Trade in Intermediate and Final Products: Policy Impacts in Apple and Juice Markets
World apple and juice trade has steadily grown over the years; however, U.S. apple and juice exports and domestic consumption have remained stagnant relative to production. Consequently, U.S. apple prices have been depressed in recent years. Since the United States is a mature market, increasing exports to foreign markets is crucial to the profitability and long-run sustainability of the apple industry. However, U.S. apple and juice exports face unfair competition from other exporters and are also affected by trade barriers imposed by importers. A full understanding of the effects of foreign countries? policies on U.S. apple and juice markets is vital to the future of the industry. Objectives of this project are to a) theoretically specify and empirically estimate apple supply, juice production, and apple and juice demand for 32
countries/regions, b) theoretically analyze the impacts of tariffs and production subsidies on apple and juice markets, c) develop a large-scale trade model for world apple and juice markets and analyze the effects of trade barriers on U.S. supply, demand, exports, and prices, d) examine Chinese export competition using a strategic trade policy framework, e) analyze the implications of the ASEAN and MERCOSUR preferential free trade agreements, and f) investigate the effects of the Free Trade Agreement of America and U.S.-Chile free trade. This project addresses priority #2. provide knowledge to increase market access and reduce trade impediments, and #3. develop new models and theories to assess domestic and foreign consumer tastes and preference.