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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

David Karemera, Bo Xiong and Louis Whitesides

Applied Economic Perspectives and Policy, 2020, vol. 42, issue 4, 856-869

Abstract: 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.

Date: 2020
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Handle: RePEc:wly:apecpp:v:42:y:2020:i:4:p:856-869