Technical note on changes in the EC banana import regime
Is there a tariff-only equivalent to the EU tariff rate quota regime? Insights from economic analysis
This technical note is intended as a guide to assist in the interpretation of existing analytical studies on the likely impact of this import policy change on developing countries. Various analytical studies are compared, some of which assess the potential effects of tariffs, others which attempt to estimate tariff equivalents to the current TRQ system, and others still that explore the validity of some key assumptions underlying these models, such as that of a perfectly competitive market. The extent of agreement between the different models on the likely impact of the proposed policy changes, and the reasons why estimates of these impacts vary across the studies are explored in detail.
This is the third of a series of papers that is part of a new FAO work programme to promote a more informed use of analytical studies related to agricultural trade policy debates and the WTO negotiations. The series examines current research on a range of commodities and cross-cutting themes. The preparation of this technical note was assisted by an informal consultation of experts involved in the analysis of banana trade, held in Rome from 28 to 29 October 2004. The note does not suggest any tariff equivalent, and indeed concludes that there is probably no single tariff equivalent of the existing EU tariff rate quota regime. The positions of interested parties are summarized to illustrate the wide differences in views regarding the appropriate tariff level, some of which may have evolved over time.
ERRATUM
UPDATE: FAO (2005) Is there a tariff-only equivalent to the EU tariff rate quota regime? Insights from economic analysis. FAO Trade Policy Technical Notes on Issues Related to the WTO Negotiations on Agriculture; Nr. 3: Bananas.
On page 15 and Table 6: Reference AGREEM. 2004. Obtención del nivel de arancel equivalente al régimen vigente del plátano en la UE 25 según el procedimiento previsto en el Apéndice del Anexo 5 del Acuerdo de Agricultura de la OMC. UAM, Madrid; should read José Luis Pérez Sánchez. 2004. Obtención del nivel de arancel equivalente al régimen vigente del plátano en la UE 25 según el procedimiento previsto en el Apéndice del Anexo 5 del Acuerdo de Agricultura de la OMC. Madrid.
