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Abstract
International markets for agricultural products are often subject to a range of trade
barriers, and horticultural products are no exception. This paper examines the economic
implications of tariffs and sanitary and phytosanitary (SPS) regulations that are applied to global
markets for fresh apples and fresh oranges. We calculate regional-level tariff rates and ad
valorem equivalents for SPS barriers following the price-wedge approach. A simulation model is
developed and used to assess the price, quantity, and welfare implications of reducing tariffs,
removing SPS barriers, and removing SPS barriers that have been identified as a Special Trade
Concern (STC) by the World Trade Organization. Results suggest that a 36% reduction in global
tariffs would lead to greater welfare gains than would the elimination of SPS measures in apple
markets. However, in orange markets we find that SPS measures have much larger economic
implications for producers and consumers. Here a 36% reduction in tariffs would lead to smaller
overall welfare effects compared to removal of all SPS measures, and only slightly larger effects
than those from removal of STCs alone.