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« Comparing apples with pears. How differences in pesticide residues regulations impact trade? »

  • Drogué, S.
  • DeMaria, F.

The impact of food safety standards on international trade has already been addressed. Generally, economists try to assess trade losses borne by exporters when importing countries impose stricter regulations. In this paper we assess the impact of the Maximum Residue Levels (MRL) of pesticides on the trade of apples and pears. Rather than focusing on a particular pesticide we take into account the entire list of substances set out by the various regulations with the aim of understanding how the similarity (or dissimilarity) of these can affect trade. Most studies assess the impact of sanitary standard regulations introducing directly in the analysis the MLR put in force in the importing country. We assume that what can be crucial is the difference in the tolerance levels of both the importing and exporting country. Having built a similarity index we then introduce it into a gravity equation to assess the impact of differences in MRL of pesticides on the trade of apples and pears of seven exporting and seven importing countries. Results suggest that harmonizing regulations impacts trade differently depending on the exporter. ...French Abstract : L’impact sur le commerce international des standards de sécurité alimentaire a souvent éte étudié. Généralement les économistes essaient d’évaluer les pertes supportées par les exportateurs quand les pays importateurs imposent des réglementations plus strictes. Dans cet article, nous évaluons l’impact des Limites Maximales de Résidus (LMR) de pesticides sur le commerce de pommes et de poires. Plutôt que de se focaliser sur un pesticide en particulier, nous prenons en considération la liste complète des substances établie par les diverses réglementations avec pour but de comprendre comment les similarités (ou différences) entre elles affectent le commerce. La plupart des études évaluent l’impact des réglementations sanitaires en introduisant directement dans l’analyse le LMR en vigueur dans le pays importateur. Nous faisons l’hypothèse que ce qui importe c’est plutôt la différence entre les niveaux de tolérance du pays exportateur et importateur. Après avoir construit un indice de similarité, nous l’introduisons dans une équation de gravité pour évaluer l’impact sur le commerce de pommes et poires des différences entre niveaux acceptables de résidus de pesticides pour sept pays exportateurs et sept pays importateurs. Les résultats suggèrent qu’harmoniser les réglementations aurait un impact différent selon le pays exportateur.

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Paper provided by UMR MOISA : Marchés, Organisations, Institutions et Stratégies d'Acteurs : CIHEAM-IAMM, CIRAD, INRA, Montpellier SupAgro, IRD - Montpellier, France in its series Working Papers MOISA with number 201201.

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Date of creation: 2012
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Handle: RePEc:umr:wpaper:201201
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  1. Wilson, John S. & Tsunehiro Otsuki, 2002. "To spray or not to spray? - pesticides, banana exports, and food safety," Policy Research Working Paper Series 2805, The World Bank.
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  13. Burger, M.J. & van Oort, F.G. & Linders, G.J.M., 2009. "On the Specification of the Gravity Model of Trade: Zeros, Excess Zeros and Zero-Inflated Estimation," ERIM Report Series Research in Management ERS-2009-003-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
  14. Tsunehiro Otsuki & John S. Wilson, 2001. "What price precaution? European harmonisation of aflatoxin regulations and African groundnut exports," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 28(3), pages 263-284, October.
  15. Mullahy, John, 1986. "Specification and testing of some modified count data models," Journal of Econometrics, Elsevier, vol. 33(3), pages 341-365, December.
  16. Xiong, Bo & Beghin, John C., 2010. "Does European Aflatoxin Regulation Hurt Groundnut Exporters from Africa?," Staff General Research Papers 31595, Iowa State University, Department of Economics.
  17. Mauro Vigani & Valentina Raimondi & Alessandro Olper, 2010. "GMO Regulations, International Trade and the Imperialism of Standards," LICOS Discussion Papers 25510, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  18. Winnie Mitullah, 2000. "Food Safety Requirements and Food Exports from Developing Countries: The Case of Fish Exports from Kenya to the European Union," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(5), pages 1159-1169.
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