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A State‐Level Analysis of the Impact of a U.S.‐EU Harmonization of Food Safety Standards on U.S. Exports of Fruits and Vegetables
Author(s) -
Karemera David,
Xiong Bo,
Whitesides Louis
Publication year - 2020
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/ppz014
Subject(s) - phytosanitary certification , international trade , tariff , european union , technical barriers to trade , gravity model of trade , harmonization , agriculture , food safety , international economics , probit model , trade barrier , agricultural economics , business , economics , geography , economic growth , food science , econometrics , chemistry , physics , archaeology , acoustics
A comprehensive trade agreement has the potential to intensify agricultural trade between the United States and the European Union (EU). The cooperation on non‐tariff barriers including food safety standards and sanitary and phytosanitary issues will expand trade in fruits and vegetables. Using quarterly bilateral trade data at the U.S. state level, we deployed gravity models and probit equations and found that a 10% reduction in MRL stringency would promote trade by 5%. If the final provisions endorse the Codex MRLs, the U.S.‐EU agreement would boost U.S. exports of fruits and vegetables to the EU by $473 million a year.