Private Standards and their Role on International Food Market

Trade of agricultural and food products on world market is protected by very rigid standards in order to protect health and welfare of consumers, animals and plans, consistent to number of international agreement. Standards can be often used as screen for imposing nontariff barriers with the purpose to preserve economic interest of companies from developed countries. In this process export from undeveloped countries usually is seriously damaged. Relevant economic literature is discussing role of World trade organisation with special emphasis on negotiations on international level, partly neglecting role of other forms of provisions that can also have strong influence on quality and structure of foreign trade of agricultural and food products. This paper provides an overview of raise and development of private food safety and quality standards and analysis their increasing role on international trade of agricultural and food products. Most countries, especially those on low level of development, evaluate process of outspreading and richness of standards as an obstacle for export increase. Paper therefore explains positive effects that standards can have on international trade of agricultural and food products.