Measuring domestic implications of tariff cuts under EU entry price regime

The entry price regime in the European Union (EU) applies to several products,mainly fresh fruits and vegetables. The complexity of the system with endogenousapplied tariffs makes the evaluation of different alternatives of tariff cuts morechallenging than for other regimes. The challenge applies to academics with interest onestimating market impacts, to WTO negotiators that need to evaluate proposals and topolicy-makers that may need to take decisions on options such as the declaration of asensitive product. This paper develops a methodology to compare different tariff cutsalternatives, including the URAA method that implies reductions in the level of theentry price, constant entry price, and Tariff Rate Quotas expansion. Uncertainty aboutinternational prices plays a central role on the estimated impacts on market access ofdifferent options. Reducing the level of entry prices can have relatively large impacts onmarket access for some products. The sensitive product treatment with TRQs maygenerate larger market access than the normal treatment. The proposed methodologyproofs to be able to quantify the economic impacts of tariff cuts under EU entry priceregime.