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Pesticide residues and trade, the apple of discord?

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  • Drogué, Sophie
  • DeMaria, Federica

Abstract

In this paper we study the impact of the regulations on Maximum Residue Levels (MRLs) of pesticides on the trade of apples and pears and related processed products with the aim of understanding how their similarity (or dissimilarity) affect trade. Most studies investigate the impact of sanitary regulations introducing directly in the analysis the MRL put in force in the importing country. They introduce in the analysis the level of the regulation in the importing country without taking into account the rule in force in the exporting country. Rather than focusing on a particular pesticide we take into account the entire list of substances set out by the various regulations. We then build a similarity index and introduce it into a gravity equation to assess the impact of the differences in MRL of pesticides on trade. Results suggest that the differences between regulations matter and may, in some case, hinder trade.

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Bibliographic Info

Article provided by Elsevier in its journal Food Policy.

Volume (Year): 37 (2012)
Issue (Month): 6 ()
Pages: 641-649

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Handle: RePEc:eee:jfpoli:v:37:y:2012:i:6:p:641-649

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Web page: http://www.elsevier.com/locate/foodpol

Related research

Keywords: Food safety; Standards; Pesticides; MRL; Apple; Pear; Market access; Similarity index;

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References

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Citations

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Cited by:
  1. Xiong, Bo & Beghin, John C., 2012. "Stringent Maximum Residue Limits, Protectionism, and Competitiveness: The Cases of the US and Canada," Staff General Research Papers 35584, Iowa State University, Department of Economics.
  2. Pramila Crivelli & Jasmin Gröschl, 2012. "The Impact of Sanitary and Phytosanitary Measures on Market Entry and Trade Flows," Ifo Working Paper Series Ifo Working Paper No. 136, Ifo Institute for Economic Research at the University of Munich.
  3. Farnsworth, Derek, 2012. "Maximum Residue Limits: Protectionism or Food Safety?," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124931, Agricultural and Applied Economics Association.
  4. Li, Yuan & Beghin, John C., 2012. "Protectionism Indices for Non-Tariff Measures: An Application to Maximum Residue Levels," Staff General Research Papers 34985, Iowa State University, Department of Economics.
  5. DeMaria, F. & Drogué, S., 2013. "EU trade regulation for baby food: protecting health or trade?," Working Papers MOISA 201305, UMR MOISA : Marchés, Organisations, Institutions et Stratégies d'Acteurs : CIHEAM-IAMM, CIRAD, INRA, Montpellier SupAgro, IRD - Montpellier, France.
  6. Beghin, John C., 2012. "Non Tariff Measures with Market Imperfections: Trade and Welfare Implications," 2012: New Rules of Trade?, December 2012, San Diego, California 142787, International Agricultural Trade Research Consortium.
  7. Otsuki, Tsunehiro & Michida, Etsuyo & Nabeshima, Kaoru & Ueki, Yasushi, 2014. "Estimating the effect of chemical safety standards on firm performance in Malaysia and Vietnam," IDE Discussion Papers 455, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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