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

Authors

Andrew Muhammad, Mississippi State UniversityFollow
William Amponsah, Georgia Southern UniversityFollow
Jennifer H. Dennis, Purdue University

Document Type

Article

Publication Date

Summer 2010

Publication Title

Applied Economic Perspectives and Policy

DOI

10.1093/aepp/ppp008

Abstract

This study examines the effects that the Generalized System of Preferences schemes for developing countries (GSP þ ) have on European Union (EU) demand for imported cut flowers. Without GSP þ , 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%.

Recommended Citation

Muhammad, Andrew, William Amponsah, Jennifer H. Dennis. 2010. "The Impact of Preferential Trade Arrangements on EU Imports from Developing Countries: The Case of Fresh Cut Flowers." Applied Economic Perspectives and Policy, 32 (2): 254-274. doi: 10.1093/aepp/ppp008
https://digitalcommons.georgiasouthern.edu/econ-facpubs/76