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

Document Type


Publication Date

Summer 2010

Publication Title

Applied Economic Perspectives and Policy




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%.