Skip to main content

Effects of trade diversion and trade creation of MERCOSUR on US and world apple markets

Buy Article:

$53.17 plus tax (Refund Policy)


Apples are the third most valuable fruit in the United States and account for 18% of US fruit exports. Chile is a major competitor to the United States in the MERCOSUR market, since it is one of the leading apple producing countries and enjoys the tariff reductions as a member of MERCOSUR. Consequently, Chilean exports displace US exports in MERCOSUR. In addition, other MERCOSUR members import more from lower-cost Chile, leading to a reduction in production and an increase in consumption in these countries. This study develops a theoretical and an empirical model of world apple market to quantify the trade diversion and trade creation effects of the MERCOSUR free trade agreement and to estimate the welfare impacts.

Keywords: F13; F15; MERCOSUR; apple; trade creation; trade diversion

Document Type: Research Article


Affiliations: Department of Agricultural Economics, University of Idaho, Moscow, ID, 83844–2334, USA

Publication date: November 1, 2013

More about this publication?

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more