The entry price threshold in EU agriculture: deterrent or barrier?

The paper investigates the effects of the entry price scheme for fresh fruit and vegetables. The analysis is conducted on the European prices of tomatoes, lemons and apples for some of the main competing countries on the European domestic markets: Morocco, Argentina, Turkey and China. The econometric analysis is based on testing and estimating a switching vector autoregressive model with endogenous threshold entry price level. The model shows the isolation effects and the accumulation of Standard Import Values above the trigger entry price. This paper contributes to clarify the role played by the Entry Price System in avoiding or deterring low priced imports from main European partner Countries.