U.S.-EU banana war: Implications of retaliatory tariffs on Pecorino cheese

Vahe Heboyan, Glenn C W Ames, James E. Epperson

Research output: Contribution to journalArticle

Abstract

Because of the European Union's failure to adhere to the dispute settlement panel's findings in the banana dispute, the United States imposed prohibitive tariffs (100% ad valorem) on imports of selected EU products, including Pecorino cheese, as a retaliatory trade policy permitted under WTO rules. This paper illustrates the economic impact of U.S. retaliatory policy. The estimated loss in consumer surplus for Pecorino cheese users was $4.96 million per year. As a result of U.S. policy, tariff revenue and deadweight loss were $1.86 and $3.10 million, respectively. Italian producers lost an estimated $8.55 million in revenue due to reduced exports to the United States, nearly twice the welfare loss experienced by U.S. consumers.

Original languageEnglish (US)
Pages (from-to)53-69
Number of pages17
JournalJournal of Euromarketing
Volume11
Issue number3
DOIs
StatePublished - Dec 1 2002
Externally publishedYes

Fingerprint

revenue
tariff policy
EU
trade policy
economic impact
WTO
import
producer
welfare
European Union
loss
tariff
Cheese
Banana
Tariffs
policy
Revenue
surplus
product

Keywords

  • Economic impact
  • U.S. countervailing duties
  • WTO

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Marketing

Cite this

U.S.-EU banana war : Implications of retaliatory tariffs on Pecorino cheese. / Heboyan, Vahe; Ames, Glenn C W; Epperson, James E.

In: Journal of Euromarketing, Vol. 11, No. 3, 01.12.2002, p. 53-69.

Research output: Contribution to journalArticle

Heboyan, Vahe ; Ames, Glenn C W ; Epperson, James E. / U.S.-EU banana war : Implications of retaliatory tariffs on Pecorino cheese. In: Journal of Euromarketing. 2002 ; Vol. 11, No. 3. pp. 53-69.
@article{fb5f6ed429734c3e87ed08b82da81719,
title = "U.S.-EU banana war: Implications of retaliatory tariffs on Pecorino cheese",
abstract = "Because of the European Union's failure to adhere to the dispute settlement panel's findings in the banana dispute, the United States imposed prohibitive tariffs (100{\%} ad valorem) on imports of selected EU products, including Pecorino cheese, as a retaliatory trade policy permitted under WTO rules. This paper illustrates the economic impact of U.S. retaliatory policy. The estimated loss in consumer surplus for Pecorino cheese users was $4.96 million per year. As a result of U.S. policy, tariff revenue and deadweight loss were $1.86 and $3.10 million, respectively. Italian producers lost an estimated $8.55 million in revenue due to reduced exports to the United States, nearly twice the welfare loss experienced by U.S. consumers.",
keywords = "Economic impact, U.S. countervailing duties, WTO",
author = "Vahe Heboyan and Ames, {Glenn C W} and Epperson, {James E.}",
year = "2002",
month = "12",
day = "1",
doi = "10.1300/J037v11n03_04",
language = "English (US)",
volume = "11",
pages = "53--69",
journal = "Journal of Euromarketing",
issn = "1049-6483",
publisher = "Haworth Press Inc.",
number = "3",

}

TY - JOUR

T1 - U.S.-EU banana war

T2 - Implications of retaliatory tariffs on Pecorino cheese

AU - Heboyan, Vahe

AU - Ames, Glenn C W

AU - Epperson, James E.

PY - 2002/12/1

Y1 - 2002/12/1

N2 - Because of the European Union's failure to adhere to the dispute settlement panel's findings in the banana dispute, the United States imposed prohibitive tariffs (100% ad valorem) on imports of selected EU products, including Pecorino cheese, as a retaliatory trade policy permitted under WTO rules. This paper illustrates the economic impact of U.S. retaliatory policy. The estimated loss in consumer surplus for Pecorino cheese users was $4.96 million per year. As a result of U.S. policy, tariff revenue and deadweight loss were $1.86 and $3.10 million, respectively. Italian producers lost an estimated $8.55 million in revenue due to reduced exports to the United States, nearly twice the welfare loss experienced by U.S. consumers.

AB - Because of the European Union's failure to adhere to the dispute settlement panel's findings in the banana dispute, the United States imposed prohibitive tariffs (100% ad valorem) on imports of selected EU products, including Pecorino cheese, as a retaliatory trade policy permitted under WTO rules. This paper illustrates the economic impact of U.S. retaliatory policy. The estimated loss in consumer surplus for Pecorino cheese users was $4.96 million per year. As a result of U.S. policy, tariff revenue and deadweight loss were $1.86 and $3.10 million, respectively. Italian producers lost an estimated $8.55 million in revenue due to reduced exports to the United States, nearly twice the welfare loss experienced by U.S. consumers.

KW - Economic impact

KW - U.S. countervailing duties

KW - WTO

UR - http://www.scopus.com/inward/record.url?scp=0036998678&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0036998678&partnerID=8YFLogxK

U2 - 10.1300/J037v11n03_04

DO - 10.1300/J037v11n03_04

M3 - Article

AN - SCOPUS:0036998678

VL - 11

SP - 53

EP - 69

JO - Journal of Euromarketing

JF - Journal of Euromarketing

SN - 1049-6483

IS - 3

ER -