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Risking Market Integration without Regulatory Integration: The Case of NAFTA and BSE

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  • David H. Sparling
  • Julie A. Caswell

Abstract

Under the North American Free Trade Agreement (NAFTA), there has been a dramatic increase in the integration of markets for live cattle and beef products in Canada, Mexico, and the United States. These markets were severely disrupted in 2003 by the confirmation of single cases of bovine spongiform encephalopathy (BSE) in Canada and the United States. The bulk of this disruption could have been avoided if the countries had developed more closely coordinated risk management programs based on the guidance of international standards. The BSE events illustrate that failure to address regulatory integration leaves integrated markets vulnerable to recurring disruptions.

Suggested Citation

  • David H. Sparling & Julie A. Caswell, 2006. "Risking Market Integration without Regulatory Integration: The Case of NAFTA and BSE," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(2), pages 212-228.
    • Handle: RePEc:oup:revage:v:28:y:2006:i:2:p:212-228.
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    File URL: http://hdl.handle.net/10.1111/j.1467-9353.2006.00282.x
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    1. Unknown, 2003. "International Trade And Food Safety: Economic Theory And Case Studies," Agricultural Economic Reports 33941, United States Department of Agriculture, Economic Research Service.
    2. Unknown, 2005. "North American Agrifood Market Integration: Situation and Perspectives," 2004 NAAMIC Workshop I: North American Agrifood Market Integration: Current Situation and Perspectives 252450, North American Agrifood Market Integration Consortium (NAAMIC).
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    Cited by:

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    2. Fabio Gaetano Santeramo & Emilia Lamonaca, 2022. "Standards and regulatory cooperation in regional trade agreements: What the effects on trade?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(4), pages 1682-1701, December.
    3. Karl Meilke & James Rude & Steven Zahniser, 2008. "Is ‘NAFTA Plus’ an Option in the North American Agrifood Sector?," The World Economy, Wiley Blackwell, vol. 31(7), pages 925-946, July.

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