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

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  • John Wilson
  • Tsunehiro Otsuki
  • Baishali Majumdsar

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.

Suggested Citation

  • John Wilson & Tsunehiro Otsuki & Baishali Majumdsar, 2003. "Balancing food safety and risk: do drug residue limits affect international trade in beef?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 12(4), pages 377-402.
  • Handle: RePEc:taf:jitecd:v:12:y:2003:i:4:p:377-402
    DOI: 10.1080/0963819032000154810
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    References listed on IDEAS

    as
    1. Maskus, Keith E. & Wilson, John S. & Tsunehiro Otsuki, 2000. "Quantifying the impact of technical barriers to trade : a framework for analysis," Policy Research Working Paper Series 2512, The World Bank.
    2. 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.
    3. 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.
    4. Spencer Henson & Mario Mazzocchi, 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, Agricultural and Applied Economics Association, vol. 84(2), pages 370-386.
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