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Impact of European Union–U.S. Organic Equivalency Arrangement on U.S. Exports
Author(s) -
Demko Iryna,
Jaenicke Edward C
Publication year - 2018
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1093/aepp/ppx048
Subject(s) - european union , quarter (canadian coin) , international trade , organic farming , international economics , agricultural economics , agriculture , world trade , economics , business , geography , archaeology
This study uses the synthetic control method to investigate the impact of the 2012 bilateral organic equivalency arrangement between the European Union and the United States, the two largest organic markets in the world. Employing the newly‐available USDA Global Agricultural Trade System (GATS) data on organic trade, we collectively analyze 23 products of U.S. organic exports representing fresh produce, coffee, and tomato sauce, at the quarterly level during the 2011–2014 period. We find that the policy generates an increase of 9.1% in the organic exports of these products to the European Union each quarter.