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Balancing food safety and risk: do drug residue limits affect international trade in beef?

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Author Info
John Wilson
Tsunehiro Otsuki
Baishali Majumdsar

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Abstract

There have been a number of high profile food safety disputes in trade over the past decade. These include the widely publicized case at the World Trade Organization between the US and EU over hormone-treated beef. In particular, consumers in some industrialized countries have expressed concern over the health implications of consuming beef produced with antibiotics and other artificial supplements. Developing countries are affected in a significant way in how these concerns are addressed, as well as the balance between risk and safety reflected in how standards are set. This paper examines the impact of drug residue standards on trade in beef and the trade effect of setting harmonized international standards. We find that if international standards set by Codex were followed in antibiotics, global trade in beef would rise by over $3.2 billion. Among other developing countries, South African exports would rise by $160 million, Brazil's by $200 million, and Argentina's by over $300 million.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Journal of International Trade & Economic Development.

Volume (Year): 12 (2003)
Issue (Month): 4 (December)
Pages: 377-402
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Handle: RePEc:taf:jitecd:v:12:y:2003:i:4:p:377-402

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Related research
Keywords: Beef Trade; Tetracycline Standards; Gravity Model; Codex; Antibiotics; Food Safety;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Henson, Spencer & Mazzocchi, Mario, 2002. " Impact of Bovine Spongiform Encephalopathy on Agribusiness in the United Kingdom: Results of an Event Study of Equity Prices," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 84(2), pages 370-86, May. [Downloadable!] (restricted)
  2. Otsuki, Tsunehiro & Wilson, John S. & Sewadeh, Mirvat, 2001. "Saving two in a billion: : quantifying the trade effect of European food safety standards on African exports," Food Policy, Elsevier, vol. 26(5), pages 495-514, October. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Chunlai Chen & Jun Yang & Christopher Findlay, 2008. "Measuring the Effect of Food Safety Standards on China’s Agricultural Exports," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 144(1), pages 83-106, April. [Downloadable!] (restricted)
  2. Unnevehr, Laurian J., 2006. "Food Safety as a Global Public Good: Is There Underinvestment?," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25733, International Association of Agricultural Economists. [Downloadable!]
  3. Ghazalian, Pascal & Tamini, Lota & Larue, Bruno & Gervais, Jean-Philippe, 2007. "A Gravity approach to evaluate the significance of trade liberalization in vertically-related goods in the presence of non-tariff barriers," MPRA Paper 2744, University Library of Munich, Germany. [Downloadable!]
  4. JINJI Naoto, 2009. "An Economic Theory of the SPS Agreement," Discussion papers 09033, Research Institute of Economy, Trade and Industry (RIETI). [Downloadable!]
  5. INABA Masaru & NUTAHARA Kengo, 2009. "The Role of Investment Wedges in the Carlstrom-Fuerst Economy and Business Cycle Accounting," Discussion papers 09030, Research Institute of Economy, Trade and Industry (RIETI). [Downloadable!]
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