Liberalization and tariff dismantling: Effects on the competitiveness of mussel cultivation industry in Spain
Abstract
Purpose
The purpose of this paper is to assess the impact that the free trade agreement between the European Union (EU) and Chile and its resulting dismantling of tariffs has had on the mussel cultivation industry, particularly in Galicia. Specifically, the authors examine how trade liberalisation has affected the mussel farming industry.
Design/methodology/approach
The authors aim to observe the general panorama of both the evolution of production, distinguishing between fresh and industrial usage, and the evolution of prices at source depending on destination (fresh or industrial in the period 2003-2012). In order to analyse the relationships between different agents of the value chain, Porter’s model has been used as a reference.
Findings
There is a loss of competitiveness in the mussel farming-production sector following the liberalisation agreement of 2006 and huge bargaining power of the processing sector vs the production sector.
Practical implications
There is an opportunity to implement traceability programmes and develop a more differentiated product. In addition, it is profitable to promote Galician mussels through generic advertising and promoting exports.
Originality/value
There is a lack of empirical studies about the impact that the new free trade agreement between the EU and Chile has had on the Spanish mussel industry. Particularly, the study analyses economic repercussions, managerial implications and new challenges stemming from the new context of trade liberalisation.
Keywords
Acknowledgements
This research has been developed under the framework of the research project entitled “Reform of the international fisheries governance” (DER 2013-45923R), funded by the Ministry of Economy and Competitiveness, within the National Program for Research, Development and Innovation focused on the challeges of the society. The authors also thank all the comments and suggestions made by two anonymous referees. These comments have improved the contribution of this paper.
Citation
González Laxe, F., Martín Palmero, F. and Calvo Dopico, D. (2016), "Liberalization and tariff dismantling: Effects on the competitiveness of mussel cultivation industry in Spain", British Food Journal, Vol. 118 No. 2, pp. 250-271. https://doi.org/10.1108/BFJ-03-2015-0087
Publisher
:Emerald Group Publishing Limited
Copyright © 2016, Emerald Group Publishing Limited