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Frozen-Strawberry Tariff

Frozen-Strawberry Tariff. Hui Yu. Chinese Fruit May Spur EU Battle. Chinese frozen-strawberry exporting is growing rapidly in Europe. Low-cost produce exports cause penalties from Polish farms.

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Frozen-Strawberry Tariff

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  1. Frozen-Strawberry Tariff Hui Yu

  2. Chinese Fruit May Spur EU Battle • Chinese frozen-strawberry exporting is growing rapidly in Europe. • 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. • The trade officials must decide whether to make the tariff permanent.

  3. Compare Strawberry Exports

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

  5. Chinese Government Policies • 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. • “No 1 document” sets policies to facilitate agricultural exports.

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

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

  8. Economic View • 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. • 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.

  9. Economic Policy Effect • 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. • Chinese fruit producers divert production away from exports into the domestic market.

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