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Global trade and food safety - winners and losers in a fragmented system

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  • Wilson, John S.
  • Otsuki, Tsunehiro

Abstract

Food safety standards, and the tradeoff between these standards, and agricultural export growth, are at the forefront of the trade policy debate. How food safety is addressed in the world trade system, is critical for developing countries that continue to rely on agricultural exports. In a fragmented system of conflicting national food safety standards, and no globally accepted standards, export prospects for the least developed countries, can be severely limited. The authors examine the impact that adopting international food safety standards, and harmonizing standards would have on global food trade patterns. They estimate the effect of aflatoxin standards in fifteen importing countries (including four developing countries) on exports from thirty one countries (twenty one of them developing). Aflatoxin is a natural substance that can contaminate certain nuts, and grains when storage, and drying facilities are inadequate. The analysis shows that adopting a worldwide standard for aflatoxin B1 (potentially the most toxic of aflatoxins) based on current international guidelines, would increase nut, and cereal trade among the countries studied, by $ 6.1 billion, compared with 1998 levels. This harmonization of standards would increase world exports by $ 38.8 billion.

Suggested Citation

  • Wilson, John S. & Otsuki, Tsunehiro, 2001. "Global trade and food safety - winners and losers in a fragmented system," Policy Research Working Paper Series 2689, The World Bank.
  • Handle: RePEc:wbk:wbrwps:2689
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    References listed on IDEAS

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    2. Thornsbury, Suzanne & Roberts, Donna & DeRemer, Kate & Orden, David, 1997. "A First Step in Understanding Technical Barriers to Agricultural Trade," 1997 Conference, August 10-16, 1997, Sacramento, California 197066, International Association of Agricultural Economists.
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    5. 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.
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    Citations

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    Cited by:

    1. Olper, Alessandro & Raimondi, Valentina, 2008. "Agricultural market integration in the OECD: A gravity-border effect approach," Food Policy, Elsevier, vol. 33(2), pages 165-175, April.
    2. Olper, Alessandro & Raimondi, Valentina, 2004. "The border effect in agricultural markets between European Union, OECD and LDC countries," 85th Seminar, September 8-11, 2004, Florence, Italy 37817, European Association of Agricultural Economists.
    3. Wilson, John S. & Otsuki, Tsunehiro, 2004. "To spray or not to spray: pesticides, banana exports, and food safety," Food Policy, Elsevier, vol. 29(2), pages 131-146, April.
    4. Andy Thorpe & Catherine Robinson, 2004. "When goliaths clash: US and EU differences over the labeling of food products derived from genetically modified organisms," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 21(4), pages 287-298, January.
    5. Neeliah, Harris & Neeliah, Shalini Amnee, 2014. "Changing Agro-food Export Composition and SPS Compliance: Lessons for Mauritius," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 0(Number 1), pages 1-23.
    6. Yuan Li & John C. Beghin, 2017. "A meta-analysis of estimates of the impact of technical barriers to trade," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 4, pages 63-77 World Scientific Publishing Co. Pte. Ltd..
    7. Lionel Fontagné & Friedrich von Kirchbach & Mondher Mimouni, 2005. "An Assessment of Environmentally- related Non-tariff Measures," The World Economy, Wiley Blackwell, vol. 28(10), pages 1417-1439, October.
    8. Itzhak Goldberg & Lee Branstetter & John Gabriel Goddard & Smita Kuriakose, 2008. "Globalization and Ttechnology Absorption in Europe and Central Asia : The Role of Trade, FDI, and Cross-Border Knowledge Flows," World Bank Publications, The World Bank, number 6445, November.
    9. Nyangito, Hezron Omare, 2004. "Performance of African Agricultural Exports and External Market Access Conditions under International Trade Reforms," 2004 Inaugural Symposium, December 6-8, 2004, Nairobi, Kenya 9518, African Association of Agricultural Economists (AAAE).
    10. Olper, Alessandro & Raimondi, Valentina, 2005. "Access to OECD Agricultural Market: A Gravity Border Effect Approach," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24543, European Association of Agricultural Economists.
    11. Gayi, Samuel K., 2006. "Does the WTO Agreement on Agriculture Endanger Food Security in Sub-Saharan Africa?," WIDER Working Paper Series 060, World Institute for Development Economic Research (UNU-WIDER).

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