Simulating the impacts of trade restrcitions: an application to the European salmon trade

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Bernt Aarset, Frank Asche, Carsten Lynge Jensen

During the last decade there has been a number of conflicts in relation to the trade of salmon in the EU. A 5-year agreement between Norway and the EU including an import constraint and a voluntary minimum import price agreement for exporter just expired, with a 13% tariff to be paid by exporters that do not accept the agreement. A year after the agreement expired, there are again calls for safeguard measure to protect EU-producers. We investigate the expected welfare effects of this tariff by analyzing a general equilibrium demand curve. In contrast to earlier studies we use a derived demand approach rather the consumer demand as most available data are at the trade level. The results indicate that only Norwegian exporters are beneficial to target for EU producers. The total welfare effect of the tariff depends critically on the supply structure of EU and Norwegian salmon.
Original languageEnglish
JournalAquaculture Economics & Management
Volume10
Issue number3
Pages (from-to)201-221
Number of pages21
ISSN1365-7305
DOIs
Publication statusPublished - 2006
Externally publishedYes

ID: 41888062