IDEAS home Printed from https://ideas.repec.org/a/wly/apecpp/v47y2025i3p1209-1231.html

Are veterinary drug maximum residue limits protectionist? International evidence

Author

Listed:
  • Akinbode Okunola
  • Elliott Dennis
  • John Beghin

Abstract

We analyze the distribution of maximum residue limits (MRLs) on veterinary drugs used in animal production and aquaculture in a global context of food consumption and trade. We compare MRLs by drug‐product pairs for a large set of countries, commodities, and drugs. International standards by Codex cover a small fraction (27%) of existing drug‐product pairs. When Codex MRLs exist, deviations from Codex MRLs are minimal. Little protectionism prevails overall, although countries with a larger presence in world markets and with larger net imports in the regulated commodity have stricter standards. Higher variation prevails when Codex standards do not exist. MRLs exhibit an anti‐protectionist lower tail that is fatter than that of those MRLs for which Codex has a standard. Increasing the institutional capacity of Codex Alimentarius for establishing a larger set of MRLs is likely to facilitate greater alignment of MRLs across countries. We highlight the leading regulatory roles of Codex, the European Union, and the United States in helping set MRLs for other countries to which 41, 6, and 5 countries fully defer, respectively.

Suggested Citation

  • Akinbode Okunola & Elliott Dennis & John Beghin, 2025. "Are veterinary drug maximum residue limits protectionist? International evidence," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 47(3), pages 1209-1231, July.
    • Handle: RePEc:wly:apecpp:v:47:y:2025:i:3:p:1209-1231
    DOI: 10.1002/aepp.13516
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/aepp.13516
    Download Restriction: no
    File URL: https://libkey.io/10.1002/aepp.13516?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Simon W. Schlueter & Christine Wieck & Thomas Heckelei, 2009. "Regulatory Policies in Meat Trade: Is There Evidence for Least Trade-distorting Sanitary Regulations?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(5), pages 1484-1490.
    2. Hejazi, Mina & Grant, Jason H. & Peterson, Everett, 2022. "Trade impact of maximum residue limits in fresh fruits and vegetables," Food Policy, Elsevier, vol. 106(C).
    3. Achterbosch, Thom J. & Engler, Alejandra & Rau, Marie-Luise & Toledo, Roger, 2009. "Measure the measure: the impact of differences in pesticide MRLs on Chilean fruit exports to the EU," 2009 Conference, August 16-22, 2009, Beijing, China 51765, International Association of Agricultural Economists.
    4. Roberts, Donna, 1998. "Preliminary Assessment of the Effects of the WTO Agreement on Sanitary and Phytosanitary Trade Regulations," Journal of International Economic Law, Oxford University Press, vol. 1(3), pages 377-405, September.
    5. Vincent Chatellier, 2021. "Review: International trade in animal products and the place of the European Union: main trends over the last 20 years," Post-Print hal-03718326, HAL.
    6. Anne-Célia Disdier & Stéphan Marette, 2010. "The Combination of Gravity and Welfare Approaches for Evaluating Nontariff Measures," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(3), pages 713-726.
    7. Barrett, Christopher B. & Yang, Yi-Nung, 2001. "Rational incompatibility with international product standards," Journal of International Economics, Elsevier, vol. 54(1), pages 171-191, June.
    8. Myriam Carrère & Federica DeMaria & Sophie Drogué, 2018. "Maximum residual levels of pesticides and public health: best friends or faux amis?," Agricultural Economics, International Association of Agricultural Economists, vol. 49(1), pages 111-118, January.
    9. Nhuong Tran & Anh Nguyen & Norbert L.W. Wilson, 2014. "The Differential Effects of Food Safety Regulations on Animal Products Trade: The Case of Crustacean Product Trade," Agribusiness, John Wiley & Sons, Ltd., vol. 30(1), pages 31-45, January.
    10. William C. Ridley & Jeff Luckstead & Stephen Devadoss, 2024. "Impacts of tariffs and NTMs on beef, pork and poultry trade," Journal of Agricultural Economics, Wiley Blackwell, vol. 75(2), pages 546-572, June.
    11. May T. Yeung & William A. Kerr & Blair Coomber & Matthew Lantz & Alyse McConnell, 2017. "Declining International Cooperation on Pesticide Regulation," Palgrave Studies in Agricultural Economics and Food Policy, Palgrave Macmillan, number 978-3-319-60552-4, April.
    12. Fischer, Ronald & Serra, Pablo, 2000. "Standards and protection," Journal of International Economics, Elsevier, vol. 52(2), pages 377-400, December.
    13. Niven Winchester & Marie-Luise Rau & Christian Goetz & Bruno Larue & Tsunehiro Otsuki & Karl Shutes & Christine Wieck & Heloisa L. Burnquist & Maurício J. Pinto de Souza & Rosane Nunes de Faria, 2012. "The Impact of Regulatory Heterogeneity on Agri-food Trade," The World Economy, Wiley Blackwell, vol. 35(8), pages 973-993, August.
    14. 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.
    15. Drogué, Sophie & DeMaria, Federica, 2012. "Pesticide residues and trade, the apple of discord?," Food Policy, Elsevier, vol. 37(6), pages 641-649.
    16. Bo Chen & Yiming Chen & Siqi Zhang, 2024. "The effect of maximum residue limit standards on China's agri‐food exports: A health perspective," Review of International Economics, Wiley Blackwell, vol. 32(4), pages 1698-1725, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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..
    2. Yuan Li & John C. Beghin, 2017. "Protectionism indices for non-tariff measures: An application to maximum residue levels," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 10, pages 167-178, World Scientific Publishing Co. Pte. Ltd..
    3. Santeramo, Fabio G., "undated". "On Non-Tariff Measures and Changes in Trade Routes: From North-North to South-South Trade?," 2017: Globalization Adrift, December 3-5, 2017, Washington, D.C. 266809, International Agricultural Trade Research Consortium.
    4. Hejazi, Mina & Grant, Jason H. & Peterson, Everett, 2022. "Trade impact of maximum residue limits in fresh fruits and vegetables," Food Policy, Elsevier, vol. 106(C).
    5. Annalisa Zezza & Federica Demaria & Maria Rosaria Pupo d'Andrea & Jo Swinnen & Giulia Meloni & Senne Vandevelde & Alessandro Olper & Daniele Curzi & Valentina Raimondi & Sophie Drogue, 2018. "Research for AGRI Committee - Agricultural trade: assessing reciprocity of standards," Working Papers hal-02787948, HAL.
    6. Chen, Rui & Wilson, Norbert L.W., "undated". "The Impact of Regulatory Similarity on the Seafood Trade," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259204, Agricultural and Applied Economics Association.
    7. Adrián Rabadán & Ángela Triguero, 2021. "Influence of food safety standards on trade: Evidence from the pistachio sector," Agribusiness, John Wiley & Sons, Ltd., vol. 37(3), pages 489-514, July.
    8. José Manuel Álvarez Zárate (Editor), 2016. "¿Hacia dónde va América Latina respecto al derecho económico internacional?," Books, Universidad Externado de Colombia, Facultad de Derecho, number 860.
    9. Hejazi, Mina & Grant, Jason H. & Peterson, Everett, 2016. "Hidden Trade Costs? Maximum Residue Limits and US Exports to Trans-Atlantic and Trans-Pacific Trading Partners," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235847, Agricultural and Applied Economics Association.
    10. Kareem, Fatima Olanike & Martinez-Zarzoso, Inmaculada & Brümmer, Bernhard, 2016. "Fitting the Gravity Model when Zero Trade Flows are Frequent: a Comparison of Estimation Techniques using Africa's Trade Data," GlobalFood Discussion Papers 230588, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    11. Choi, Jong Woo & Yue, Chengyan, . "Investigating the impact of maximum residue limit standards on the vegetable trade in Japan," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(01).
    12. Myriam Carrère & Federica DeMaria & Sophie Drogué, 2018. "Maximum residual levels of pesticides and public health: best friends or faux amis?," Agricultural Economics, International Association of Agricultural Economists, vol. 49(1), pages 111-118, January.
    13. Grant, Jason & Arita, Shawn, "undated". "Sanitary and Phyto-Sanitary Measures: Assessment, Measurement, and Impact," Commissioned Papers 259417, International Agricultural Trade Research Consortium.
    14. Federica DeMaria & Sophie Drogue, 2017. "EU Trade Regulation for Baby Food: Protecting Health or Trade?," The World Economy, Wiley Blackwell, vol. 40(7), pages 1430-1453, July.
    15. Boza, Sofía, 2013. "Assessing the impact of sanitary, phytosanitary and technical requirements on food and agricultural trade: what does current research tell us?," Papers 926, World Trade Institute.
    16. Dela-Dem Doe Fiankor & Daniele Curzi & Alessandro Olper, 2021. "Trade, price and quality upgrading effects of agri-food standards [Endogenous Trade Policy with Heterogeneous Firms]," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 48(4), pages 835-877.
    17. 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.
    18. Fabio Gaetano Santeramo & Emilia Lamonaca, 2019. "The Effects of Non‐tariff Measures on Agri‐food Trade: A Review and Meta‐analysis of Empirical Evidence," Journal of Agricultural Economics, Wiley Blackwell, vol. 70(3), pages 595-617, September.
    19. Federica Demaria & Sophie S. Drogue, 2012. "Protéger la santé ou le commerce un dilemme pour les aliments pour bébés," Post-Print hal-02745379, HAL.
    20. Fabio Gaetano Santeramo & Valentina Guerrieri & Emilia Lamonaca, 2018. "On the Evolution of Trade and Sanitary and Phytosanitary Standards: The Role of Trade Agreements," Agriculture, MDPI, vol. 9(1), pages 1-15, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:apecpp:v:47:y:2025:i:3:p:1209-1231. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)2040-5804 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.