The entry price threshold in EU F&V sector: deterrence or effective barrier?

The paper investigates the effects of the entry price scheme for fresh fruit and vegetables. The analysis is conducted on the EU prices of tomatoes, lemons and apples for some of the main competing countries on the EU domestic markets: Morocco, Argentina, Turkey and China. The econometric analysis is based on testing and estimating a switching vector autoregressive model with endogenous threshold entry price level. The model shows the isolation effects and the accumulation of SIVs above the trigger entry price. This paper contributes to clarify the role played by the EPS in avoid or deter low priced imports from main EU partner Countries.