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The Free Trade Area of the Americas and the Market for Processed Orange Products

Published online by Cambridge University Press:  28 April 2015

Thomas H. Spreen ,
Charlene Brewster  and
Mark G. Brown
Thomas H. Spreen
Affiliation:
Food and Resource Economics Department, University of Florida, Gainesville, FL
Charlene Brewster
Affiliation:
Office of International Research and Development, Virginia Polytechnic Institute, Blacksburg, VA
Mark G. Brown
Affiliation:
Florida Department of Citrus and Courtesy Associate Professor, Food and Resource Economics Department, University of Florida, Gainesville, FL
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Abstract

The proposed Free Trade Area of the Americas would join the world's two largest processed orange producing regions: Brazil and the United States. Because the United States currently imposes a sizeable tariff on imported processed orange products, there is concern by U.S. orange growers over possible adverse effects resulting from tariff elimination. A model of the world processed orange market is developed as a spatial equilibrium model with implicit supply functions based on the dynamic behavior of orange production. The model is used to estimate the impact of U.S. tariff elimination on U.S. production, grower and processor prices, and imports. The results suggest a sizeable price impact on U.S. producers if the tariff is eliminated.

Keywords

orange juicespatial equilibriumtariffstradeC61F13
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 35 , Issue 1 , April 2003 , pp. 107 - 126
Copyright
Copyright © Southern Agricultural Economics Association 2003

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