Abstract
We analyze the effect of different trade preferences granted to Southern and Eastern Mediterranean Countries (SEMCs). Specifically, we focus on monthly exports of four fruits and vegetables from Morocco to EU countries. We construct three indicators that consider different types of preferences and trade policies, and we include them in a gravity model. Furthermore, quantitative limits for these preferences are modelled. Our main results are that trade preferences are significant in positively determining exports from Morocco to the EU. Therefore, the Moroccan policy option that consists on negotiating trade preferences in key competitive sectors is translated into export increases.
