The import effects of the Entry Price System

Fabio Santeramo, Victor Martinez-Gomez and Laura Márquez-Ramos

No 2023/47, RSCAS Working Papers from European University Institute

Abstract: The complexity of the trade policy environment in the European fruit and vegetables (F&Vs) market is mostly due to the Entry Price System (EPS), a non-tariff measure that regulates imports. We investigate the trade effects of the EPS by estimating a structural gravity model of trade flows from major European suppliers of apples, lemons, oranges, peaches, pears, table grapes and tomatoes. We assess how imports react to EPS overshoots, difference between import price and entry price threshold, and to level and volatility in Standard Import Values (SIVs). The EPS limits imports of F&Vs, but differences exist across products. While the efficacy of the EPS is valid for all products, its effectiveness is greater for less perishable F&Vs.

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Related works:
Working Paper: The import effects of the Entry Price System (2023)
Working Paper: The import effects of the Entry Price System (2019)
Journal Article: The Import Effects of the Entry Price System
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