dennis, Jennifer H, Muhammad, Andrew
• Format: Journal Article
• Language: English
• Published: Agricultural and Applied Economics Association 01.06.2010
• Series: Applied Economic Perspectives and Policy
• ISSN: 2040-5790; 2040-5804
• DOI: 10.1093/aepp/ppp008

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%. Copyright 2010, Oxford University Press.