Consumer Effects Of Harmonizing International Standards For Trade In Organic Foods
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.
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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Loren W. Tauer, 1994.
"The value of segmenting the milk market into bST-Produced and Non-bST-Produced milk,"
John Wiley & Sons, Ltd., vol. 10(1), pages 3-12.
- Tauer, Loren W., 1992. "The Value of Segmenting the Milk Market into bST-Produced and Non-bST-Produced Milk," Working Papers 128119, Cornell University, Department of Applied Economics and Management.
- 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. Full references (including those not matched with items on IDEAS)