Frozen-Strawberry Tariff Hui Yu

Chinese Fruit May Spur EU Battle Chinese frozen-strawberry exporting is growing rapidly in Europe. Chinese frozen-strawberry exporting is growing rapidly in Europe. Low-cost produce exports cause penalties from Polish farms. Low-cost produce exports cause penalties from Polish farms. EU ’ s first agricultural import duty, a 34.2% punitive tariff on imports of frozen strawberries from China. EU ’ s first agricultural import duty, a 34.2% punitive tariff on imports of frozen strawberries from China. The trade officials must decide whether to make the tariff permanent. The trade officials must decide whether to make the tariff permanent.

Compare Strawberry Exports

Chinese Polish Advantages in inexpensive land and labor. Advantages in inexpensive land and labor. Benefit from tax breaks so as to undercut market prices. Benefit from tax breaks so as to undercut market prices. Government policies to boost agriculture. Government policies to boost agriculture. European farmers are benefit of heavy subsidies. European farmers are benefit of heavy subsidies. Polish workers earn more than double. Polish workers earn more than double. Company ’ s cost is twice due to social security and insurance. Company ’ s cost is twice due to social security and insurance.

Chinese Government Policies Tax-cutting policy in agriculture reform helps farmers to increase their income. Tax-cutting policy in agriculture reform helps farmers to increase their income. Fruit is exempt from tax. Provides tax breaks, inexpensive land to encourage investments on fruit-processing companies helping farmers. Provides tax breaks, inexpensive land to encourage investments on fruit-processing companies helping farmers. “ No 1 document ” sets policies to facilitate agricultural exports. “ No 1 document ” sets policies to facilitate agricultural exports.

Chinese frozen-strawberry exports Low cost produce exports undercut the market price. Low cost produce exports undercut the market price. European jam, yogurt producers need cheap fruit to cut their costs. European jam, yogurt producers need cheap fruit to cut their costs. EU consumers are benefit from Chinese fruit import to save their money. EU consumers are benefit from Chinese fruit import to save their money. European fruit farmers are asking for more protection from Chinese competition. European fruit farmers are asking for more protection from Chinese competition.

Punitive Tariff on Chinese Import Reduce frozen-strawberry supply to EU, market price goes up. Reduce frozen-strawberry supply to EU, market price goes up. As cost Increase, EU producers have to raise the prices for fruit products. As cost Increase, EU producers have to raise the prices for fruit products. EU consumers spend more. Demand will decrease. EU consumers spend more. Demand will decrease. Chinese farmers and fruit producers suffer losses. Chinese farmers and fruit producers suffer losses.

Economic View Reasonably utilize the scare resource, make more efficient PPF. Reasonably utilize the scare resource, make more efficient PPF. China supply cheaper fruit to save EU consumer money. EU can also sell other products to China. China supply cheaper fruit to save EU consumer money. EU can also sell other products to China. Low cost production should provide supply worldwide, benefit the whole society. Low cost production should provide supply worldwide, benefit the whole society. Tariff add barriers among countries, raise total production cost and block global economic cooperation. Tariff add barriers among countries, raise total production cost and block global economic cooperation.

Economic Policy Effect Is it the best way depending on tariff to protect EU fruit farmers and producer ? Is it the best way depending on tariff to protect EU fruit farmers and producer ? Positive policies help EU farmers to cut cost and increase advantage in global competition. Positive policies help EU farmers to cut cost and increase advantage in global competition. Chinese fruit producers divert production away from exports into the domestic market. Chinese fruit producers divert production away from exports into the domestic market.