Policy impacts on the EU-Russian trade performance: The case of agri-food trade
The main goal of this paper is to provide an overview of the impact from Russian import ban on trade between the Russian Federation and the selected Western countries – especially EU members. Because of the applied ban characteristics, the European Union could be considered as the most affected subject of Russian protectionism. This paper identifies the changes affecting EU agrarian export performance in relation to the Russian Federation. Changes in the trade of vegetables, fruits, meat and animal products, dairy and dairy products and fish are identified. This paper also provides an overview of changes related to Russian trade competitiveness and territorial structure. The result of the applied import ban was a significant reduction of Russian agrarian import value – within the first three years alone, the value of imports was reduced by 7,389 million USD. The import ban also changed the overall competitiveness of Russian agricultural trade, while recognising that the comparative advantages of some commodity groups was reduced. The processed data is analysed through a set of the following instruments: self-sufficiency ratio, import dependency ratio and in the final part of the paper, the Lafay index (LFI) will be used for a brief analysis of the comparative advantages of the products included in the ban.
1. Boulanger, P., Dudu, H., Ferrari, E., & Philippidis, G. (2016). Russian roulette at the trade table: a specific factors CGE analysis of an agri‐food import ban. Journal of Agricultural Economics, 67(2), 272-291.
2. Drezner, D. W. (2000). Bargaining, enforcement, and multilateral sanctions: when is cooperation counterproductive?. International Organization, 54(1), 73-102.
3. GSPI. (2018). The doctrine of Food Security of RF 2009. Retrieved from http://government.ru/docs/16916/
4. Erokhin, V. (2017). Factors influencing food markets in developing countries: An approach to assess sustainability of the food supply in Russia. Sustainability, 9(8), 1313.
5. Erokhin, V., Ivolga, A., & Heijman, W. J. M. (2014). Trade liberalization and state support of agriculture: effects for developing countries. Agricultural Economics, 60(11), 524-537.
6. Goliński, B., Komur, M., & Guth, M. (2016). Consequences of Russian Embargo for Polish Agricultural Market and Potential Distribution Channels of Polish Food Products Covered by Russian Embargo. Roczniki Ekonomiczne Kujawsko-Pomorskiej Szkoły Wyższej w By
7. Ishchukova, N. (2015). The Formation of Russian Agrarian Trade Structure: Inter-industry vs. Intra-industry Trade Activities. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 62(6), 1293-1299.
8. Kaempfer, W. H., & Lowenberg, A. D. (2007). The political economy of economic sanctions. Handbook of defense economics, 2, 867-911.
9. Kapsdorferová, Z., & Sviridova, O. (2016). Impact of sanctions on agricultural policy in European Union and Russia. International Scientific Days 2016. The Agri-Food Value Chain: Challenges for Natural Resources Management and Society, 190-200.
10. Kastakova, E. (2012). The impact of comparative advantages in the deepening mutual foreign trade relations between the Slovakia and Russia. Ekonomicky Casopis, 60(7), 746-762.
11. Koptseva, N. P., & Kirko, V. I. (2017). Development of the Russian Economy's Agricultural Sector Under the Conditions of Food Sanctions (2015-2016). Journal of Environmental Management & Tourism, 8(1 (17)), 123.
12. Kutlina-Dimitrova, Z. (2017). The economic impact of the Russian import ban: a CGE analysis. International Economics and Economic Policy, 14(4), 537-552.
13. Mo, Y. (2016). Assessment of Russian Embargo Impact on Economies of the EU Countries - An Input-Output Approach Degree project/SLU Department of Economic, Swedish University of Agricultural Sciences Uppsala.
14. Sági, J., & Nikulin, E. E. (2017). The economic effect of Russia imposing a food embargo on the European Union with Hungary as an example. Studies in Agricultural Economics, 119(1316-2017-1546), 85.
15. Stankaitytė, B. (2016). Competitiveness of dairy products export to Russia and alternative markets. Management Theory and Studies for Rural Business and Infrastructure Development, 38(4), 425-435.
16. Lubos, S., Jindrich, S., Natalia, I., & Richard, S. (2016). Agrarian import ban and its impact on the Russian and European Union agrarian trade performance. Agricultural Economics, 62(11), 493-506.
17. Svatoš, M., Smutka, L., & Ishchukova, N. (2014). The position of agriculture in the Russian Federation-the last two decades development overview. Agricultural Economics, 60(11), 489-502.
18. Wegren, S. K. (2014). The Russian food embargo and food security: can household production fill the void?. Eurasian geography and economics, 55(5), 491-513.
19. Zaghini, A. (2003). Trade advantages and specialisation dynamics in acceding countries. Working paper [№ 249], European central bank, Frankfurt am Main Germany, 4-15.