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Food Safety and Trade: Winners and Losers in a Non-Harmonized World

Author

Listed:
  • Otsuki, Tsunehiro

    (The World Bank)

  • S. Wilson, John

    (The World Bank)

Abstract

Food safety and the trade-off between precaution and increased agricultural exports are at the forefront of policy debate. Moreover, how international standards are set for food safety, can have a profound effect on export prospects for the least developed countries. This study examines the impact of adopting international food safety standards and harmonization of standards on global food trade patterns. The paper estimates the effect of aflatoxin standards in 15 importing (4 developing) countries on exports from 31 (21 developing ) countries. We estimate that world exports would rise by $38.8 billion if an international standard (Codex) were adopted, compared to the current divergent national standards in place.

Suggested Citation

  • Otsuki, Tsunehiro & S. Wilson, John, 2003. "Food Safety and Trade: Winners and Losers in a Non-Harmonized World," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 18, pages 266-287.
    • Handle: RePEc:ris:integr:0234
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    Citations

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    Cited by:

    1. Li, Xiaoqian & Saghaian, Sayed H., 2012. "How Does Haccp Change U.S. Seafood Exports?-Analysis With Fishes, Mollusca, And Shellfish Other Than Mollusca," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119859, Southern Agricultural Economics Association.
    2. Fabio Gaetano Santeramo & Emilia Lamonaca, 2019. "The Effects of Non‐tariff Measures on Agri‐food Trade: A Review and Meta‐analysis of Empirical Evidence," Journal of Agricultural Economics, Wiley Blackwell, vol. 70(3), pages 595-617, September.
    3. Schuster, Monica & Maertens, Miet, 2013. "Food Standards, Heterogeneous Firms and Developing Countries’ Export Performance," Working Papers 152084, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    4. Schuster, Monica & Maertens, Miet, 2013. "Do private standards create exclusive supply chains? New evidence from the Peruvian asparagus export sector," Food Policy, Elsevier, vol. 43(C), pages 291-305.
    5. Xuqian Hu & Canfei He, 2020. "Nontariff measures, trade deflection, and market expansion of exporters in China," Growth and Change, Wiley Blackwell, vol. 51(3), pages 932-953, September.
    6. Maertens, Miet & Swinnen, Johan, 2015. "Agricultural trade and development: A value chain perspective," WTO Staff Working Papers ERSD-2015-04, World Trade Organization (WTO), Economic Research and Statistics Division.
    7. Santeramo, Fabio G., 2017. "On Non-Tariff Measures and Changes in Trade Routes: From North-North to South-South Trade?," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 263493, European Association of Agricultural Economists.
    8. Josef VOLOŠIN & Luboš SMUTKA & Richard SELBY, 2011. "Analysis of external and internal influences on CR agrarian foreign trade," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 57(9), pages 422-435.
    9. Drogué, Sophie & DeMaria, Federica, 2012. "Pesticide residues and trade, the apple of discord?," Food Policy, Elsevier, vol. 37(6), pages 641-649.
    10. Idris, S. & Singh, A. & Praveen, K.V., 2015. "Trade Competitiveness and Impact of Food Safety Regulations on Market Access of India’s Horticultural Trade," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 28(2).
    11. Ahn, Soojung & Steinbach, Sandro, 2021. "COVID-19 Trade Actions in the Agricultural and Food Sector," Journal of Food Distribution Research, Food Distribution Research Society, vol. 52(2), July.
    12. Monica Schuster & Miet Maertens, 2013. "8 Private Food Standards and Firm-Level Trade Effects: A Dynamic Analysis of the Peruvian Asparagus Export Sector," Frontiers of Economics and Globalization, in: Nontariff Measures with Market Imperfections: Trade and Welfare Implications, pages 187-213, Emerald Group Publishing Limited.
    13. Otsuki, Tsunehiro & Honda, Keiichiro & Michida, Etsuyo & Nabeshima, Kaoru & Ueki, Yasushi, 2015. "Effects of RoHs and REACH regulations on firm-level production and export, and the role of global value chains : the cases of Malaysia and Vietnam," IDE Discussion Papers 526, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    14. Bagai, Shweta & Wilson, John S., 2006. "The data chase : what's out there on trade costs and nontariff barriers ?," Policy Research Working Paper Series 3899, The World Bank.
    15. 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).
    16. Vural, Burçak Müge & Akgüngör, E. Sedef, 2019. "Quantifying the Trade and Welfare Effects of EU Aflatoxin Regulations on the Dried Fruit Industry," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 68(2), June.
    17. Wilson, John S. & Otsuki, Tsunehiro, 2004. "To spray or not to spray: pesticides, banana exports, and food safety," Food Policy, Elsevier, vol. 29(2), pages 131-146, April.
    18. Curzi, Daniele & Schuster, Monica & Maertens, Miet & Olper, Alessandro, 2020. "Standards, trade margins and product quality: Firm-level evidence from Peru," Food Policy, Elsevier, vol. 91(C).
    19. Muhammad ISHAQ & Qing PING & Zahoorul HAQ & Chongguang LI & Chen TONG, 2016. "Maximum residue limits and agrifood exports of China: choosing the best estimation technique," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(2), pages 78-92.
    20. Evelyn S. Devadason & VGR Chandran & Kaliappa Kalirajan, 2018. "Harmonization of food trade standards and regulations in ASEAN: the case of Malaysia's food imports," Agricultural Economics, International Association of Agricultural Economists, vol. 49(1), pages 97-109, January.
    21. Renjini, K K Veena, 2016. "Quantifying the effect of non-tariff measures and food safety standards on India’s fish and fishery products’ exports," Working Papers 375, Institute for Social and Economic Change, Bangalore.
    22. Drogué, S. & DeMaria, F., 2012. "« Comparing apples with pears. How differences in pesticide residues regulations impact trade? »," Working Papers MoISA 201201, UMR MoISA : Montpellier Interdisciplinary center on Sustainable Agri-food systems (social and nutritional sciences): CIHEAM-IAMM, CIRAD, INRAE, L'Institut Agro, Montpellier SupAgro, IRD - Montpellier, France.
    23. Nguyen, Anh Van Thi & Wilson, Norbert L.W., 2009. "Effects of Food Safety Standards on Seafood Exports to US, EU and Japan," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46758, Southern Agricultural Economics Association.
    24. Wilson, Norbert L. W., 2017. "Labels, Food Safety, and International Trade," ADBI Working Papers 657, Asian Development Bank Institute.
    25. Schuster, Monica & Maertens, Miet, 2015. "The Impact of Private Food Standards on Developing Countries’ Export Performance: An Analysis of Asparagus Firms in Peru," World Development, Elsevier, vol. 66(C), pages 208-221.

    More about this item

    Keywords

    Agricultural trade; Sanitang and phytosanitang measures; Food safety; Aflatoxins; Healthrisks; Gravity model; Codex;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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