ANALYSIS OF IMPORT DEMAND FOR U.S. FRESH GRAPES: AN APPLICATION OF THE ROTTERDAM MODEL

The Rotterdam model was used to determine the demand for fresh table grapes in Canada, Japan, and Sweden from 1971-1990. Results of elastic expenditure elasticities and cross price elasticities indicating that U.S. grapes are considered substitutes for grapes from other countries, suggest that the U.S. grape producers have a competitive edge in these countries. The trade agreements and trade negotiations with Canada and Japan will assist in making relative prices lower for U.S. grapes, encouraging their consumption. Lastly, Canada, Japan, and Sweden are all expected to grow in wealth, as well as their demand for fruit, especially grapes.