Article

Impact of sanitary and phytosanitary standards on developing countries and the role of the SPS Agreement

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Abstract

This article addresses the role and impact of the General Agreement on Tariffs and Trade (GATT) Sanitary and Phytosanitary (SPS) Agreement on prospects for export trade by developing countries. The SPS Agreement aims to facilitate discussion under the aegis of the World Trade Organization (WTP). It provides an enquiry and dispute settlement procedure; it also offers certain concessions and aid to developing and least developed countries. The article presents data on participation and several objective measures of the way the Agreement works for developing countries. Participation in the Agreement by developing countries is relatively low, despite the fact that several current issues (for example aflatoxins, salmonella) impact directly on such countries. The article suggests ways that developing countries can benefit further from the operation of the SPS Agreement, and explores how the standards operated by certain countries might act as a trade barrier to exports from developing countries. [Econ-Lit citations: L660, F100, Q170] © 1999 John Wiley & Sons.

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... With the formation of the World Trade Organization and subsequent dismantling of traditional trade barriers such as tariffs, food safety standards have become a major tool in regulating trade in agricultural and food products. Despite an increased interest in food policy regulations globally (Disdier et al., 2008;Murina and Nicita, 2015;Crivelli and Groeschl., 2016;Kareem et al., 2017;Kareem, 2016;Wilson and Otsuki, 2004;Henson and Loader, 2001;Otsuki et al., 2001a,b;Henson and Jaffee., 2008;Henson and Loader, 1999;Henson et al., 2000a,b), to the best of our knowledge, there is a paucity of empirical research on the impact of food policy regulations on Cameroon's agricultural trade. To our knowledge, no study has investigated the impact of Sanitary and phytosanitary measures on Cameroon's cocoa exports at the 6-digit HS level. ...
... Several studies (Otsuki et al., 2001a;Henson et al., 2000a,b;Henson and Loader, 2001;Henson and Loader 1999;World Bank, 2005) have pointed to the fact that non-tariff measures such as SPS requirements can act as a disguised restriction to trade especially for developing countries. This is due to the inadequate technical and financial resources to comply with new laws, different methods of ensuring the protection of food, animals, compliance requirements on exporters which imposes costs such as the cost of modernizing the production system, processing, storage, and quality control equipment (Otsuki et al., 2001b;Henson et al., 2000a,b;Neeliah et al., 2012;Neeliah et al., 2013). ...
... This research borrows and adopts the methodological approach from Neeliah et al. (2012Neeliah et al. ( , 2013, Henson and Loader (1999), Henson et al. (2000a,b), and Nguyen and Jolly (2020). Face-to-face interviews using open-ended questionnaire were conducted with key informants in the cocoa sub-sector through in-depth structured and non-structured interviews with representatives from institutional stakeholders in the cocoa sub-sector namely: the Deputy Director of Internal Commercialisation at the National Cocoa and Coffee Board (NCCB); the Head of Service, Chemical and Organoleptic Analysis of the Central Laboratory for Analysis, Department of Quality and Sustainability of the NCCB; the Head, Development Department of the Cocoa and Coffee Inter-professional Council (CCIC); and the Head, Regional Delegation of the Ministry of Commerce (MINCOMMERCE) for the South West Region. ...
... Certainly, if it is today possible to buy fruits, vegetables, and flowers in places where they neither grow nor have ever been seen before, the international trade of plants and plant products comes with the risk of introducing organisms considered harmful to other plants and the environment of importing countries. (Henson and Loader, 1999 ;Jensen, 2002 ;Brazier, 2008 ;Roques et al., 2010 ;Macleod et al., 2010 ;EC, 2016). ...
... At a higher level, it is a question of whether or not interceptions (i.e., supply chain disruptions) are caused by a real deficiency in underdeveloped agricultural systems, or by protectionist measures aimed at EU domestique interests. This is based on the institutionally founded assumption that transparency leads to enhanced market access (especially) for the agricultural produce of developing world countries (Henson & Loader, 1999;Jensen, 2002, Downes, 2012. ...
... In effect, in the transition from the GATT to the WTO in the mid-1990s, as tariffs were being lowered and the use of other traditional barriers to trade were being disciplined by the agreements of the WTO, there was a growing concern that these were being substituted by technical measures such as sanitary and phytosanitary (SPS) (Jensen, 2002 Office International des Epizooties (OIE)) whose standards cover animal health and animal diseases transmittable to humans. Henson and Loader (1999) advised that while the SPS Agreement (which was considered in the 1997 revision of the IPPC) should provide a means for developing countries to overcome some of the inherent problems faced by them in international Agri-trade, evidence at the time seemed to suggest that developing countries were in fact adversely affected by measures which for various reasons they are unable to implement or by processes and institutions in which they are not effectively able to participate. In effect, they maintain that while participation is a key metric of the ability of developing countries to benefit from the Agreement, evidence showed low participation in areas such as notification, adoption of international standards, and attendance at meetings (Henson and Loader 1999). ...
Article
The horticultural industry in sub-Saharan Africa (SSA) has witnessed unprecedented growth in recent years, fuelled by increased demand for temperate fruits and vegetables in the European market. In Uganda, the introduction of Non-Traditional Agricultural Exports (NTAEs) in the post-civil war era (mid 1980s onwards) as an export diversification strategy was met with limited success attributed to agronomical, logistical, and institutional challenges that resulted in a relatively small and fragile horticultural industry, serving a limited market specialised in the ethnic/exotic food trade. However, in recent years, increased demand from the diaspora has created new opportunities for Uganda´s ethnic/exotic horticultural exports in a buoyant industry that has increased fourfold over the last two decades. Meanwhile, this renewed opportunity is threatened by EU/UK legislation targeting the introduction and spread of organisms considered harmful to the environment. The threat is manifested in the interception and destruction of consignments found to be infested by (regulated) organisms (notably the false coddling moth (FCM)). While being common to all SSA countries infested by the FCM, interceptions have been particularly high for Uganda over the last seven years, a period coinciding with the boom in its horticultural industry. Based on an instrumental case study design consisting of semi-structured interviews, document reviews, and participant observations, this research investigates the cause of interceptions in the Ugandan Horticultural Export Supply Chain, (fresh fruits & vegetables) and their relationship to the concept of transparency, which is increasingly core to agri-food chains. In line with the Global Value Chain (GVC) approach (Gereffi, 1999; 2005), it examines the response and outcomes resulting from attempts to comply with international public standards governing agricultural supply chains. Findings indicate that a combination of environmental (e.g., regulatory), people (e.g., literacy levels of Outgrowers), process (e.g., bureaucracy) and technological (e.g., lack of IT infrastructure) factors working together as inhibitors of transparency are to account for the rising wave of interceptions. Uganda´s response to interceptions, described in this study as the regulated integration (backwards) of supply chain relationships through the mandatory registration of producers is yielding results. This is in terms of enhanced capability development and supply chain transparency in a process described by the GVC literature as process upgrading. In so doing, the research contributes to the literature on supply chain transparency while suggesting a renewed focus of GVC research on the role of public standards (as opposed to private governance) in the upgrading and integration of developing countries in the world economy. The research is limited by the lack of a quantitative approach to validating findings that are essentially qualitative in nature. Future research involves the validation of transparency inhibitor matrix for the prioritisation of improvement initiatives in a quantitative study as well as an investigation of opportunities for improving Uganda´s phytosanitary certification process with distributed ledger technology.
... With the formation of the World Trade Organization and subsequent dismantling of traditional trade barriers such as tariffs, food safety standards have become a major tool in regulating trade in agricultural and food products. Despite an increased interest in food policy regulations globally (Disdier et al., 2008;Murina and Nicita, 2015;Crivelli and Groeschl., 2016;Kareem et al., 2017;Kareem, 2016;Wilson and Otsuki, 2004;Henson and Loader, 2001;Otsuki et al., 2001a,b;Henson and Jaffee., 2008;Henson and Loader, 1999;Henson et al., 2000a,b), to the best of our knowledge, there is a paucity of empirical research on the impact of food policy regulations on Cameroon's agricultural trade. To our knowledge, no study has investigated the impact of Sanitary and phytosanitary measures on Cameroon's cocoa exports at the 6-digit HS level. ...
... Several studies (Otsuki et al., 2001a;Henson et al., 2000a,b;Henson and Loader, 2001;Henson and Loader 1999;World Bank, 2005) have pointed to the fact that non-tariff measures such as SPS requirements can act as a disguised restriction to trade especially for developing countries. This is due to the inadequate technical and financial resources to comply with new laws, different methods of ensuring the protection of food, animals, compliance requirements on exporters which imposes costs such as the cost of modernizing the production system, processing, storage, and quality control equipment (Otsuki et al., 2001b;Henson et al., 2000a,b;Neeliah et al., 2012;Neeliah et al., 2013). ...
... This research borrows and adopts the methodological approach from Neeliah et al. (2012Neeliah et al. ( , 2013, Henson and Loader (1999), Henson et al. (2000a,b), and Nguyen and Jolly (2020). Face-to-face interviews using open-ended questionnaire were conducted with key informants in the cocoa sub-sector through in-depth structured and non-structured interviews with representatives from institutional stakeholders in the cocoa sub-sector namely: the Deputy Director of Internal Commercialisation at the National Cocoa and Coffee Board (NCCB); the Head of Service, Chemical and Organoleptic Analysis of the Central Laboratory for Analysis, Department of Quality and Sustainability of the NCCB; the Head, Development Department of the Cocoa and Coffee Inter-professional Council (CCIC); and the Head, Regional Delegation of the Ministry of Commerce (MINCOMMERCE) for the South West Region. ...
... With the formation of the World Trade Organization and subsequent dismantling of traditional trade barriers such as tariffs, food safety standards have become a major tool in regulating trade in agricultural and food products. Despite an increased interest in food policy regulations globally (Disdier et al., (2008); Murina and Nicita, (2015); Crivelli and Groeschl, (2016); Kareem et al., (2017) ;Kareem, (2016); Wilson and Otsuki, (2004); ; Otsuki et al., (2001a,b); Henson and Jaffee, (2008); Henson and Loader, (1999); Henson et al., (2000a,b), to the best of our knowledge, there is a paucity of empirical research on the impact of food policy regulations on Cameroon's agricultural trade. To our knowledge, no study has investigated the impact of Sanitary and phytosanitary measures on Cameroon's cocoa exports at the 6-digit HS level. ...
... Several studies (Otsuki et al., 2001a;Henson et al., 2000;Henson and Loader 1999;World Bank, 2005) have pointed to the fact that non-tariff measures such as SPS requirements can act as a disguised restriction to trade especially for developing countries. This is due to the inadequate technical and financial resources to comply with new laws, different methods of ensuring the protection of food, animals, compliance requirements on exporters which imposes costs such as the cost of modernizing the production system, processing, storage, and quality control equipment (Otsuki et al., 2001b;Henson et al., 2000;Neeliah et al., 2012;Neeliah et al., 2013). ...
... This research borrows and adopts the methodological approach from Neeliah et al., (2012Neeliah et al., ( , 2013, Henson and Loader (1999), Henson et al., (2000), and Nguyen and Jolly (2020). Face-to-face interviews using open-ended questionnaire were conducted with key informants in the cocoa sub-sector through in-depth structured and non-structured interviews with representatives from institutional stakeholders in the cocoa sub-sector namely: the Deputy Director of Internal Commercialisation at the National Cocoa and Coffee Board (NCCB); the Head of Service, Chemical and Organoleptic Analysis of the Central Laboratory for Analysis, Department of Quality and Sustainability of the NCCB; the Head, Development Department of the Cocoa and Coffee Inter-professional Council (CCIC); and the Head, Regional Delegation of the Ministry of Commerce (MINCOMMERCE) for the South West Region. ...
Article
Full-text available
There is growing concerns about food quality and food safety standards along the agricultural value chain in recent years. This study seeks to analyse the effect of changes in food policy regulations, particularly sanitary and phytosanitary measures on Cameroon’s cocoa exports and to explore the compliance strategy to sanitary and phytosanitary measures adopted by institutional actors in the cocoa sub-sector. To achieve this, the study used a mixed methodological approach, consisting of both qualitative and quantitative approaches using business surveys and gravity-based models respectively. Key informant interviews were conducted with major institutional actors in the cocoa sub-sector and the data were analysed using the thematic content analysis. The study used panel data on Cameroon’s cocoa trade with 10 major importing countries between 2001 and 2017 using the gravity model. The results indicate that institutional actors had adopted both reactive and proactive compliance strategies to sanitary and phytosanitary measures in importing markets. Also, the result suggests that cocoa export from Cameroon is not significantly influenced by sanitary and phytosanitary measures in major importing markets. Other factors such as gross domestic product, common language, and population were significant in influencing trade flows. The results also point to the limited supply-side capacity of the export commodity. These findings necessitate the need to strengthen Cameroon’s standards-setting institutions and the regulatory framework to improve Cameroon’s capacity to comply with sanitary and phytosanitary measures and to improve the export quality. Also, it is important to implement policies to address supply-side constraints and low productive capacity in the cocoa sub-sector.
... The survey sought opinions about four groups of standards and legislation: (i) global standards that are defined by the Codex Alimentarius, such as the Code of hygienic practices for fresh fruits and vegetables (5) or the Codex pesticide residue database (6); (ii) legislation on fresh produce defined by the European Union (e.g., the General Food Law Regulation (EC) 178/2002 containing requirements on traceability, Regulation (EC) 852/2004 on the hygiene of foodstuffs, Regulation (EC) 2073/2005 on microbiological criteria, Regulation (EC) 1881/2006 on food contaminants, etc.); (iii) national legislation in the country of origin of the producers with whom the respondents worked; and (iv) private standards (both private collective standards [e.g., GlobalGAP] and private standards issued by individual companies [e.g., Tesco's Nature's Choice]). The questions were developed based on a review of the literature (e.g., (17,18,39)) and on discussions between fresh produce experts of a research consortium of EU and non-EU countries involved in the Veg-i-Trade project (www.veg-itrade.org) research on the topic of microbiological and chemical safety of fresh produce in a global context financed by the European 7th Framework Research Program (2010 to 1015). ...
... If the level of the farmer's system is sophisticated and well developed, the required effort will be small, whereas if the producer's system for ensuring food safety in fresh produce production or trade is not systematic or is nonexistent, or doesn't exist as a formal written system, the required efforts will be much higher (23). Thus, suppliers in developed countries will tend to have lower costs of compliance than suppliers in developing countries (15,17,29), which may explain why the Global South group of experts perceived EU legislation to require a high implementation effort, whereas the Global North group perceived the implementation effort as moderate. Moreover, producers and companies within the EU are deemed to already comply with the EU legislation. ...
... Considerable progress has been made since the 1950s in lowering explicit barriers to trade, such as tariffs. As tariff barriers have declined, the emphasis that was put on nontariff barriers has increased (17). In the literature, some authors refer to standards as barriers to trade, whereas others see them as catalysts for upgrading the food safety system (16). ...
Article
Full-text available
This study describes the results of an on-line survey of fresh produce supply chain experts who work with producers from the Global North (n=41, 20 countries) and the Global South (n=63, 29 countries). They expressed their opinion using 1 to 5 Likert scales on several items related to four types of food safety and quality standards and legislation: Codex Alimentarius standards, European Union legislation, national legislation, and private standards. The results reflect the different circumstances under which the Southern and Northern producers operate in relation to the local organization, regulation, and support of the sector; but they also indicate similar challenges, in particular, the challenge of private standards, which were perceived to demand a higher implementation effort than the other three types of standards. Private standards were also strongly perceived to exclude Southern and Northern small- and medium-scale producers from high-value markets, whereas European Union legislation was perceived to strongly exclude, in particular, small- and medium-scale Southern producers. The results further highlight concerns about costly control measures and third-party certification that are required by downstream buyers but that are mostly paid for by upstream suppliers. Food standards are seen in their dual role as a catalyst for implementation of structured food safety management systems on the one hand and as a nontariff barrier to trade on the other hand. The results of the survey also pointed up the advantages of enforcing food safety and food quality standards in terms of knowledge spillover to noncertified activities, increased revenues, and improved food safety of delivered produce. Survey results highlight the importance of technical assistance and support of producers by governments and producer cooperatives or trade associations in the implementation and certification of food standards, along with increased awareness of and training of individuals in food protection practices to ensure food safety.
... The imposition of new, higher standards can lead to trade disputes, as well as remaining differences among countries in how standards are developed and applied. In particular, rising standards and the rapid change in food safety regulation in the industrialized countries creates challenges for developing countries, many of which have seen rapid growth in food exports during the 1990s (Unnevehr 2000, Henson and Loader 1999), particularly for fish, seafood, fruits and vegetables. U.S. FDA detention data for imports provides one indicator of where difficulties may arise in meeting food safety standards. ...
... The establishment of international standards has also not facilitated trade as discussed above except in terms of establishing broader frameworks for regulation. The transactions cost of participation in the international agencies is very high for less developed countries (Henson and Loader 1999 ...
... The establishment of international standards has also not facilitated trade as discussed above except in terms of establishing broader frameworks for regulation. The transactions cost of participation in the international agencies is very high for less developed countries (Henson and Loader 1999), and the returns have yet to be demonstrated. One potential meta-standard that may aid less developed countries is the Codex effort to set out guidelines for HACCP that can be adapted to developing food systems (Jansen 2001). ...
... However, there is substantial evidence that disagreements over SPS measures are becoming more important over time due to several trends. Reduction in traditional trade barriers, growth in trade of fresh and minimally processed foods, growth in trade of livestock products, and increased consumer awareness and demand for safety have all contributed to increased disputes over SPS measures and allegations that they pose barriers to trade (Unnevehr 2000;Henson and Loader 1999;Dyck and Nelson 2000;Buzby and Roberts, 1997). ...
... These countries may not have adequate infrastructure to ensure basic sanitation in processing and transport and may lack public oversight to certify certain kinds of safety. Often private market coordination replaces public oversight to ensure that food safety standards in high income markets are met, but the public sector in many developing countries is playing a growing role in food safety regulation (Henson and Loader, 1999). As we discuss below, the issue of equivalence in safety outcomes has been identified by developing countries as important in implementation of the SPS agreement. ...
... Tariffs, trade agreements and non-tariff regulations are barriers for exporters to overcome, and the WTO's role is to ensure that these measures are not discriminatory or protectionist; they must be based on current science and internationally agreed upon (World Trade Organisation, 2015). Heavily regulated non-tariff barriers (NTBs) such as those related to the Agreement on the Application of Sanitary and Phytosanitary Measures (the SPS Agreement) can be technically challenging to adhere to for some countries (Bourke, 1988;Henson & Loader, 1999). The SPS Agreement was implemented to protect countries against potential threats to human, animal, and plant health from the importation of diseases, pests or chemical residues associated with animals, plants, and their products (World Health Organisation, 1995). ...
Thesis
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The effective disinfestation of wood products for trade is critical to halting the spread of global invasive insect species. Invasive insects are being transported inadvertently with wood products, despite increasing awareness of this issue. With the arguably most useful and effective disinfestation tool for wood products, methyl bromide (MB), due to be phased out globally, the issue of finding equally effective replacements is pressing. Phosphine (PH3) has been in use for several decades to disinfest unprocessed radiata pine (Pinus radiata D.Don) logs during shipment as an alternative to MB in New Zealand. The PH3 treatment used for pine logs is based on a fumigation schedule for grains. However, little is known about the physiology of the target pests, bark beetles, and how their physiology may affect disinfestation in an enclosed space during log transit. Further, the unique abiotic and biotic variables associated with the fumigation of whole pine logs within relatively airtight ship holds is largely unknown. In this thesis I focus on three fundamental knowledge gaps related to the use of PH3 for the disinfestation of pine logs in transit. Firstly, I quantified the respiration of recently harvested radiata pine logs during storage in an enclosed space. I showed how respiring pine logs dramatically changed the surrounding atmosphere to severely hypoxic (low O2) and hypercapnic (high CO2) within days of containment. I also demonstrated that there were strong seasonal differences in the amount and rate of CO2/O2 from the log sections. Secondly, I determined the respiratory tolerances and gas exchange patterns of the bark beetle Hylurgus ligniperda (F.), a target pest species in radiata pine disinfestation. Building on the atmospheric data I obtained from the respiration of radiata pine logs, I tested the respiratory response of H. ligniperda to varying levels of O2. H. ligniperda exhibited a continuous ventilatory pattern and was highly tolerant of hypoxic atmospheres across all three life stages tested: larvae, pupae, and adults. Pupae were the most tolerant to hypoxic atmospheres. Thirdly, I analysed the efficacy of PH3 against all life stages of H. ligniperda. Overall, 100% efficacy was not achieved for all life stages; pupae were the most tolerant of exposure to PH3. Contrary to other studies, I found the egg life stage was the most sensitive to PH3. PH3 efficacy was most improved by a longer exposure, rather than an increase dose. Measuring the respiration of both pine logs and bark beetles has highlighted the challenge of controlling endophagous insect pests in an enclosed space. Overall, my research suggests that control treatments could be less effective against bark beetle pests due to their ability to regulate their respiration under the severely hypoxic atmospheres that develop during the transportation of whole pine logs. This adaptation may reduce the insect’s uptake of PH3 through the respiratory system and, hence, may explain why there has been varied operational success with the current treatment schedule.
... az ellátási lánc széttöre dezettsége, a technikai feltételek színvonala, a gyen ge kommunikációs és egyéb infrastruktúra. Azokat a termelőket negatív kereskedelmi hatások érik, akik nem tudják biztosítani a legjobb termelői gyakorlatot és a nyomon követhetőségi rendszer működtetését (Henson-Loader 1998). A fejlődő országok segítése érdekében a FAO 1999-ben a nemzeti élelmiszerel lenőrzési rendszer fejlesztési, élelmiszerbiztonsági és minőségi programot indított el. ...
Article
Full-text available
Az élelmiszerbiztonsági és minőségi követelmények szerepe és megítélése a nemzetközi kereskedelemben egyre inkább felértékelődik. A gazdasági növekedéssel párhuzamosan az élelmiszerpiacok - döntően a fejlett országokban - telítetté váltak. Az élelmiszerfogyasztói magatartás összetevőin belül a biztonsági motivációk erősödnek, így nagyobb figyelem mutatkozik meg az élelmiszerbiztonsági, a minőségi és etikai összefüggések iránt.
... Countries apply higher food safety standards on imports than domestic supplies. SPS measures distort trade by laying down import bans, prohibitive compliance costs, reducing trade flows and diverting trade from one trading partner to another trading partner through standards that discriminate between individual suppliers [18]. ...
... Countries apply higher food safety standards on imports than domestic supplies. SPS measures distort trade by laying down import bans, prohibitive compliance costs, reducing trade flows and diverting trade from one trading partner to another trading partner through standards that discriminate between individual suppliers [18]. ...
Article
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Agricultural trade is becoming more important today due to its multi-dimensional importance. Technical standards such as sanitary and phyto-sanitary (SPS) measures impose barriers to agricultural-trade. In some cases SPS measures are also advantageous for countries from the point of protection of plant, animal and human health. Against this backdrop, this paper attempts to examine issues and trends related to trade restrictions and SPS measures with special reference to Indo-European Union (EU) agricultural trade. Results from various indices such as Trade Intensity Index: Tij = (xij / Xit) / (xwj / Xwt), Revealed Comparative Advantage Index: RCAij = (xij / Xi) / (xwj / Xw) and Export Specialization Index: ES = (xij / Xit) / (mkj / Mkt) shows the growing trade potential between India and EU. India is in a more vulnerable position in agro-trade than EU due to the SPS measures adopted by the EU. Indian products such as rice, cotton, fruits and vegetables are mostly affected by the EU's SPS measures whereas from the EU side wines and spirits, raw hides and skins and other agro-products are more prone to SPS challenges. This paper also highlights the recent unilateral action of the EU Commission over ban on some agro-products of India which raised much apprehension and repercussions from both the trade partners. Results confirm that authorities from both the sides have adopted reciprocal and restrictive attitude towards trade through various non-tariff measures (NTMs). Proactive steps in trade may tap the Indo-EU agricultural-trade potential.
... az ellátási lánc széttöredezettsége, a technikai feltételek színvonala, a gyenge kommunikációs és egyéb infrastruktúra. Azokat a termelôket, amelyek nem tudják biztosítani a legjobb termelôi gyakorlatot, a nyomon követhetôségi rendszer mûködését negatív kereskedelmi hatások érik (Henson-Loader 1998). A fejlôdô országok segítése érdekében a FAO 1999-ben a nemzeti élelmiszerellenôrzési rendszer fejlesztési és élelmiszerbiztonsági és minôségi programot indított el. ...
Conference Paper
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A friss zöldség- és gyümölcs importban a hatósági minőségellenőrzési rendszer 2000-ben lépett életbe, párhuzamosan a belső piacra vonatkozó rendszerrel (exportellenőrzés 1993 óta működik). A hatósági minőségellenőrzés rendszerét kiegészíti az importőr, illetve a belső forgalmazó (kiskereskedelmi-lánc vagy beszerzési társaság) saját minőségellenőrzési rendszere. A magyar importőrök minőségellenőrzési folyamata átlagos, vagy átlagosnál gyengébb az Egyesült Királyságbeli importőrökhöz képest. Az import minőségellenőrzés általában az EU-val harmonizált Élelmiszer Könyv előírásaira támaszkodik, saját importőr vagy kiskereskedelmi szabványok és előírások nem léteznek, kivéve kiskereskedelmi-láncok speciális csomagolási követelményeit. A minőségtanúsítási rendszer elterjedése részleges, az importőrök egy része még nem ismerte föl jelentőségét. Az import minőségellenőrzése során a szisztematikus mintavétel nem teljes körű, a minőségellenőrzés döntően szemrevételezésre, ritkábban a minta kézi átválogatására épül. A minőségellenőrzés infrastruktúrája viszonylag gyenge. A nyomon követhetőség az exportőrök egy részéről adottnak tekinthető, a magyar importőrök nem építettek ki szisztematikus nyomon követési rendszert, amely kiterjed a termeléstől a tárolási, a feldolgozási, a csomagolási, a szállítási (importőr és belső) fázisokra, így az értékesítési-láncon belüli élelmiszerbiztonsági és minőségi követelmények koordinációja közepes. A követelmények elsősorban a szorosan vett minőségre, azon belül döntően a külső minőségi tulajdonságokra vonatkoznak. Az exportőr értékelésénél munkaegészségügyi, biztonsági és jóléti, valamint a természeti környezeti szempontokat egyáltalán nem veszik figyelembe.
... While fears of pest, virus, and disease consequences for plant, animal, and human health are undoubtedly genuine and call for effective safeguards, these regulations have become another contentious issue under the WTO. As with subsidies and environmental payments, many developing countries regard the sanitary and phytosanitary requirements and regulations imposed by richer countries as another mechanism for imposing indirect trade barriers (Henson and Loader 1999; Athukorala and Jayasuriya 2003). There are several market niches that link cultivated products with what are considered to be improved standards of cultivation with regard to ecosystem outcomes or ethical issues. ...
... This is especially true in relation to supplying the fresh and processed horticultural products to markets of developed countries. As consumer awareness and concern for food safety and the ethical and environmental conditions under which food is produced and distributed is growing, these measures can consequently be detrimental to exports from developing countries (Henson et al., 2000;World Bank, 2005). ...
Article
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The paper has looked into the composition and direction of India's horticultural trade and the comparative advantage that India enjoys in selected markets with respect to its competitors. The importance of SPS provisions stipulated by niche market importers as barrier to India's trade, and the SPS compliance strategies adopted by the exporters are also dealt. It has been observed that Asian countries are the favourite export destinations for most of the Indian horticultural commodities, even though the unit price realized is less compared to that realized in the European countries, USA and Japan. The study has found that India has comparative advantage over China in the Asia market in fresh grapes, guava, and mango. In cashew, Tanzania and Vietnam have consistently enjoyed comparative advantage over India in the EU market, but not in the Asia market. Food safety standards stipulated by the USA and EU have had considerable impact on Indian horticultural exports as the country faces the highest number of rejections of consignments and notifications issued. Exports of spices, fresh and processed fruits, and vegetables are the most affected commodities due to non-compliance. The non-tariff barriers established by the importing countries combined with other factors like zero tolerance to insects and pests, and issues in certification, cause difficulties to the exporters. Rejection or additional checks at the entry points create considerable financial loss, delay in delivery to the client, loss of quality and reputation of Indian exports.
... SPS measures are an important issue for developing countries. Henson and Loader (1999) recommend that it is beneficial for developing countries to join in the SPS Agreement and help define international standards. Developing countries are handicapped by the level of science required in the negotiations and so may not have much influence in determining international standards, as well as face problems in trying to achieve those standards. ...
... Developing countries will only actualise many of the potential benefits of the SPS Agreement if they are willing and able to fully participate in the institutions and practices that are established under the Agreement (Loader and Henson, 1999). This section aims to provide some objective measures of the degree to which developing countries actually participate in the SPS Agreement and the manner in which the Agreement itself has operated since its original inception. ...
... The current survey borrows, adapts and builds on Henson and Loader (1999) and Henson et al. (2000) to examine the factors and determinants that fish and horticultural products exporters face in exporting their products to the EU. The survey hinged on a structured questionnaire (Q1) which included both close-and open-ended questions. ...
Article
This study was undertaken to assess whether SPS measures prevailing in the European Union (EU) have had an effect on the export of fishery and horticultural products from Mauritius. Specific objectives were to assess and compare the importance of EU SPS measures as an export determinant for Mauritian fishery and horticultural products exports, to determine whether these measures have acted as a barrier to trade and lastly to describe the compliance strategy adopted by exporters using firm-level surveys and in-depth interviews with key informants. The results suggest that, most respondents considered that public and private SPS requirements were not an important export determinant in agro-food trade with the EU and were not acting as barriers to exports. The compliance strategy used by the majority of exporters was mainly reactive.
... Indeed, such regulations can become rather effective barriers to trade, and there has been concern that negotiated reductions in tariff protection might be replaced through stringent SPS requirements. In this context, agriculture and food exports from developing countries are seen to be particularly vulnerable Loader, 1999 &2001;OECD, 2001). For example, using a gravity model, Otsuki, Wilson and Sewadeh (2001a) estimated the impact of a new harmonized aflatoxin standard set by the European Union (EU) on food exports from Africa. ...
... These include: the use of food safety regulations as non-tariff barriers, especially to developing countries (e.g. Henson & Loader 1999); methods for the assessment of compliance costs of alternative food safety approaches such as HACCP (e.g. Boland, Hoffman, & Fox, 2007); alternative mechanisms for food safety control such as legal liability (e.g. ...
Article
This article provides an overview of economic methods to measure costs and benefits related to food safety issues. After an introduction on general economic principles, including the distinction between social and private costs and benefits, the article highlights the various methods for calculation of costs and benefits, including “willingness to pay”, amongst others. Particular attention is paid to the “quality-adjusted life years” (QALY) method for quantitatively expressing health impacts. The practice of Regulatory Impact Assessments as carried out by the UK authorities is explored in more detail as an example of cost–benefit analysis of regulatory measures. The applicability of the approaches to the various stages of the SAFE FOODS model is highlighted.
... Along with this, food regulations have become an issue in international trade (Jaffee and Henson, 2005). Henson and Loader (1999) argued that sanitary and phytosanitary measures required by developed countries would be increasingly challenged by developing country exporters due to their potential trade impeding effects. They mostly referred to public sector standards. ...
Article
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Purpose – The purpose of this paper is to seek to show how the implementation of different quality assurance programs (QAPs) affects international market access for horticultural processing firms in developing countries. Design/methodology/approach – A representative survey of 50 registered firms processing horticultural produce in Vietnam was conducted. Logistic regression models are used to analyze the effects of QAPs and other firm level factors on participation in different export supply chains. Findings – QAPs influence firms' participation in export supply chains significantly. While the implementation of internationally recognized QAPs improves access to OECD markets, national QAPs are more important for exports to non-OECD countries. Practical implications – Horticultural processing firms in developing countries can improve their access to export markets when they implement formal QAPs. There is segmentation between non-OECD supply chains, for which national QAPs suffice, and OECD supply chains with higher food safety and quality requirements, for which international QAPs are important. Depending on the intended target markets, firms can adjust their strategies accordingly. Originality/value – This study contributes empirically to the literature on private sector food regulations and developing country exports by using a unique set of firm level data from Vietnam. While analyzing the impact of QAPs on export market access, it is differentiated between national and international QAPs. Policy implications are discussed.
... With decreasing tariff trade barriers, it is suspected standards are also employed as a form of strategic trade policy (i.e., Dasgupta 2000, Mattoo, 2001. Most of the up to date literature on standards and trade has primarily dealt with process standards, i.e. environmental and labor standards (i.e., Lynch 2000, Griffin 2000; and standards in the context of development (Henson 1999, Donovan et al. 2001, Hufbauer et al. 2002. Not all papers are concerned with standards imposed as means of trade politics; rather, some investigate social dimensions of standards and their impacts on domestic markets. ...
... The imposition of new, higher standards, as well as remaining differences among countries in how sta ndards are developed and applied, can also lead to trade disputes. In particular, rising standards and the rapid change in food safety regulation in the industrialized countries creates challenges for developing countries, 15 many of which have seen rapid growth in food exports since the 1990s (Unnevehr, 2000;Henson and Loader, 1999). For example, the proposed new standards for aflatoxin in the EU had a disproportionate impact on exports from developing countries (Otsuki et al., 2001). ...
... There are limited studies that have looked at constraints and factors specifically influencing compliance of EurepGap standards. Most of the factors documented so far are related to studies on other food safety standards such as Hazard Analysis and Critical Control Points (HACCP) and Sanitary and Phytosanitary Standards (SPS; e.g., Antle, 1995; Charlotte & Fairman 2003; Henson & Loader, 1999). Further, these few studies, with the exception of that of Okello (2005) and Graffham et al. (2007), have mainly focused on determinants of compliance of standards among farmers in developed countries and in the Middle East (see, e.g., Charlotte & Fairman, 2006; Muaz et al., 2005). ...
Article
The authors identify constraints and critical factors that influence compliance with EurepGap standards among French bean smallholder exporters in Kirinyaga District, Kenya. A probit model was used to determine the factors influencing the EurepGap compliance decision while descriptive statistics were used to identify the major constraints to compliance. Results indicate that the high initial cost of compliance is a major constraint on compliance. This arises from the need to purchase recommended agro-chemicals and fertilizers, and the hiring of additional labor. The key factors that are likely to enhance compliance with the standards include socioeconomic and farm characteristics such as area under French beans, household size, total number of farm enterprises and access to extension services. However, compliance is also negatively influenced by access to off‐farm income. The authors make several policy recommendations that could be implemented to enhance and upscale compliance with EurepGap standards in the study area. [EconLit citations: D230; Q130; Q180]. (C) 2010 Wiley Periodicals, Inc.
... The effects of the WTO SPS Agreement can be gauged partly by studying the institutional capacity, the participation in the institutions and the practices established under the Agreement ( Loader & Henson, 1999). Objective measures include: membership in international standards organisations-the World Animal Health Organisation (OIE), the International Plant Protection Convention (IPPC), CAC, implementation of transparency obligations, attendance at meeting of SPS Committee. ...
Article
This paper aims at assessing the implementation of the clauses of the World Trade Organisation (WTO) Sanitary and Phytosanitary (SPS) Agreement in a developing country context, namely Mauritius. It describes the regulatory and institutional infrastructure developed to meet new obligations under the SPS Agreement using an inventory approach and in-depth interviews at stakeholder level. The findings indicate that, as a developing country, Mauritius has achieved a reasonable degree of compliance with its commitments towards the WTO. A national accreditation body has been set up. A number of transparency mechanisms have been put in place such as a National Notification Authority, a Sanitary and Phytosanitary Enquiry Point and a national SPS committee involving the public and private sectors for communicating and discussing about SPS measures of trade relevance. Mauritius participated, to different extents, in the WTO SPS committee and in the activities of international standard-setting organisations. It has also updated some SPS-related laws. There have been operational changes in local organisations dealing with SPS issues. However, constraints such as the insufficient capacity to do risk assessment and to carry out equivalence might prevent Mauritius from meeting all its obligations towards the WTO.
... In today's global economy, agribusinesses compete not only in their capacity to lower production costs but also in their ability to offer safer and higher-quality products. Regulations aimed at increasing food safety standards, which were first established in developed countries, have rapidly spread into developing countries (12,15,32). Poultry meat is one of the main products involved in foodborne infections because of its susceptibility to infection by pathogens as well as physical and chemical contamination (6,19). ...
Article
Full-text available
The objectives of this study were to determine the extent of food safety management systems (ISO 22000/HACCP) implementation in the Turkish poultry industry. A survey was conducted with 25 major poultry meat producers, which account for close to 90% of national production, and a comparison was made between the procedures of small-to-medium enterprises (SMEs) and large firms (LFs). The survey revealed that there is a high level of application of ISO 22000 (72%), which is seen to aid the export market. LFs were shown to adopt more stringent schemes and make better use of governmental support services than SMEs. LFs were also more aware of, and able to deal with, risks from a greater range of contaminants.
... or food processing firms in national markets, as for example shown by Muth et al. (2003). Given the increasing amounts of traded high-value agricultural products, and the growing number of supply chains that surpass national and regional boundaries, food regulations have recently become also an issue in international trade (Jaffee and Henson 2005). Henson and Loader (1999) argued that sanitary and phytosanitary measures required by developed countries would be increasingly challenged by developing country exporters due to their potential trade impeding effects. They mostly referred to public sector standards. In addition, however, there is a growing number of regulations emerging from the private sector. ...
Thesis
On the background of the food system transformation in developing countries, this cumulative dissertation answers the following research question in three articles: What are the determinants and implications of the food system transformation in the horticultural sector in Vietnam? The first article is entitled “Quality Assurance Programs and International Market Access: Empirical Evidence from the Vietnamese Horticultural Industry”. It is based on a sample of 50 registered fruit and vegetable processing firms from allover Vietnam. With these firm survey data it is analyzed how private quality assurance programs (QAPs) in Vietnam’s horticultural sector influence the access to international markets. Results of different logistic regression models show that QAPs are critical determinants of international market access. However, the effect is market specific and depends on the type of program implemented. While international QAPs – like HACCP, GLOBALGAP, or ISO 9000 – notably improve access to countries of the Organization for Economic Co-operation and Development (OECD), national QAPs seem to be sufficient for exports to non-OECD countries. Domestic market sales decrease the probability of being an OECD exporter and increase the probability of being a non-OECD exporter, suggesting a certain market segmentation between high-value exports on the one hand, and domestic sales and lower-value exports on the other. Although it is argued that the food system transformation is to a large extent demand driven, most of the studies available concentrate primarily on supply side aspects. For this reason, the second article entitled “Changing Consumer Buying Habits in Developing Countries: A Disaggregate Demand Analysis for Fruits and Vegetables in Vietnam” analyzes changing purchasing and consumption habits for fresh fruits and vegetables. The analysis is based on data from a comprehensive survey of almost 500 households in Vietnam’s two major cities, Hanoi and Ho Chi Minh City. Demand parameters are estimated with an almost ideal demand system (AIDS), disaggregating by product and process attributes that characterize modern, high-value supply chains, i.e. (i) place of purchase, particularly considering modern retailers, (ii) food safety indications, with an emphasis on formal labels, and (iii) region of production, with a focus on imports. Estimation results demonstrate that consumers’ purchase decisions to buy fresh fruits and vegetables from emerging modern supply chains are heavily driven by household income (expenditures). Income elasticities range between 1.2 and 2.6. Own-price elasticities were found to be between -1.5 and -1.1 and the elasticities regarding distance to the nearest supermarket are between -0.6 and -0.3. Against the background of Vietnam’s current rapid economic development – with incomes growing fast and supermarkets reaching higher penetration rates – high-value agricultural products from modern supply chains will rapidly gain market shares at the expense of products from more traditional sub-sectors. In order to adapt to the new requirements in the horticultural sector, appropriate responses in supply chains are required. Such responses presuppose a good understanding of consumer preferences and valuation of new product attributes. Therefore the third article entitled “Consumer Valuation of Food Safety and Quality Attributes in Vietnam” analyzes consumers’ willingness to pay for different vegetable attributes, using contingent valuation techniques. In a mediation framework, special consideration is given to consumer perceptions. Comprehensive data from the above mentioned household survey in Hanoi and Ho Chi Minh City serve as the basis. Consumers are willing to pay an average price premium of 60% for vegetables that are free of agrochemical residues, and of 20% for a set of convenience attributes, like peeled and pre-cut vegetables. Rising income levels and media use have positive impacts on the willingness to pay. These impacts are partly mediated through different consumer perceptions. From a policy perspective, public media can and should be used to promote the spread of objective information, especially with respect to health issues. The results of the three articles have important implications for rural development strategies in poor countries, which are discussed in a concluding chapter. Auf dem Hintergrund der sich verändernden Lebensmittelmärkte in Entwicklungsländern, beantwortet diese kumulative Dissertation folgende Forschungsfrage in drei Artikeln: Was sind die Bestimmungsgrößen und Auswirkungen der Veränderungen im Obst- und Gemüsesektor in Vietnam. Der erste Artikel trägt den Titel “Quality Assurance Programs and International Market Access: Empirical Evidence from the Vietnamese Horticultural Industry” und basiert auf einer Stichprobe von 50 registrierten obst- und gemüseverarbeitenden Unternehmen aus ganz Vietnam. Mit den Unternehmensdaten aus der Erhebung wird analysiert, wie sich private Qualitäts¬sicherungs¬programme (QSP) im vietnamesischen Obst- und Gemüsesektor auf den internationalen Marktzugang der Unternehmen auswirken. Die Ergebnisse aus verschiedenen logistischen Regressionsmodellen zeigen, dass QSPs entscheidende Bestimmungsgrößen für den internationalen Marktzugang sind. Der Einfluss ist jedoch marktspezifisch und hängt von der Art des Programms ab. Während international anerkannte Programme wie HACCP, GLOBALGAP oder ISO 9000 Zugang zu Ländern der Organisation für wirtschaftliche Zusammenarbeit und Entwicklung (OECD, Organisation for Economic Co-operation and Development) namentlich verbessern, scheinen nationale Programme für Exporte in nicht-OECD Länder auszureichen. Die Höhe der Umsätze auf dem einheimischen Markt verringert die Wahrscheinlichkeit für OECD Exporte and erhöht die Wahrscheinlichkeit für nicht-OECD Exporte. Dies legt eine gewisse Segmentierung zwischen hochwertigen Exporten auf der einen Seite und inländischen Verkäufen mit eher niederwertigen Exporten auf der anderen Seite nahe. Obwohl argumentiert wird, dass die Veränderungen im Nahrungsmittelsektor zu einem großen Teil vom Nachfrageverhalten bestimmt wird, konzentrieren sich die meisten bisherigen Untersuchungen auf die Angebotsseite. Aus diesem Grund analysiert der zweite Artikel mit dem Titel „Changing Consumer Buying Habits in Developing Countries: A Disaggregate Demand Analysis for Fruits and Vegetables in Vietnam“ die sich verändernden Einkaufs- und Konsum¬gewohnheiten für frisches Obst und Gemüse. Die Untersuchung basiert auf Daten aus einer umfassenden Befragung von fast 500 Haushalten in den beiden größten Städten Vietnams, Hanoi und Ho Chi Minh Stadt. Parameter der Konsumentennachfrage werden mit einem AIDS-Modell (Almost Ideal Demand System) geschätzt, wobei nach Produkt- und Prozesseigenschaften disaggregiert wird, die moderne Wertschöpfungsketten von hochwertigen Agrarprodukten kennzeichnen. Ein besonderes Augenmerk gilt (i) dem Einkaufsort, wobei besonders moderne Einzelhandelskonzepte berücksichtigt werden, (ii) der Kenntlichmachung von Nahrungs¬mittel¬sicherheit, mit Heraushebung von formalen Kennzeichnungen, und (iii) dem Ursprungsort, mit besonderem Schwerpunkt auf Importen. Die Schätzergebnisse veranschaulichen, dass die Kaufentscheidungen für frisches Obst und Gemüse von den aufkommenden modernen Wertschöpfungsketten stark von der Einkommenselastizität (Ausgabenelastizität) abhängen. Die Einkommenselastizitäten reichen von 1.2 bis 2.6. Die Eigenpreiselastizitäten befinden sich im Bereich von -1.5 und -1.1, während die Elastizitäten bezüglich des Abstands zum nächsten Supermarkt zwischen -0.6 und -0.3 liegen. Vor dem Hintergrund Vietnams derzeit rasanter wirtschaftlicher Entwicklung – bei der die Einkommen schnell wachsen und Supermärkte eine immer höhere Verbreitungdichte erreichen – werden modernen Wertschöpfungsketten für hochwertige Agrarprodukte sehr schnell weitere Marktanteile auf Kosten von Produkten der traditionellen Sektoren gewinnen. Um sich den neuen Anforderungen im Obst- und Gemüsesektor anpassen zu können, sind geeignete Reaktionsstrategien in den Wertschöpfungsketten notwendig. Dies setzt ein gutes Verständnis von Verbraucher¬präferenzen und von der Bewertung von neuen Produkteigenschaften voraus. Der dritte Artikel mit dem Titel „Consumer Valuation of Food Safety and Quality Attributes in Vietnam“ analysiert deshalb die Zahlungsbereitschaft von Verbrauchern für verschiedene Qualitätsmerkmale von Gemüse mit kontingenten Bewertungsmethoden. Im Rahmen eines Ansatzes, der vermittelnde und indirekte Einflüsse identifizieren kann, wird besonderes Augenmerk auf die Sichtweisen der Verbraucher gelegt. Umfassende Daten der oben erwähnten Haushaltsbefragung in Hanoi und Ho Chi Minh Stadt dienen hierfür als Grundlage. Verbraucher sind dazu bereit, einen Preisaufschlag von durchschnittlich 60% für Gemüse zu bezahlen, das keine agrarchemischen Rückstände enthält und von 20% für eine Reihe von Convenience-Eigenschaften, wie geschältes und bereits zugeschnittenes Gemüse. Das steigende Einkommensniveau sowie die Mediennutzung tragen alle positiv zu einer höheren Zahlungsbereitschaft bei. Teilweise werden diese Einflüsse durch die Sichtweisen der Verbraucher vermittelt. Aus politischer Perspektive können und sollten die öffentlichen Medien genutzt werden, um objektive Informationen zu verbreiten, besonders mit Bezug auf Gesundheitsangelegenheiten. Die Ergebnisse der drei Artikel haben für ländliche Entwicklungsstrategien in armen Ländern wichtige Implikationen, die in einem abschließenden Kapitel diskutiert werden.
Article
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Most work done to advance sustainable production and marketing of woodcarvings in Kenya is unsystematic and scattered. therefore, the review was aimed at synthesizing information on production and marketing of the woodcarvings. The woodcarvings industry has a rich history in the country. However, the production and processing of woodcarvings has not fully embraced newer technologies and innovations. The production technologies applied are ineffective and inefficient. This state has often compromised levels of precision and artistic making the industry unable to handle the threat from machine-made products. The market access strategies applied include cooperatives, direct marketing, collective action, contractual arrangements and e-commerce. Collective action including cooperatives and self-help groups is highly applied to market products. Cooperatives are preferred due to their associated benefits in terms of higher site prices hence more profits as a result of bulk marketing. Self-help groups are small associations and are increasingly being preferred as an alternative to cooperatives. Contractual arrangements and e-commerce are least applied strategies. Contractual arrangements often result into income stability and improved efficiency. E-commerce is the least applied although it leads to reduced transaction costs and improved information flow. This, therefore, calls for concerted efforts in terms of technical capacity building for actors in the woodcarvings value chain to apply effective and efficient production and marketing technologies and innovations. Key words: cooperatives, e-commerce, market, production, woodcarvings
Chapter
The perception of the consumer is changing significantly nowadays and has become more oriented toward food safety and quality. The customers demand products that are nutritious, healthy and cost effective, and processed under hygienic conditions. The concept of food safety is now gaining importance and the demand of food safety and quality assurance is increasing now. Trading of the dairy products in the domestic market and across international borders requires food safety and quality. Several government organizations/agencies work in ensuring the food quality assurance and safety. Some of these organizations are World Health Organization, World Trade Organization, Codex Alimentarius Commission, USFDA, FSSAI, and so on, engaged in safeguarding the consumer’s interest and play an important role in defining the standards for different food commodities. In this chapter, we will discuss such regulatory bodies in detail.
Preprint
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The globalization of COVID-19 pandemic is en route to produce severe economic impacts worldwide through distortions in global trade and supply chain. The globalized production and supply chain shocks originating from China generate substantial threat to world trade. The aim of this paper is to provide an early broad-based understanding of the likely trade implications of the pandemic. The paper begins with a standard trade analysis framework to explain the implications for world trade. The paper then presents a theoretical mapping showing the likely progression and span of world trade implications and reviews evidence available so far in the context of the mapping. The paper also presents a separate assessment on the likely implications particularly for trade between China and the rest of the world; followed by some key policy considerations. The paper concludes that the pandemic is likely to not only introduce new patterns of world trade but also affect trade relations, competition, and globalization. Given the scarcity of scholarly work on COVID-19's trade implications, the paper contributes by offering a novel broad-based understanding, which could serve as a basis for advanced analysis. Assessments presented could help stakeholders in preparing for a new world order of international trade.
Article
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The total export of agricultural products from India has touched US $ 17 billion with a share of 1.4 per cent of world trade in agriculture in 2009. During the period 1990-91 to 2003-04, the highest growth in real terms were recorded by fruits and vegetable exports. It is the second largest producer of vegetable after china having a share of 14 per cent in world vegetable production. This vast production base offers India tremendous opportunities for export in global market but the concentration of Indian horticulture exports is mainly in neighbouring countries. Horticulture exports from India are not able to find place in the developed country markets which are the global importers. This study was attempted to analyze the growth in export of potato, changes in its trade destinations using markov chain approach and SPS issues related to export. The study found that the export of potato has been growing significantly at a rate of 16.49 per cent per annum in terms of volume of trade. Sri Lanka was found the most stable and loyal market for potatoes from India. Malaysia, Nepal, Mauritius and UAE were other major importer of Indian potato. Therefore it was suggested that the attention should be focused on the market requirement and specifications of stable markets.
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The increasing policy interests and the vivid academic debate on non-tariff measures (NTMs) has stimulated a growing literature on how NTMs affect agrifood trade. The empirical literature provides contrasting and heterogeneous evidence, with some studies supporting the standards as catalysts view, and others favouring the standards as barriers explanation. To the extent that NTMs can influence trade, understanding the prevailing effect, and the motivations behind one effect or the other, is a pressing issue. We review a large body of empirical evidence on the effect of NTMs on agri-food trade and conduct a meta-analysis to disentangle potential determinants of heterogeneity in estimates. Our findings show the role played by the publication process and by study-specific assumptions. Some characteristics of the studies are correlated with positive significant estimates, others covary with negative significant estimates. Overall, we found that the effects of NTMs vary across types of NTMs, proxy for NTMs, and levels of details of studies. Not negligible is the influence of methodological issues and publication process.
Article
Full-text available
The increasing policy interest and academic debate on non-tariff measures (NTMs) has stimulated a growing literature on how NTMs affect agri-food trade. The empirical literature provides contrasting and heterogeneous evidence, with some studies supporting the ‘standards as catalysts’ view, and others favouring the ‘standards as barriers’ explanation. To the extent that NTMs can influence trade, understanding the prevailing effect, and the motivations behind one effect or the other, is a pressing issue. We review a large body of empirical evidence on the effect of NTMs on agri-food trade and conduct a meta-analysis to disentangle potential determinants of heterogeneity in estimates. Our findings show the role played by the publication process and by study-specific assumptions. Some characteristics of the studies are correlated with positive significant estimates, others covary with negative significant estimates. Overall, we found that the effects of NTMs vary across types of NTMs, proxies usedy for NTMs, and levels of details of studies. Not negligible is tThe estimated effects are also influenced by methodological issues and publication process.
Chapter
As the Uruguay Round has liberalized tariff and quantitative barriers to trade, concern has grown about the impact of other measures – many of which are not explicitly trade-related – on agricultural and food exports. In particular, analysts widely acknowledge that technical measures such as food quality and sanitary and phytosanitary (SPS) requirements can impede trade, particularly for developing countries. The Uruguay Round addressed the impact of these requirements through the SPS and Technical Barriers to Trade (TBT) Agreements. This chapter identifies the specific problems of developing countries in meeting SPS requirements in developed country markets, especially the European Union (EU). We base our findings on the results of case studies and an in-depth survey of developing country officials. SPS measures as barriers to trade Concerns over food safety regulations, labeling requirements, and standards for food quality and composition reflect the global proliferation of such measures, particularly in developed countries (figure 16.1). These measures can damage trade by imposing an import ban or by prohibitively raising production and marketing costs. They can also divert trade from one trading partner to another by discriminating among suppliers. Finally, they can reduce overall trade flows by increasing the costs and barriers for all suppliers. Attention to the trade impacts of SPS measures has focused largely on developed countries – through, for example, the high-profile dispute between the EU and the United States over the use of hormones to produce beef (Hormones case, see also chapter 15 in this volume).
Article
'Interspersing law with societal context, this volume by Dr Epps stands out among WTO analysis. The author offers a delightfully balanced view on the nature and origin of SPS measures (including references to history) whilst at the same time mastering the hard law of the SPS Agreement in detail. Practitioners will enjoy the detailed analysis of WTO dispute settlement. A reference book for practice and academia, and also a very, very good read.'
Article
This paper provides a comprehensive overview of the participation of different country groups in the implementation of the WTO's Sanitary and Phytosanitary (SPS) Agreement, with particular emphasis on developing countries. Six indicators of participation in SPS implementation activities are considered and compared to alternative benchmarks. The results reveal that although even low-income and least developed countries have participated in all the different SPS implementation activities, the overall participation rate of developing countries is low. However, there are considerable regional differences with Latin American countries being very active, while African countries play only a marginal role. Moreover, the evaluation of the involvement of developing country in the WTO process depends on the choice of the benchmark. Developing country participation rates in SPS implementation activities fall in many cases short of their WTO membership shares, but often correspond well with their shares in agricultural trade and value-added.
Article
The objective of this study was to determine by interviews the level of adoption of Hazard Analysis and Critical Control Point (HACCP) and ISO 9000 among Mexican Federal Inspection Type slaughterhouses. Among 39 slaughterhouses interviewed in 1999, only 18% had implemented HACCP, 57% were implementing or planning to adopt it, while remaining 25% showed no interest in implementation. Exporting slaughterhouses which supply to specific domestic niche markets first implemented HACCP. The major costs reported to HACCP adoption were staff time required to document the system and laboratory microbiology product testing, whilst reduced microbial counts in products was the most important benefit. Adoption of ISO 9000 in some of these Mexican slaughterhouses was a preliminary step and registered even lower rate of adoption than HACCP. Slaughterhouses with HACCP and ISO 9000 were located at the North border, where higher exporting trade activities take place. It may be concluded that the majority of the Mexican Federal Inspection Type slaughterhouses could not access to foreign trade nor to niches of domestic markets with high quality demands, because in the near future they will not have quality and safety systems operating.
Article
Food safety is receiving increasing attention in international agricultural trade. In this context, sanitary and phytosanitary (SPS) measures have been used by importing countries to protect consumers and the environment. However, SPS measures can function as disguised market protection. Trade distortions between countries that have a similar level of protection through SPS measures are less significant as compared to countries that have highly divergent SPS measures in place. The level of protection through SPS measures is significantly different in developing and developed countries. Due to ineffective and inefficient public regulations in developing countries to meet SPS requirements in developed countries, organizational and technological innovations are required in developing countries' food supply chains. To facilitate the implementation of these innovations, food safety assurance systems (FAS) can constitute an appropriate organizational innovation in exporting countries' supply chains. In this chapter, I analyze FAS in the horticultural sector in Vietnam and their effect on international market access. A representative sample of registered fruit and vegetable processing firms provide the basis for the analyses. Processing companies have considerable difficulties to access and to operationalize SPS requirements of importing countries. FAS are an effective tool to structure the process of implementing required measures in order to have the capacity to meet SPS requirements of importing countries. There are different FAS, which might serve different purposes. Results of logistic regression models show that FAS are market specific. Processors with already implemented international FAS have a higher probability of accessing OECD markets. For exports to non-OECD countries, national FAS facilitate international market participation. Small firms particularly profit from the adoption of international FAS. For this reason, firms have to be encouraged to implement such systems if they want to become internationally competitive and meet the increasing number of SPS requirements of importing countries. As substantial numbers of laborers in the processing enterprises and the primary producers are closely linked to the success of processors in international markets, the findings have implications for employment and the farm sector within rural development strategies.
Article
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A large number of developing countries are highly dependent upon exports of agricultural products, and for many of these countries the EU is the primary export market. For decades, however, the EU’s market for agricultural products was protected by high tariff barriers. These barriers were vigorously criticised; not least due to their adverse effects on developing countries’ exports. Today the tariff barriers have been lowered, but in their place a regime of stringent food safety requirements (‘sanitary and phytosanitary’ or ‘SPS’ requirements) has taken form (Ramaswamy and Viswanathan 2007, 124). This paper provides a legal analysis of some important aspects of the EU’s food safety regime and its consequences for developing countries. The objective is twofold, namely to identify those legal measures that cause the most problems for developing countries’ exporters of food products and to point to possible solutions. In section 2, the chapter first provides an outline of the EU’s food safety regime. Next, in section 3, the barriers to imports of food stuffs from developing countries created by the food safety regime are identified. In section 4 the chapter goes on to examine different ways of overcoming the barriers. Finally, in section 5 perspectives for the future are considered.
Book
Major questions surround who, how, and by what means should the interests of government, the private sector, or consumers hold authority and powers over decisions concerning the production and consumption of foods. This book examines the development of food policy and regulation following the BSE (mad cow disease) crisis of the late 1990s, and traces the changing relationships between three key sets of actors: private interests, such as the corporate retailers; public regulators, such as the EU directorates and UK agencies; and consumer groups at EU and national levels. The authors explore how these interests deal with the conundrum of continuing to stimulate a corporately organised and increasingly globalised food system at the same time as creating a public and consumer-based legitimate framework for it. The analysis develops a new model and synthesis of food policy and regulation which reassesses these public/private sector responsibilities with new evidence and theoretical insights.
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This paper explores the impact of sanitary and phytosanitary (SPS) measures in developed countries on developing country exports of agricultural and food products. It identifies the problems that developing countries face in meeting SPS requirements and how these relate to the nature of SPS measures and the compliance resources available to government and the supply chain. The paper examines the impact of the WTO's SPS Agreement on the extent to which SPS measures impede exports from developing countries. It identifies the problems that limit the participation of developing countries in the SPS Agreement and their concerns about the way in which it currently operates.
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This study describes the Colombian poultry industry's effort to improve safety standards of poultry products. It examines the institutional setting for food safety as well as the response of the industry to the challenge of producing a safer product able to compete in both quality and prices with imported chicken and with other locally produced meats. This private initiative shows that producer's organizations in developing countries can implement quality assurance programs as a strategy to compete. These industry's efforts have contributed to maintaining share in domestic markets, to improve producer's ability to compete in a global economy, as well as to comply with government regulations.
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Recent literature has provided evidence that exporters of agro-food products from developing countries experience problems in meeting sanitary and phytosanitary (SPS) measures of developed countries. The objective of this paper is to determine whether fishery products exporters from Mauritius, a southern African small island developing state, also face similar issues. It first provides an overview of fishery products exports from Mauritius, before reviewing SPS requirements facing exporters. This paper finally reports on the findings of a survey conducted among Mauritian fish exporters to assess the importance of SPS measures as a factor affecting exports. Results show that SPS requirements have not acted as a major barrier for Mauritian exports to the European market but in fact have provided them with a competitive edge. It was, however, acknowledged that SPS requirements and private voluntary standards, to a smaller extent, were increasing in importance. The most important reported factors affecting exports are freight, and other direct export costs. The findings also show that the majority of fishery exporters have adopted a reactive compliance strategy. It is therefore proposed that Mauritian exporters should adopt a more proactive approach in their compliance strategy, increasingly moving towards new market opportunities such as private food safety standards.
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Recent literature has provided evidence that exporters of agro-food products from developing countries experience problems in meeting sanitary and phytosanitary (SPS) measures of developed countries. The objective of this paper is to determine whether fishery products exporters from Mauritius, a southern African small island developing state, also face similar issues. It first provides an overview of fishery products exports from Mauritius, before reviewing SPS requirements facing exporters. This paper finally reports on the findings of a survey conducted among Mauritian fish exporters to assess the importance of SPS measures as a factor affecting exports. Results show that SPS requirements have not acted as a major barrier for Mauritian exports to the European market but in fact have provided them with a competitive edge. It was, however, acknowledged that SPS requirements and private voluntary standards, to a smaller extent, were increasing in importance. The most important reported factors affecting exports are freight, and other direct export costs. The findings also show that the majority of fishery exporters have adopted a reactive compliance strategy. It is therefore proposed that Mauritian exporters should adopt a more proactive approach in their compliance strategy, increasingly moving towards new market opportunities such as private food safety standards.
Article
Recent literature has provided evidence that exporters of agro-food products from developing countries experience problems in meeting sanitary and phytosanitary (SPS) measures of developed countries. The objective of this paper is to determine whether fishery products exporters from Mauritius, a Southern African small island developing state, also face similar issues. It first provides an overview of fishery products exports from Mauritius, before reviewing SPS requirements facing exporters. This paper finally reports on the findings of a survey conducted among Mauritian fish exporters to assess the importance of SPS measures as a factor affecting exports. Results show that SPS requirements have not acted as a major barrier for Mauritian exports to the European market but in fact have provided them with a competitive edge. It was however acknowledged that SPS requirements and private voluntary standards, to a smaller extent were increasing in importance. The most important reported factors affecting exports are freight, and other direct export costs. The findings also show that the majority of fishery exporters have adopted a reactive compliance strategy. It is therefore proposed that Mauritian exporters should adopt a more proactive approach in their compliance strategy, increasingly moving towards new market opportunities like private food safety standards.
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Full-text available
La iniciativa de inocuidad alimentaria del gobierno de Estados Unidos surge como respuesta a un problema de salud pública, y la búsqueda de solución origina una serie de reglamentaciones, que pueden convertirse en una barrera técnica al comercio (BTC), sobre todo para exportaciones de hortalizas frescas de países como México, que no cuentan con la tecnología y los recursos necesarios para adaptarse a los nuevos requerimientos. Se presume que la iniciativa afectará negativamente a México por dos razones: la concentración de las exportaciones de hortalizas a Estados Unidos y el alto costo de las inversiones necesarias para producir en condiciones de inocuidad. Se concluye que la implementación de la iniciativa actúa como barrera técnica a las exportaciones de hortalizas frescas de México, y contribuye a la pérdida de competitividad de este sector, tradicionalmente generador de divisas y empleo.
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Sanitary and phytosanitary (SPS) measures designed to protect human, animal and plant health, constitute a significant barrier to exports of agricultural products from developing countries. Though the WTO Agreement on the Application of Sanitary and Phytosanitary Measures places restrictions on SPS measures, regulations in major import markets are extremely complex and compliance beyond the means of many exporting countries. This report argues that for technical assistance to effectively redress the undesirable consequences of SPS measures, a cost-benefit framework should govern the allocation of assistance. To map the major SPS-related problems of developing countries, a set of indicators is suggested, consisting of reported problems and needs, inspection reports and third country lists, and detentions and alerts. For the capacity building needs thus uncovered, funds should be allocated to projects where the effect per dollar spent is the greatest, i.e. where the ratio of benefits to costs is the highest. Given the focus of SPS-related technical assistance, it is appropriate to measure benefits as export revenue generated, adjusted for differences in development. For compliance costs, suitable methods of calculation are reviewed.
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This paper considers the economic effects of regulatory barriers on international food trade and the implications of the barriers for policy makers and U.S. agribusinesses interested in expanding into foreign markets. The primary objective of this paper is to call attention to the more complex economics of nontraditional trade barriers, such as regulatory barriers, and stimulate more serious research and teaching on the topic.
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This research identifies the principal forces behind the proliferation and growth of nontariff trade measures (NTM) on agricultural products. They include a structural gap between demand and supply elasticities, farm income problems, structural changes in the household, technological innovations, product proliferation and environmental concerns. After examining the total number of NTM, their frequency, diversity, and stacking, it is concluded that the use of NTM is widespread. The three most frequently used NTM in each country are direct trade restrictions such as quotas and permits. These measures are generally considered to be quite restrictive. ©1994 by John Wiley & Sons, lnc.
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U.S.-Asian trade currently represents about 35% of the total value of U.S. agricultural and food trade. Country-by-country comparisons show significant differences in level of food safety regulations in the U.S., Japan, newly industrialized countries in Asia, and Asian developing countries. These disparities result in significantly different import requirements that may impede trade in agricultural and food products.
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Contact for this paper: Donna Roberts, USTR Mission to WTO, 11, RUE de Pregny, CH 1292 Chambesy, Geneva, Switzerland
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Sanitary and phytosanitary (SPS) measures that regulate movement of products across international borders are necessary to protect public health or the environment, but may also be used to protect domestic producers from international competition. The recent WTO Agreement on the Application of SPS Measures aims to create a set of multilateral trade rules which allows the legitimate use of trade regulations for health and environmental protection, while disallowing their use for mercantilist regulatory protectionism. This paper examines WTO jurisprudence, negotiated settlements of formal complaints, and unilateral implementation of Agreement's provisions since its entry into force to evaluate whether and how the Agreement has served the interests of the world trading system. Copyright 1998 by Oxford University Press.
Implementation of the transparency obligations as of 4 Committee on san-itary and phytosanitary measures Special and differential treatment and technical assistance International harmonization of standards
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Geneva: Author. WTO. (1998a). Implementation of the transparency obligations as of 4 June 1998, Committee on san-itary and phytosanitary measures (G/SPS/GEN/27/Rev.3). Geneva: Author. WTO. (1998b). Special and differential treatment and technical assistance. Submission by India (G/ SPS/GEN/85). Geneva: Author. WTO. (1998c). Transparency. Submission by India (G/SPS/GEN/86). Geneva: Author. WTO. (1998d). International harmonization of standards, Submission by India (G/SPS/GEN/94).
The SPS agreement and developing countries Implementation of WTO provisions in favor of developing country members
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Geneva: Author. WTO. (1998e). The SPS agreement and developing countries (G/SPS/W/93). Geneva: Author. WTO. (1998f). Implementation of WTO provisions in favor of developing country members (WT/ COMTD/W/35). Geneva: Author.