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Combining Risk Assessment and Economics in Managing a Sanitary-Phytosanitary Risk

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  • Norbert L. W. Wilson
  • Jesús Antón

Abstract

The Agreement on the Application of Sanitary and Phytosanitary (SPS) Measures provides guidelines for countries to protect domestic production from pests and diseases. The guidelines permit consideration of consumer welfare. We find an optimal set of SPS measures considering total welfare and mitigation strategies. Our model suggests that it is optimal and less restrictive to apply mitigation strategies first and then an additional smaller tariff if necessary. Relative cost of mitigation determines the amount of the mitigation strategies applied in the importing and exporting countries. Copyright 2006, Oxford University Press.

Suggested Citation

  • Norbert L. W. Wilson & Jesús Antón, 2006. "Combining Risk Assessment and Economics in Managing a Sanitary-Phytosanitary Risk," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(1), pages 194-202.
  • Handle: RePEc:oup:ajagec:v:88:y:2006:i:1:p:194-202
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    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2006.00847.x
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    Citations

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    Cited by:

    1. Frank van Tongeren & John Beghin & Stéphane Marette, 2009. "A Cost-Benefit Framework for the Assessment of Non-Tariff Measures in Agro-Food Trade," OECD Food, Agriculture and Fisheries Papers 21, OECD Publishing.
    2. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 2, pages 13-38 World Scientific Publishing Co. Pte. Ltd..
    3. Ferrier, Peyton, 2010. "Irradiation as a quarantine treatment," Food Policy, Elsevier, vol. 35(6), pages 548-555, December.
    4. Olson, Lars J. & Roy, Santanu, 2010. "Dynamic sanitary and phytosanitary trade policy," Journal of Environmental Economics and Management, Elsevier, vol. 60(1), pages 21-30, July.
    5. Saggi, Kamal & Wu, Mark, 2017. "Trade and Agricultural Disease: Import Restrictions in the Wake of the India–Agricultural Products Dispute," World Trade Review, Cambridge University Press, vol. 16(02), pages 279-302, April.
    6. Lawley, Chad, 2008. "Non-indigenous Species and Preemptive Trade Policy," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6111, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Schlueter, Simon W. & Wieck, Christine & Heckelei, Thomas, 2009. "Regulatory SPS instruments in meat trade," Discussion Papers 56972, University of Bonn, Institute for Food and Resource Economics.
    8. Rickard, Bradley J. & Lei, Lei, 2010. "How important are sanitary and phytosanitary barriers in international markets for fresh fruit?," Working Papers 126974, Cornell University, Department of Applied Economics and Management.
    9. Wilson, Norbert L. W., 2017. "Labels, Food Safety, and International Trade," ADBI Working Papers 657, Asian Development Bank Institute.

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