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Technical Barrier Effects of a Food Safety Measure – a Case of Finnish Salmonella Control Program

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  • Niemi, Jyrki S.
  • Peltola, Jukka
  • Simola, Antti
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    Abstract

    In this paper, indirect costs of Finnish Salmonella Control Program (FSCP) due to its trade effects are evaluated. FSCP is a part of Finnish biosecurity policies intended to shield Finnish food supply and consumption chain from salmonella outbreaks. The program directly increases costs of importing by e.g. requiring costly certificates for imports. Additionally, it may cause anxiety to suppliers of imports as there are added uncertainties in the import process. As similar requirements apply to domestic suppliers, the program should not be thought of as a technical trade barrier (TBT), however, it may affect trade flows indirectly and effects may be assessed in a similar manner as those of TBT’s. The evaluation of the trade effects is performed using a combined price wedge-gravity approach and they are quantified as tariff-equivalents. After determining the tariff equivalent, sensitivity results are provided as some of the parameter values used in the calculation are difficult to observe directly.

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    Bibliographic Info

    Paper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 43953.

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    Date of creation: 2008
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    Handle: RePEc:ags:eaae08:43953

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    Keywords: International trade; biosecurity; welfare analysis; Food Consumption/Nutrition/Food Safety;

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    1. Chengyan Yue & John Beghin & Helen H. Jensen, 2006. "Tariff Equivalent of Technical Barriers to Trade with Imperfect Substitution and Trade Costs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(4), pages 947-960.
    2. Tanner, Carolyn, 1997. "Principles of Australian Quarantine," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 41(4), December.
    3. John C. Beghin & Jean-Christophe Bureau, 2001. "Quantification of Sanitary, Phytosanitary, and Technical Barriers to Trade for Trade Policy Analysis," Food and Agricultural Policy Research Institute (FAPRI) Publications 01-wp291, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
    4. Tanner, Carolyn & Nunn, Mike J., 1998. "Australian quarantine post the Nairn Review," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 42(4), December.
    5. James, Sallie & Anderson, Kym, 1998. "On the need for more economic assessment of quarantine/SPS policies," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 42(4), December.
    6. MacLaren, Donald, 1997. "Uncertainty Aversion and Technical Barriers to Trade: An Australian Example," 1995: Understanding Technical Barriers to Agricultural Trade Conference, December 1995, Tucson, Arizona 51388, International Agricultural Trade Research Consortium.
    7. Tanner, Carolyn & Nairn, Malcolm, 1997. "Principles of Australian Quarantine," 1997 Conference (41st), January 22-24, 1997, Gold Coast, Australia 135413, Australian Agricultural and Resource Economics Society.
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