Simulating the impacts of trade restrictions : an application to the European salmon trade

Abstract

During the last decade there has been a number of conflicts in relation to the trade of salmon in the EU. A current agreement between Norway and the EU includes a voluntary minimum import price agreement for exporters. A 13% tariff is paid by exporters that do not accept the agreement. We investigate the expected welfare effects of this tariff by analysing a general equilibrium demand curve. The results indicate that only Norwegian exporters are beneficial to target for EU producers. The total welfare effect of the tariff depends critical on the supply structure of EU and Norwegian salmon.