The Impact of Preferential Trade Arrangements on EU Imports from Developing Countries: The Case of Fresh Cut Flowers

This study examines the effects that the Generalized System of Preferences schemes for developing countries (GSP þ ) have on European Union (EU) demand for imported cut flowers. Without GSP þ , a tariff would be applied to flowers from Colombia and Ecuador. Results show that Colombian carnation prices have a negative effect on EU flower expenditures, resulting in preferential treatment for Colombia being mostly trade-creating. When a tariff is applied to Colombia, imports of Colombian carnations and Kenyan roses fell by 7.3% and 1.9%, respectively, and other flowers from Ecuador and Israel fell by 1.9% and 1.8%, respectively. Total EU flower imports fell by 1.4%