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Global trade and food safety - winners and losers in a fragmented system

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  • Wilson, John S.
  • Otsuki, Tsunehiro

Abstract

Food safety standards, and the tradeoff between these standards, and agricultural export growth, are at the forefront of the trade policy debate. How food safety is addressed in the world trade system, is critical for developing countries that continue to rely on agricultural exports. In a fragmented system of conflicting national food safety standards, and no globally accepted standards, export prospects for the least developed countries, can be severely limited. The authors examine the impact that adopting international food safety standards, and harmonizing standards would have on global food trade patterns. They estimate the effect of aflatoxin standards in fifteen importing countries (including four developing countries) on exports from thirty one countries (twenty one of them developing). Aflatoxin is a natural substance that can contaminate certain nuts, and grains when storage, and drying facilities are inadequate. The analysis shows that adopting a worldwide standard for aflatoxin B1 (potentially the most toxic of aflatoxins) based on current international guidelines, would increase nut, and cereal trade among the countries studied, by $ 6.1 billion, compared with 1998 levels. This harmonization of standards would increase world exports by $ 38.8 billion.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2689.

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Date of creation: 31 Oct 2001
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Handle: RePEc:wbk:wbrwps:2689

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Keywords: Food&Beverage Industry; Health Economics&Finance; Labor Policies; Environmental Economics&Policies; Economic Theory&Research; Environmental Economics&Policies; TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT; Health Economics&Finance; Food&Beverage Industry; Economic Theory&Research;

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References

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  1. Hooker, Neal H., 1999. "Food safety regulation and trade in food products," Food Policy, Elsevier, vol. 24(6), pages 653-668, December.
  2. Petrey, L.A. & Johnson, R.W.M., 1993. "Agriculture in the Uruguay Round: Sanitary and Phytosanitary Measures," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 61(03), December.
  3. Henson, Spencer & Caswell, Julie, 1999. "Food safety regulation: an overview of contemporary issues," Food Policy, Elsevier, vol. 24(6), pages 589-603, December.
  4. Swann, Peter & Temple, Paul & Shurmer, Mark, 1996. "Standards and Trade Performance: The UK Experience," Economic Journal, Royal Economic Society, vol. 106(438), pages 1297-1313, September.
  5. Tsunehiro Otsuki & John S. Wilson, 2001. "What price precaution? European harmonisation of aflatoxin regulations and African groundnut exports," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 28(3), pages 263-284, October.
  6. 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.
  7. Hooker, Neal H. & Caswell, Julie A., 1995. "Regulatory Targets And Regimes For Food Safety: A Comparison Of North American And European Approaches," Proceedings: The Economics of Reducing Health Risk from Food, June 6-7, 1995, Washington, D.C. 25964, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
  8. Roberts, Donna & Unnevehr, Laurian J. & Caswell, Julie A. & Sheldon, Ian M. & Wilson, John S. & Otsuki, Tsunehiro & Orden, David, 2001. "The Role Of Product Attributes In The Agricultural Negotiations," Commissioned Papers 14620, International Agricultural Trade Research Consortium.
  9. Antle, John M., 1999. "Benefits and costs of food safety regulation," Food Policy, Elsevier, vol. 24(6), pages 605-623, December.
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Citations

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Cited by:
  1. Olper, Alessandro & Raimondi, Valentina, 2005. "Access to OECD Agricultural Market: A Gravity Border Effect Approach," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24543, European Association of Agricultural Economists.
  2. 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.
  3. Olper, Alessandro & Raimondi, Valentina, 2008. "Agricultural market integration in the OECD: A gravity-border effect approach," Food Policy, Elsevier, vol. 33(2), pages 165-175, April.
  4. Andy Thorpe & Catherine Robinson, 2004. "When goliaths clash: US and EU differences over the labeling of food products derived from genetically modified organisms," Agriculture and Human Values, Springer, vol. 21(4), pages 287-298, January.
  5. Itzhak Goldberg & Lee Branstetter & John Gabriel Goddard & Smita Kuriakose, 2008. "Globalization and Ttechnology Absorption in Europe and Central Asia : The Role of Trade, FDI, and Cross-Border Knowledge Flows," World Bank Publications, The World Bank, number 6445, October.
  6. Li, Yuan & Beghin, John C., 2010. "A Meta-Analysis of Estimates of the Impact of Technical Barriers to Trade," Staff General Research Papers 31968, Iowa State University, Department of Economics.
  7. Nyangito, Hezron Omare, 2004. "Performance of African Agricultural Exports and External Market Access Conditions under International Trade Reforms," 2004 Inaugural Symposium, December 6-8, 2004, Nairobi, Kenya 9518, African Association of Agricultural Economists (AAAE).
  8. Gayi, Samuel K., 2006. "Does the WTO Agreement on Agriculture Endanger Food Security in Sub-Saharan Africa?," Working Paper Series RP2006/60, World Institute for Development Economic Research (UNU-WIDER).
  9. Olper, Alessandro & Raimondi, Valentina, 2004. "The border effect in agricultural markets between European Union, OECD and LDC countries," 85th Seminar, September 8-11, 2004, Florence, Italy 37817, European Association of Agricultural Economists.

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