Analysis of U.S. Demand for Fresh Fruit and Vegetable Imports
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Increased promotion and awareness of healthy diets has contributed to growth in demand for fresh fruits and vegetables, for which the United States has become increasingly more dependent on imports. A modified LA/AIDS model captured seasonality and the effects of trade policy for select U.S. fresh fruit and vegetable imports from 1989 through 2008. The introduction of NAFTA significantly increased expenditure shares for papayas, tomatoes, and peppers, but it negatively influenced budget shares for bananas and pineapples. Fresh fruits and vegetables, except bananas, showed a positive trend in import budget shares, and seasonality was significant for all the commodities.