The Impact of ISO22000 Standard Diffusion on Agricultural Exports

The WTO SPS Agreement sets a framework of rules that encourages harmonization through international standards. However, there is a lack of empirical research at the macro-level on how such international standards affect trade flows. This study conducts a general impact analysis on one of the most widely used food-related international standards in the world, the ISO22000, accounting for the different product types and country groups. The Codex Alimentarius Commission, one of three sister organizations of the SPS Agreement, notably participated in developing this standard that is based on its Food Code, harmonizing the Hazard Analysis and Critical Control Points (HACCP) and Good Manufacturing Practice (GMP). This study employs recent developments in using the gravity model, along with uniquely employed additional specifications to enhance further the reliability of the estimates. Results show that ISO22000 diffusion negatively affects the exports of processed products that are the major export goods of developed countries. Primary and semi-processed products that compose the majority of developing country exports are not significantly affected, providing evidence against the concerns for the compliance burdens of developing countries when being certified to the standard. The burdens may depend more on the degree of processing of the exported goods rather than on a country's development status.