Abstract
The European Common Market Organization for bananas (CMOB) is currently the most controversial tariff-rate quota (TRQ) policy among the increasing number of TRQs in international agricultural trade. The CMOB was introduced under the pressure of the Single European Act in July 1993. It has affected various countries of the European Union (E.U.) differently, as the previous national banana policies of the member countries implied differential levels of protection. The new policy regime, with a tariff quota as its major feature, has lowered the level of agricultural protection in formerly more protected countries (such as France). But a new trade barrier was introduced for countries that had more liberalized banana-trade policies before 1993. In particular, Germany has experienced higher prices due to the new policy. It is mainly these new barriers which have been discussed in public and criticized for being another policy-induced distortion in the international banana trade (Borrell, 1997).
Senior authorship is not assigned. Ideas for this paper were developed when Herrmann visited the Department of Agricultural and Resource Economics, University of California, Davis, in February, March, and June of 1998. A grant from Deutscher Akademischer Auslandsdienst (DAAD) is gratefully acknowledged. Thanks are due to Christina Moennich for very helpful comments on an earlier version.
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Herrmann, R., Sexton, R.J. (2002). Market Conduct and the Economic Impacts of a Tariff-Rate Quota Policy: The European Banana Case. In: Moss, C.B., Rausser, G.C., Schmitz, A., Taylor, T.G., Zilberman, D. (eds) Agricultural Globalization Trade and the Environment. Natural Resource Management and Policy, vol 20. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-1543-2_8
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