Analysis of the influence of Cross-Strait policy on pineapple trade

Abstract

To prevent the risk of plant epidemic at the source, the General Administration of Customs of mainland China decided to prohibit the import of pineapples from Taiwan starting from March 1, 2021. Leveraging data from the 2020 mainland China and Taiwan Agricultural Statistical Report, we constructed a model to analyze the impact of mainland China's trade policy changes on the pineapple market in Taiwan. The results of the analysis indicate that the policy change will have a severe impact on Taiwan's pineapple market and will significantly affect producers' investment confidence. Achieving market equilibrium and overall efficiency in the pineapple market would be challenging, given the targeted nature of this policy change. Comparatively, the fruit industry, including pineapples, exhibits the weakest durability in risk management against such targeted policy changes, when compared to other agricultural products. Import policies from large unified market economies have a decisive impact on small exporting regions.