Domestic Support and Border Measures for Processed Horticultural Products

Bradley J. Rickard and Daniel A. Sumner

American Journal of Agricultural Economics, 2008, vol. 90, issue 1, pages 55-68

Abstract: In horticultural markets, trade barriers often apply to the processed products whereas domestic support applies to farm-produced raw commodities. Here we assess the effects of such trade barriers and domestic support by simulating the effects of policy reform on global processing tomato markets, which are faced with modest processed product tariffs and high domestic support in the European Union (EU). Both protection and EU subsidy drive down world welfare, but we find that reducing import tariffs for tomato products would yield greater effects on markets and larger welfare impacts outside Europe than would reductions in EU domestic support. Copyright ©2008 American Agricultural Economics Association.

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