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Food Safety Incidents, Collateral Damage and Trade Policy Responses: China-Canada Agri-Food Trade

Author

Listed:
  • Liu, Huanan
  • Hobbs, Jill E.
  • Kerr, William A.

Abstract

As markets become globalized, food safety policy and international trade policy are increasingly intertwined. Globalization also means that food safety incidents are widely reported internationally. One result is that food safety incidents can negatively impact products where no food safety issue exists as consumers lose trust in both foreign and domestic food safety institutions. While the policy framework for dealing with directly effected imported foods is well understood, how to deal with the market failure associated with indirectly affected products within the existing trade policy rules has not been explored. Using the example of China’s 2007 problems with a spate of products safety incidents, a theoretical framework is developed and the response of both the Chinese and Canadian governments analyzed. A cooperative approach to the issues appears to have a number of advantages and does not contravene trade policy commitments.

Suggested Citation

  • Liu, Huanan & Hobbs, Jill E. & Kerr, William A., 2008. "Food Safety Incidents, Collateral Damage and Trade Policy Responses: China-Canada Agri-Food Trade," Working Papers 43463, Canadian Agricultural Trade Policy Research Network.
  • Handle: RePEc:ags:catpwp:43463
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    File URL: http://purl.umn.edu/43463
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    Cited by:

    1. Zhou, Jiehong & Yue, Chengyan, 2010. "Investigating Chinese Vegetable Processing Firms’ Economic Incentives to Enhance Quality and Safety Controls," Journal of Food Distribution Research, Food Distribution Research Society, vol. 41(3), November.

    More about this item

    Keywords

    Canada; China; cooperation; food safety; market failure; trade policy; Agricultural and Food Policy; International Development; International Relations/Trade;

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