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1、Chinaisthelargestproduceroffreshfruitandvegetablesintheworld,accountingfor36%ofworldproductionin2005(FAO,2009).Also,Chinahasbecomeamajorexporteroffreshfruitandvegetablesinrecentyears.Between2002and2006,China'sfreshfruitandvegetableexportsrosecontinuously,morethandoublinginvaluetonearly5bil

2、lionUS$in2006(FAO,2009).Thenettradepositionforfreshfruitsandvegetableshasalsocomeclosetodoublingduringthisperiod,reaching3.5billionUS$.AlthoughtheEuropeanUnion(EU)isnotamajordestinationmarketforfreshfruitandvegetableexportsfromChina,someproducts,suchasapplesandpears,areexportedtotheEUatanincreasing

3、rate.Inparticular,China'sappleexportstotheEUincreasedfrom1milliontonsto20milliontonsfrom2000to2004,equivalenttoanannualincreasebyover110%.ThisstronggrowthinChina'sappleexportstotheEUinconjunctionwithproblemsoftheirmonitoringbytheEUraisedseriousconcernsbyEUproducers,whichweretackle

4、dbytheEuropeanCommissionbyintroducinganewlicensesystemforEUappleimportsin2005.Thisdevelopmenthastobeseenagainstthebackgroundofapplesandpearsbeingtreatedas“sensitive”productsintheEUandthustheirproductionisprotectedbytheEUentrypricesystem(EPS),aimingtorestrictfreshfruitandvegetableexportsbelowaminimu

5、mimportpricebymeansofaproduct-specific,seasonallyvaryingentryprice(EP).InadditiontotheEPS,appleandpearmarketsintheEUareprotectedbyadvaloremtariffsofupto20%.SinceChinadoesnotenjoypreferentialaccesstothesemarkets,ithastocomplywiththemost-favoured-nation(MFN)marketaccessconditionsoftheEPS.II43,&lt

6、;1-^32,=52驟lcIsi"10fi隹=^^.fctH20011>IFig.LChind'sfreshfruitjndvegetabletrade,2002-2DC6(inbilLUSi}.Sources:FAD(2009),owncalcuylions.InlightoftheincreasingfruitandvegetableexportsofChinatotheEU,ourresearchquestionistowhichextenttheEPSisrelevantforChineseappleandpearexportstot

7、heEU.WeassumethatiftheEPSisrelevant,ithassomeeffectontheEUimportprice,implyingthatimportpricesarehigherthanotherwise.ThismeansthattherelevanceoftheEPSisnotnecessarilyhighestintheseasonwhentheEPandtheadvaloremtariffarehighest.Instead,accordingtoourdefinition,the