Abstract

The European Union (EU) Common Market Organization (CMO)for Fruits, which provides subsidies to Greek and other EU peach growers and processors has greatly altered the global competitive playing field for canned peaches. Greece now holds a 60 percent share of canned peach exports, up from just 11 percent in the early 1970's. The United States, on the other hand, has moved from a 23 percent share of the export market in the early 1970s, to a 4 percent share today, and, in most years since the mid-1980s, has been a net importer of canned peaches. The purpose of this study was to identify and analyze the factors underlying this reversal of competitive positions between the EU/Greece and the United States, and to assess the relative role of government support in the reversal.

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