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Balancing Food Safety And Risk: Do Drug Residue Limits Affect International Trade In Beef?

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  • Wilson, John S.
  • Otsuki, Tsunehiro
  • Majumdar, Baishali

Abstract

There have been a number of high profile food safety disputes in trade over the past decade. These include the widely publicized dispute at the World Trade Organization between the U.S. and EU over hormone treated beef. Consumers in some industrialized countries have also 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 both how disputes are settled, 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 trade affect 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 by $200 million, and Argentina's by over $300 million.

Suggested Citation

  • Wilson, John S. & Otsuki, Tsunehiro & Majumdar, Baishali, 2003. "Balancing Food Safety And Risk: Do Drug Residue Limits Affect International Trade In Beef?," 2003 Annual meeting, July 27-30, Montreal, Canada 21971, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea03:21971
    DOI: 10.22004/ag.econ.21971
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    References listed on IDEAS

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    1. 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.
    2. Office of Health Economics, 1969. "Antibiotics in Animal Husbandry," Series on Health 000158, Office of Health Economics.
    3. Debackere, M., 1997. "Basic analytical toxicology : R. Flanagan, R. Braithwaite, S. Brown, B. Widdop, F. de Wolff. World Health Organization, Geneva, 1995, Sw.fr. 60.-. ISBN 92-4-154458-9," Health Policy, Elsevier, vol. 39(3), pages 256-257, March.
    4. 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.
    5. 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.
    6. Aitken, Norman D, 1973. "The Effect of the EEC and EFTA on European Trade: A Temporal Cross-Section Analysis," American Economic Review, American Economic Association, vol. 63(5), pages 881-892, December.
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