Effects of Food Safety Standards on Seafood Exports to US, EU and Japan
Estimating the panel gravity model with bilateral pair and country-by-time fixed-effects separately for each seafood product, we found that food safety regulations have differential effects across seafood products. In all three industrialized markets, shrimp is most sensitive, while fish is the least sensitive to changing food safety policies. The enforcement of the US HACCP, the EU Minimum Required Performance Level and the Japanese Food Safety Basic Law caused a loss of 90.45%, 99.47%, and 99.97% to shrimp trade in these markets, and a reduction associated with fish trade was 66.71%, 82.83%, and 89.32%.
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