Bilateral Trade Agreements, Climate Change, and Access to Fresh Produce: An Application to Thompson

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  Improvements in global nutrition depend largely on the worldwide availability of safe and nutritious food,especially fruits and vegetables.Yet due to agricultural production cycles,fresh produce may be unavailable in many regions for parts of the year.Climate change will likely frustrate e_orts to improve both in-and out-of-season access to produce.Extreme weather events increase the probability of in-season yield losses,and more pronounced seasonal weather patterns will shorten harvest windows.I present a brief conceptual framework to investigate the extent to which FTAs can improve access to fresh fruits and vegetables amidst climate change.I then use fourteen years of monthly retail price data for Thompson Seedless table grapes in California to empirically estimate the effects of the US-Chile FTA on out-of-season access to fruits and vegetables.Finally,I combine the California data with monthly retail grape prices in Korea to determine if FTAs with seasonally differentiated trade partners can smooth in-season price spikes caused by extreme-weather-related yield losses in the home region even when fresh produce is out of season for the trade partner.I present evidence suggesting FTAs can have positive effects on both fronts.
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