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Abstract

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 $149,100, or 9.3%, in the organic exports of these products to the European Union each quarter.

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