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Consumer Effects Of Harmonizing International Standards For Trade In Organic Foods

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  • Lohr, Luanne
  • Krissoff, Barry

Abstract

Even if governments agree on equivalency of organic standards across countries, consumers may still believe domestically produced organic foods are superior to imports. We simulated a partial equilibrium model of trade in organic wheat between the United States and Germany to illustrate the welfare gains and losses associated with international harmonization of organic standards. Six cases were examined - no equivalency in standards (the status quo), equivalency of standards with complete and incomplete import acceptance, exporters certifying in importing country with complete and incomplete import acceptance, and exporters paying educational costs, with incomplete import acceptance. Results demonstrate that importing country consumers are better off if they are willing to accept imports as equivalent to domestically produced organic foods. Strategies to reduce resistance such as educational programs or foreign certification add costs to production that reduce quantity traded and impose welfare losses on exporting country producers and importing country consumers.

Suggested Citation

  • Lohr, Luanne & Krissoff, Barry, 2001. "Consumer Effects Of Harmonizing International Standards For Trade In Organic Foods," Faculty Series 16726, University of Georgia, Department of Agricultural and Applied Economics.
  • Handle: RePEc:ags:ugeofs:16726
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    File URL: http://purl.umn.edu/16726
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    References listed on IDEAS

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    1. Loren W. Tauer, 1994. "The value of segmenting the milk market into bST-Produced and Non-bST-Produced milk," Agribusiness, John Wiley & Sons, Ltd., vol. 10(1), pages 3-12.
    2. Lohr, Luanne, 1998. "Welfare Effects Of Eco-Label Proliferation: Too Much Of A Good Thing?," Faculty Series 16642, University of Georgia, Department of Agricultural and Applied Economics.
    3. Luanne Lohr, 1998. "Implications of Organic Certification for Market Structure and Trade," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1125-1129.
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    Cited by:

    1. Stephan Marette & Roxanne Clemens & Bruce Babcock, 2008. "Recent international and regulatory decisions about geographical indications," Agribusiness, John Wiley & Sons, Ltd., vol. 24(4), pages 453-472.
    2. Sawyer, Erin N. & Kerr, William A. & Hobbs, Jill E., 2008. "Consumer preferences and the international harmonization of organic standards," Food Policy, Elsevier, vol. 33(6), pages 607-615, December.
    3. Lohr, Luanne, 2001. "Factors Affecting International Demand And Trade In Organic Food Products," Faculty Series 16674, University of Georgia, Department of Agricultural and Applied Economics.

    More about this item

    Keywords

    International Relations/Trade;

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