Customs Tariff and Its Impact on the Frozen Red Meat Market in Egypt

Document Type : Original Article

Authors

1 Department of Economics and Agricultural Business Administration - Faculty of Agriculture - University of Alexandria

2 Department of Animal Production and Fisheries - College of Agriculture - University of Alexandria

Abstract

The agricultural sector is considered as a generator of national income and a provider of economic development. And is an important supporter of the industrial sector, which provides it with a lot of production inputs, raw materials and labor necessary for the operation of the industrial process. Livestock production is an important agricultural production activity in the Egyptian agricultural sector. Foreign trade is the main pillar on which the economic development of any country. Customs policy is an essential part of the country's foreign fiscal policy, and tariff is the most important instrument of fiscal and customs policy. It is the most important decision-maker in the country where foreign trade literature is known as the foreign policy strategy of trade policy strategy to achieve national economic goals.
The research objectives were:       
• Studying the evolution and changes in the customs tariff during the study period, and the impact on the frozen meat market in Egypt during the period 1995-2015.
• Determining the relationship between tariff and frozen red meat prices in the local market.
The current situation of production, consumption and the gap of red meat in Egypt during the period 1995 to 2015 was addressed. The reasons behind the selection of frozen red meat are 99% of the total imported red meat, as well as the absence of accurate data on imports of live livestock. The study used a variety of tools and methods of statistical analysis and econometrics, which involves time series analysis, using the unit root test to ensure that all the variables under study are stationary, and to determine the extent of a common integration to identify the possibility of long-term integration or balance relationships between the variables studied and the Granger's causality test to Causality between the variables, determining the direction of the relation between the variables and determining the extent of the feedback relationship or a reciprocal relationship between the variables studied.
The most important results of the study are:
there are large fluctuations in the total value of imports of red meat in current values, the annual growth rate of the consumer price of frozen red meat rose in the second period from the first period of the study either in current values ​​or in real values, The annual rate of change in the quantity of frozen red meat imports in Egypt was about twice the annual rate of change of red meat production in local Egypt, and there was no improvement in the Egypt's average red meat per capita.
The customs tariff on imports of frozen red meat, domestic production of red meat, the consumer price of frozen red meat In real terms, the annual population growth rate, the consumer price of fish at current values ​​has a statistically significant effect on the amount of frozen red meat imports.
 

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