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Quantifying the Trade Effect of Sanitary and Phytosanitary Regulations of OECD Countries on South African Food Exports

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  • Gebrehiwet, Yemane
  • Ngqangweni, Simphiwe
  • Kirsten, Johann F.

Abstract

Stringent sanitary and phytosanitary standards (SPS) have proliferated in the aftermath of the Uruguay Round Agreement on Agriculture (URAA). These standards are currently becoming a major stumbling block in agricultural trade for developing countries. Limited by inadequate resources and expertise, among other things, these countries also have poor participation rate in discussions related to SPS that impedes the representation of their interests and concerns in setting international standards for agricultural products. Using a gravity model, this paper estimates the trade effect of total aflatoxin level set by five OECD countries (Ireland, Italy, Sweden, Germany and USA), on South African food exports. The findings support the hypotheses that stringent SPS standards are limiting trade markedly. The trade elasticity of aflatoxin standard is 0.41 and statistically significant. Moreover, the simulation result based on the assumption that these five OECD countries adopt the total aflatoxin level recommended by CODEX, shows that South Africa would have gained an estimated additional amount of US$ 69 million per year from food exports to these countries from 1995 to 1999.

Suggested Citation

  • Gebrehiwet, Yemane & Ngqangweni, Simphiwe & Kirsten, Johann F., 2007. "Quantifying the Trade Effect of Sanitary and Phytosanitary Regulations of OECD Countries on South African Food Exports," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 46(1), March.
  • Handle: RePEc:ags:agreko:10127
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    Cited by:

    1. repec:wsi:wschap:9789813144415_0004 is not listed on IDEAS
    2. Yuan Li & John C. Beghin, 2017. "A meta-analysis of estimates of the impact of technical barriers to trade," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 4, pages 63-77 World Scientific Publishing Co. Pte. Ltd..
    3. Grant, Jason & Peterson, Everett & Ramniceanu, Radu, 2015. "Assessing the Impact of SPS Regulations on U.S. Fresh Fruit and Vegetable Exports," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(1), January.
    4. Kareem, Fatima Olanike & Martinez-Zarzoso, Inmaculada & Brümmer, Bernhard, 2016. "Protecting Health or Protecting Imports? Evidence from EU Non-Tariff Barriers," Discussion Papers 241267, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    5. Karov, Vuko & Roberts, Donna & Grant, Jason H. & Peterson, Everett B., 2009. "A Preliminary Empirical Assessment of the Effect of Phytosanitary Regulations on US Fresh Fruit and Vegetable Imports," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49345, Agricultural and Applied Economics Association.
    6. repec:bla:reviec:v:25:y:2017:i:5:p:1105-1129 is not listed on IDEAS
    7. Neeliah, Shalini A. & Neeliah, Harris & Goburdhun, Daya, 2013. "Assessing the relevance of EU SPS measures to the food export sector: Evidence from a developing agro-food exporting country," Food Policy, Elsevier, vol. 41(C), pages 53-62.
    8. repec:ksp:journ1:v:4:y:2017:i:3:p:263-274 is not listed on IDEAS
    9. Pramila Crivelli & Jasmin Groeschl, 2016. "The Impact of Sanitary and Phytosanitary Measures on Market Entry and Trade Flows," The World Economy, Wiley Blackwell, vol. 39(3), pages 444-473, March.
    10. Engler, Alejandra & Nahuelhual, Laura & Cofré, Gabriela & Barrena, Jose, 2012. "How far from harmonization are sanitary, phytosanitary and quality-related standards? An exporter’s perception approach," Food Policy, Elsevier, vol. 37(2), pages 162-170.
    11. Neeliah, Harris & Neeliah, Shalini Amnee, 2014. "Changing Agro-food Export Composition and SPS Compliance: Lessons for Mauritius," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 15(1).
    12. Eyal RONEN, 2017. "Quantifying the trade effects of NTMs: A review of the empirical literature," Journal of Economics and Political Economy, KSP Journals, vol. 4(3), pages 263-274, September.
    13. Melo, Oscar & Engler, Alejandra & Nahuehual, Laura & Cofre, Gabriela & Barrena, José, 2014. "Do Sanitary, Phytosanitary, and Quality-related Standards Affect International Trade? Evidence from Chilean Fruit Exports," World Development, Elsevier, vol. 54(C), pages 350-359.
    14. repec:eee:reveco:v:53:y:2018:i:c:p:185-202 is not listed on IDEAS
    15. Coslovsky, Salo V., 2014. "Economic Development without Pre-Requisites: How Bolivian Producers Met Strict Food Safety Standards and Dominated the Global Brazil-Nut Market," World Development, Elsevier, vol. 54(C), pages 32-45.
    16. Salamat Ali, 2016. "Export Response to Sanitary and Phytosanitary Measures and Technical Barriers to Trade: Firm-level Evidence from a Developing Country," Discussion Papers 2016-02, University of Nottingham, CREDIT.

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