Figure 2: EU orange imports from major northern hemisphere suppliers, 1988-2004
M Morocco hh Israel HS Egypt ≡ Cyprus SS Tunisia & Turkey
Sources: Eurostat (various issues).
2.2 EU orange import policy
2.2.1 MFN policy
The EU external market regulation for oranges includes a seasonally varying ad valorem
tariff, with the highest tariff (16%) applied from October 16 to April 30 during the EU orange
harvest season (see Table 1). In addition, an entry price system is in effect from December 1
to May 31. In the event that the entry price is undercut, an additional specific tariff is levied,
its size varying proportionately to the difference between the product’s actual import price
and the entry price. The Maximum Tariff Equivalent (MTE) is the maximum specific tariff of
71 Euro that is levied if the minimum entry price is undercut by 8% or more. This MTE is
equivalent to 20.1% of the entry price.
The EU orange import system has been changed substantially in the course of the
implementation of the results of the Uruguay Round. Ad valorem tariffs for oranges were
reduced by 20% between 1995 and 2001, and the former reference price system was replaced
by the entry price system as of December 1995. The MFN entry price for oranges, introduced
on December 1995, was 34.3% higher than the former reference price, which was kept
constant since 1975. This rise in the minimum market price was designed to compensate EU
orange growers, mainly in Italy, for the abolition of the market penetration premium2 in the
course of the EU accession of Spain and Portugal. Following its introduction in 1995, the
MFN entry price for oranges was reduced slightly by 4% until 2001.
2 Market penetration premiums, a policy instrument to subsidize orange production, were paid to orange
growers on class I orange exports to other EU member countries prior to December 1995 (Swinbank and
Ritson, 1995).