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Food Safety Issues, Trade and WTO Rules: A Developing Country Perspective
Abstract
The SPS Agreement and the related WTO dispute settlement mechanism are an important first step in strengthening the global trade architecture, bringing in greater transparency and orderly conditions to world food trade. However, implementation of the new trade rules has turned out to be a more complex task than the traditional market access issues handled by the WTO. Several factors, including inadequate financial and technical resources, have constrained devel-oping countries from becoming effective participants in the implementation process, and there is widespread suspicion that SPS regulations are being used as hidden protectionist devices by developed countries. However, despite all the problems, some developing countries have been quite successful in penetrating developed country food markets; they have done so by accepting the consumer preferences and standards in quality-sensitive high-income markets and implementing domestic supply-side measures. While making full use of available international assistance initiatives, developing countries should view the task of complying with SPS standards not just as a barrier but also as an opportunity to upgrade quality standards and market sophistication in the food export sector. Copyright Blackwell Publishing Ltd 2003.
... Considering the positive influence of standards on developing countries, standardization and standards have drawn attention from a number of studies as they are closely associated with the sustainable development of developing countries [28][29][30][31]. Various countries and organizations, such as the WTO, conducted and participated in AfT following this global movement [14,[30][31][32][33][34]. ...
... Considering the positive influence of standards on developing countries, standardization and standards have drawn attention from a number of studies as they are closely associated with the sustainable development of developing countries [28][29][30][31]. Various countries and organizations, such as the WTO, conducted and participated in AfT following this global movement [14,[30][31][32][33][34]. The WTO launched the AfT initiative in 2005 at the WTO's Hong Kong Ministerial Conference to promote the trade of developing countries [19,32,33]. ...
... Examples include donor country provision of infrastructure, such as test laboratories for product testing and electronic systems for trade; training for human resources in testing and calibration fields; or training for governmental authorities in charge of the implementation of the WTO Technical Barriers to Trade (TBT) agreement [29]. Trade capacity and standards-related capacity are closely associated with each other, as trade capacity is preceded by standards-related capacity building, since standards-related capacities, such as certification, conformity assessment, and TBT, are key to entering the target export market [31]. Brunsson et al. [26] supported the strong connection between standards-related capacity and trade by suggesting that the conformity assessment system has a crucial influence on the trade performance of countries, as it is associated with national trade capacity, such as the operation of a national standardization system and human resources for testing and certification. ...
Many countries provide standards-related aid for trade (AfT) to developing countries in association with the United Nations Sustainable Development Goals (SDGs), such as sharing their experiences and providing training or infrastructure. Regarding the influence of standards-related AfT on the sustainable development of developing countries, we studied Korea’s standards-related AfT program to examine the role and features of standards-related AfT in terms of standards-related capacity building. In this study, we conducted a single case study with a focus on Korea’s standards-related AfT in Bolivia using qualitative descriptive analysis. The result indicated that Korea’s standards-related AfT is associated with three pillars of sustainable development in terms of standards-related capacity, namely standardization, conformity assessment, and metrology, and can be summarized with two key tasks: building testing infrastructure and improving Technical Barriers to Trade (TBT) capacity. However, several limitations were found in Korea’s standards-related capacity building activities, such as limited scope, limited target of the program, and the lack of activities for building institutional foundations for standards-related capacity.
... This structural change in world exports has been underpinned by both demand and supply factors. On the demand side, rising income levels, urbanisation, immigration, and internationalisation of food habits have contributed to an increase in the consumption of imported processed food, mostly in developed countries (Athukorala and Jayasuriya, 2003;Euromonitor International, 2012). On the supply side, an expansion of processed food has increased notably, thanks to advances in the technology of food processing, improvement in refrigeration, global transportation facilities, and the expansions of contract farming opportunities for an ever-wider variety of food products driven by the supermarket revolution. ...
... The export opportunity in processed food deserves special attention in the context of agricultural resource-rich countries for the following reasons (Athukorala and Jayasuriya, 2003;Niimi et al., 2007;Wilkinson, 2012;Baiardi et al., 2015;Zahniser et al., 2017). First, most processed food products have considerably high domestic input content (greater domestic value-added), compared to conventional labour-intensive manufactured products such as garments, footwear and electronic assembly. ...
There has been a growing emphasis in resource‐rich developing countries on promoting processed food exports as part of their export expansion and diversification strategy. A key issue for this strategy is whether global market conditions are conducive for significant trade gains. We estimate price and income elasticities of demand for processed food exports from developing countries using a new quarterly panel dataset for the United States, the major market for these products, over the period 1992–2018. Our findings indicate that demand for processed food imports from developing countries has high‐income elasticity combined with low‐price elasticity. The implication is that expansion of imports is driven by demand expansion driven by income growth which counterbalances any possible negative impact of an increase in relative prices. Income elasticity of demand for processed food imports is much higher than that for unprocessed food imports, reflecting preferences for processed food.
... Entre os desafios para que esses países participem do mercado mundial está o de atender aos padrões de qualidade e segurança alimentares cada vez mais exigentes. A mudança na exigência está relacionada aos avanços científicos associados aos riscos à saúde, às melhorias na tecnologia do processamento alimentar e à cobrança do consumidor por padrões de segurança sanitária (Athukorala e Jayasuriya, 2003). ...
... Os padrões de qualidade e segurança alimentares privados são anunciados como a linguagem única para a circulação de produtos em um ambiente diagnosticado pela NEI como cada vez mais homogeneizado. O pressuposto é a exigência cada vez maior dos consumidores por esses padrões, além da alta concentração de mercado promovida pelas redes varejistas (as quais atendem de maneira eficiente os desejos do consumidor) em plano mundial (Athukorala e Jayasuriya, 2003). Farina e Reardon (2000) destacam como singularidade do caso brasileiro uma rápida concentração em cadeias de produtos-chave e, consequentemente, a exclusão de pequenas firmas e produtores com o rápido crescimento de economias alimentares de exportação e domésticas. ...
Private food quality and safety standards are emerging as "the" language of the food industry. The Brazilian market is experiencing the decline of the CEASAs, or Wholesale Produce Markets, and the expansion of supermarkets, including in the distribution of fresh produce. This growth is interpreted by the New Institutional Economy as the efficiency of private quality systems as compared to the purportedly inefficient public systems. Based on the political and cultural approach of the New Economic Sociology (NES), the article challenges the evidential nature of the institutions' efficiency, as well as the definition of quality and safety as neutral concepts. Based on the NES approach, these concepts can be seen as cultural constructs.
Keywords : wholesale produce markets; supermarkets; safety and quality standards; new economic sociology; fresh produce.
... As consumers' disposable income rises and their awareness of healthy and hygienic food products grows, the significance of food standards is predicted to increase. Significant challenge for many developing nations is their inability to comply with even the most fundamental standards for food safety and hygiene (Athukorala and Jayasuriya, 2003). However, these standards must be grounded in scientific evidence and should only be applied as necessary to safeguard human, animal or plant life and health. ...
Due to the growth of international trade, ensuring the safety and quality of food products has become increasingly important. To address this need, the World Trade Organization (WTO) introduced the Sanitary and Phytosanitary (SPS) Agreement in 1995. This agreement enables member countries to establish their own standards for imported products to safeguard human, animal, and plant health. The current article examines the impact of various SPS measures on Indian horticulture exports. Spices, fresh and processed fruits and vegetables faced higher number of rejections of consignments and notifications issued by the US market mainly on account of having filth, pesticide residues, microbial contamination and non-compliance of other mandatory technical parameters. Out of 1970 rejected product 453 were horticultural product during April 2018 to March 2019. Maximum rejection had got to spices (320) followed by fruits (64) and vegetables (50) by US FDA.
... Additionally, challenges in meeting stringent international standards can hinder market access for local producers. For example, many African agricultural products face barriers in entering European markets due to stringent health and safety standards (Athukorala & Jayasuriya, 2003). ...
This article examines the multifaceted impacts of global trade policies on developing economies, highlighting both opportunities and challenges. Global trade policies, encompassing tariffs, quotas, and trade agreements, play a critical role in shaping economic landscapes. For developing nations, characterized by lower income levels, less industrialization, and higher agricultural dependency, these policies hold particular significance. The analysis reveals how trade policies can drive economic growth, technology transfer, employment generation, and foreign direct investment. Conversely, exposure to volatile global markets, risks of deindustrialization, trade imbalances, and stringent international standards pose significant challenges. Through case studies of successful integrations like South Korea and struggling economies like Malawi, the article provides a balanced perspective. It offers policy recommendations to strengthen domestic capacities, enhance trade negotiations, and mitigate negative impacts, aiming to optimize the benefits of global trade for sustainable and inclusive development. The study underscores the importance of balanced and equitable trade policies and global cooperation in fostering economic prosperity in developing countries.
... 64 Although this instrument does not state its relationship with the Codex Alimentarius, like the SPS agreements, it shares a common basis with the latter because it sets out the 56 Hall et al. (2004), p. 438. 57 Aloui and Kenny (2005), pp. 4, 8. 58 Athukorala and Jayasuriya (2003), pp. 1395, 1396, 1404, 1411 Woods and Narlikar (2001) requirements and conditions that foodstuffs must satisfy in order to be exported or imported to ensure that they are not harmful to human health. ...
In ancient times, the great empires used food as a payment or offering to the gods, but it was not until the emergence of capitalism, as a social-economic formation, that food began to acquire the characteristics of a commodity. The World Trade Organisation (WTO) establishes world trade rules and focuses on organising fair, predictable, free trade between states. Foodstuffs do not escape the regulations of this organisation as tradable goods. In this sense, WTO rules on food increase the process of commodification and generate various harmful effects. In this respect, this process is one of the underlying causes of food disorders; it affects biodiversity and the environment and undermines cultural traditions, local food markets and the State’s food sovereignty. This contribution aims to assess the impact of WTO rules on food commodification; concerning the human right to food and the unresolved issues at the international level. In addition, the research combines an exegetical study of WTO legal instruments such as the SPS, TBT and Agreement on Agriculture. The study combines several research methods used in legal and social studies as the legal-doctrinal method, document analysis, historical method and, in a certain way, some legal-empirical research.
... Diarrheal diseases constitute the most common 421 illnesses arising from the intake of contaminated food, causing up to 550 million people becoming ill and 230,000 deaths annually [3]. Currently, the global dimensions within food supply chains are challenging food safety procedures [1,4,5]. Food within the network of national or international market may become frauded at any or different stages of the chain such as manufacturing, co-packing, distribution and others [6,7,8]. ...
... The movement of goods is frequently difficult for them to see. According to the WTO [78], access to trade finance is becoming more competitive as regulation forces financiers to reduce margins and take on fewer trade finance liabilities. They also have limited capacity to track assets or identify and address emerging issues of product quality, logistics or transportation. ...
Maritime transportation plays a critical role for many Arab countries and their food security and has evolved into a complex system that involves a plethora of supply chain stakeholders spread around the globe. This inherent complexity brings huge security challenges, including cargo loss and high burdens in cargo document inspection. The emerging blockchain technology provides a promising tool to build a unified maritime cargo tracking system critical for cargo security. This is because blockchains are a tamper-proof distributed ledger technology that can store and track data in a secure and transparent manner. Using the State of Qatar as a case study, this research introduces the Global Maritime Ledger (GM-Ledger), which will aid authorities in verifying, signing and transacting food certificates in an efficient manner. The methodology of this research includes reviewing past publications, identifying the requirements of various players in the Qatari food import–export industry and then creating a smart contract framework that will efficiently manage the work with necessary human intervention as and when required. The result of this work is the formation of a solid framework that can be employed in future works. This work realized that employing web3 solutions for the food import sector is highly viable and that with the right social, economic and policy reforms, it is possible to transform the entire food system to bear healthy transparency and power balance in global supply chains. In conclusion, this study argues that BCT has the ability to assist the government and other players to minimize fraud and maximize food supply chain stakeholder participation.
... In the last two decades, the global trade form has changed from raw to processed animal food trade. For developed countries, this paradigm shift in trade has increased exponentially by more than 50%, accompanied by safety concerns of these processed items being a major cause of disputes at WTO-DSS (Athukorala and Jayasuriya, 2003). In addition, developed countries have been accused of providing subsidized fodder and animal products to world trade, inviting disputes under WTO-DSS. ...
This article reports some initial findings based on the enriched data set that the author has compiled for her research. With precisely 51220 observations, this paper covers all 412 WTO disputes initiated by a developed country against another developed country through the official filing of a Request for Consultations from January 1995 until December 2022. The statistical information that we present here is divided into four distributional units namely the country unit, the agreement unit, the subject unit, and finally the time unit. One remarkable contribution of this paper is the reclassification of highly integrated dispute subjects into a highly disintegrated class of subject issues.
... Traceability is also a valid strategy to protect consumer health in both developed and developing nations [60]. However, adhering to traceability requirements is a challenging task for developing nations due to their limited financial resources as well as the lack of material and immaterial infrastructure [61,62]. Specifically, developing nations often lack the administrative facilities to handle the complex certification process needed to fully implement traceability [63]. ...
Fish products comprise more than 20% of total Ecuadorian exports. Ecuador introduced the “National Green Export Review” (NGER) in 2015, which aims at making Ecuador’s fishing industry more sustainable to improve the international market access to Ecuador’s fish products. Has this policy achieved its goal? In order to answer this question, this article applies the local projection approach to explore the dynamic impact of the NGER on Ecuador’s share of fish exports in the world fish market. Contrary to expectations, the results are consistent with the view that the NGER does not enhance Ecuador’s competitiveness. The NGER is also not able to compensate for the fall in Ecuador’s share in the world fish market, which has been induced by a change in consumer preferences for tuna and shrimp, Ecuador’s main fish products. The concluding section of the paper provides policy advice on how to make the NGER more effective in achieving its goal.
... India reported a better comparative advantage over China and Indonesia on the global market. Lack of financial and technical resources and widespread suspicion that developed nations were using SPS regulations as covert protectionist tools have prevented developing countries from effectively participating in the implementation process[13]. These findings suggested that there was still scope for India to enhance the exports of mangoes. ...
India is one of the leading producers of mango in the world, contributing more than half of the global mango supply. India exported 27,872.77 MT of mangoes in 2021–2022. Due to the Sanitary and Phyto Sanitary issues, India's export share in recent years was insignificant. Hence, this study focussed on estimating the export competitiveness of mango from the year 2006 to 2020 for India and major exporting countries. The study analysed the time series data of mango and total agricultural commodity export for India and major competitive countries at world level, which have arrived from Agricultural and Processed Food Products Export Development Authority and UN Comtrade. This have been resulted in positive value where Thailand, Pakistan and Brazil had Revealed Comparative Advantages values greater than one throughout the period. It indicated that, these countries had comparative advantages of mangoes. The RCA value of India was below one. However, by following Good Agricultural practices (GAPs), Indian mangoes might still find a market on a worldwide scale.
... The harmonisation of standards allows exporters to venture into different markets while experience lower costs of exports as they avoid cost to comply to different standards (Moenius, 2004;Fontagne, von Kirbach and Mimouni, 2005;). Compliance to standards also allows exporters to be competitive in foreign markets, and bigger access to consumers would later offset the compliance cost through economies of scale (Maskus, Wilson and Otsuki, 2001;Athukorala and Jayasuria, 2003;Chen, Wilson and Otsuki, 2008). Chen, Wilson and Otsuki (2008) indicated that standards and labelling requirements have positive correlation with export volume and export scope (measurement based on number of export products and export markets). ...
... Food safety issues are of high significance not in recent times, but priority began centuries ago (Schmidt and Rodrick 2003). However, a number of emerging threats with the existing driving forces make this issue even more serious now (Athukorala and Jayasuriya 2003;Kendall et al. 2018). Advancement in diagnostic technologies and media communications have increasingly revealed the risks of FBDs over the past few decades (Roberts 2001). ...
Access to nutrition and safe food is a key to sustaining life and promoting good
health. Thus, the sustainable development goals (SDGs) reawaken the world
alluding to the interweaving connects of health, nutrition, and food safety. This chapter introduces the current scenario of nutrition and food safety and how both
traverse important issues in health including the trends of morbidity and mortality
as well as the social determinants of health. Furthermore, key elements of
nutrition and food safety will be introduced to further explicate how factors and
drivers shape and influence food supply including production and access, food
safety, and consumer behavior and practices. Finally, we argue how considerable
efforts have been made drawing on the current context of changing nutrition and
food safety driven by multiple factors embracing externalities, and endogenous
factors are being contested and negotiated to make an impact on health equity at a
global scale. To further the progress of the SDGs, we conclude with propositions
to support international organizations, national government, and local stakeholders to work not in sectoral fragmentation, but together. With the appropriate
commitment, investment, and actions at global, regional, and country level, no
one will be left behind from attaining good health by reinforcing synergies and
trade-offs among SDGs related to nutrition and food safety
... A study conducted by Athukorala and Jayasuriya (2003) reached a different approach, which is standards typically much higher than those existing in developing countries, and often difficult and costly to meet, but they are also subject to frequent changes. Changes are caused by scientific knowledge about health hazards, improvements in food processing technology and highly incomeelastic consumer preferences for higher safety standards. ...
... However, meeting those standards is asymmetrical, depending on the exporting country. The ability to meet these standards depends on production facilities and infrastructure, which is not uniform for all countries and is available in the developed world but lacking in developing countries (Athukorala and Jayasuriya, 2003). It causes a lot of mismatches between the developed world and the developing world, and SPS measures start to feel like NTMs. ...
Over the years, especially since 2012, have faced rejections of its consignments exported to developed countries in agricultural products. Keeping this in mind, the research question explored in this study is, do the SPS-based MRLs hinder the exports of India’s fruits? An analysis of five fruits like Mango, Papaya, Grapes, Orange and Banana across ten markets the USA, EU, UK, UAE, Japan, Netherlands, Oman, Qatar and Malaysia.
The study’s main objective is to investigate if tolerance levels on active substances (SPS-based NTM) act as a trade barrier (NTBs) for India’s fruit exports across the ten trading partners. The empirical methodology chosen to study the mentioned objective is the gravity model. To include SPS-based MRLs, a novel method has been used wherein the pesticides have been divided into five categories using CODEX values as references. The index has been constructed using a weighted average where a higher value of the index indicates higher stringency. These weighted average indexes have then been introduced in the gravity model. The study results indicate India’s exports of five fruits decrease as the stringency of MRLs increases.
It may be that India has not been able to meet such high thresholds imposed by the developed countries. Or it could also be that some of these are national thresholds not harmonised by the standard development organisations (SDOs); in this case, CODEX and the risk assessment dossiers for the same have not been provided transparently. There is a need to review the process and procedure of notification of SPS measures at the WTO. Therefore, these MRLs are acting as a market access barrier for India’s fruit exports. Sanitary and Phytosanitary measures often act as a non-tariff barrier against developing countries, although it was introduced as a non-tariff measure when WTO came into existence in 1995.
... The food processing sector has recently received attention within the framework of export-led industrialization in developing countries (Wilkinson, 2008). The increased wealth, higher purchasing power, changed food habits had resulted in demand for processed food especially in developed countries (Athukorala and Jayasuriya, 2003;Godfray et al, 2010;Euromonitor International, 2012). The technological advancement in food processing, improvement in cold storage and transportation facilities, contract farming and supermarket revolution has resulted in greater supply of processed food in the global market (Suanin, 2020). ...
The study has examined the trend, potential and the issues in export of processed food from India to the European Union (EU) based on the secondary data for the period 2005 to 2019. India exports around 12 per cent of processed food to EU and export has registered a real growth rate of 5 per cent during the study period. Netherlands is the major destination of among EU countries and fisheries products are the major items among processed food products. India still has to achieve the export potential in major products like crustaceans and its preparations,tea,vegetable oils, and oil cakes eventhough they exhibits comparative advantage in EU market. India do not have comparative advantage in fruit juices,cereal preparations and vegetable oils in the EU. Strigent product standards of EU are affecting India's exports especially in fisheries products, animal feed, fruits and vegetable preparations as indicated by the rejection analysis. The recent reforms initiated by the government for the compliance of EU product standards are in right directions. The trade facilitation and good agricultural and manufacturing practices at the farm and firm level are important in order to harness the export potential and increase market share in EU. JEL Codes: Q170, Q100, F130 #19376 Processed food export from India to European Union: Trend and potential Abstract The study has examined the trend, potential and issues in export of processed food from India to the European Union (EU) based on the secondary data for the period 2005 to 2019. India exports around 12 per cent of processed food to EU and export has registered a real growth rate of 5 per cent during the study period. Netherlands is the major destination of among EU countries and fisheries products are the major items among processed food products. India still has to achieve the export potential in major products like crustaceans and its preparations,tea,vegetable oils, and oil cakes eventhough they exhibits comparative advantage in EU market. India do not have comparative advantage in fruit juices,cereal preparations and vegetable oils in the EU. Strigent product standards of EU are affecting India's exports especially in fisheries products, animal feed, fruits and vegetable preparations as indicated by the rejection analysis. The recent reforms initiated by the government for the compliance of EU product standards are in right directions. The trade facilitation and good agricultural and manufacturing practices at the farm and firm level are important in order to harness the export potential and increase market share in EU. JEL Codes: Q170, Q100, F130
... Depuis 2013, les exportations africaines vers l'UE n'ont cessé d'augmenter et se sont élevées à plus de 116 milliards d'euros en 2016. 2 Les pays en développement ont tendance à se méfier des réglementations commerciales et les considèrent souvent comme des mesures protectionnistes et d'exploitation. Alors que les restrictions et les mesures commerciales continuent de faire obstacle au commerce international, les mesures sanitaires et phytosanitaires (SPS) s'efforcent de protéger la vie et la santé des personnes, des animaux et des plantes, tout en s'attaquant aux obstacles inutiles au commerce. ...
Manuels de bonnes pratiques applicables aux filières des produits céphalopodes, du miel et des fruits rouges Exigences liées aux mesures sanitaires et phytosanitaires à l'exportation vers l'UE.
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Manuals of good practice applicable to the cephalopod products, honey and red fruit sectors Requirements related to sanitary and phytosanitary measures for export to the EU.
... Depuis 2013, les exportations africaines vers l'UE n'ont cessé d'augmenter et se sont élevées à plus de 116 milliards d'euros en 2016. 2 Les pays en développement ont tendance à se méfier des réglementations commerciales et les considèrent souvent comme des mesures protectionnistes et d'exploitation. Alors que les restrictions et les mesures commerciales continuent de faire obstacle au commerce international, les mesures sanitaires et phytosanitaires (SPS) s'efforcent de protéger la vie et la santé des personnes, des animaux et des plantes, tout en s'attaquant aux obstacles inutiles au commerce. ...
... ' 6 While these measures establish the basic rules for food safety and animal and plant health standards, they ensure that consumers are being supplied with safe and healthy foods and, also endeavour to avoid unnecessary and arbitrary barriers to trade. 7 The Agreement calls on member countries to apply the appropriate level of SPS measures and simultaneously avoid 'discrimination or disguised restriction on international trade.' 8 It has, indeed, been rightly acknowledged that technical measures such as the SPS measures do impede trade but noncompliance with these measures has far greater negative consequences. Not only does the rejection of an entire shipment at the port of entry result in a 'loss of both the revenue expected from the sale of the goods and the costs of their 6 https://www.wto.org/english/tratop_e/sps_e/spsund_e.htm 7 http://spsims.wto.org/ 8 WTO 'The Legal Texts' p62 9 http://www.cuts-geneva.org/pdf/KP2018-Paper-Importance_and_Implications_of_SPS_Measures_in_MENA.pd ...
This study for Ghana focuses on the international standards established under the Agreement on Sanitary and Phytosanitary (SPS) measures, and on how these measures can help Micro, Small and Medium-sized Enterprises (MSMEs) in Africa to trade better with the international markets. It highlights how compliance with SPS measures, and better cooperation between importing and exporting countries in this area, strengthens both trade and market access while respecting health regulations.
... ' 6 While these measures establish the basic rules for food safety and animal and plant health standards, they ensure that consumers are being supplied with safe and healthy foods and, also endeavour to avoid unnecessary and arbitrary barriers to trade. 7 The Agreement calls on member countries to apply the appropriate level of SPS measures and simultaneously avoid 'discrimination or disguised restriction on international trade.' 8 It has, indeed, been rightly acknowledged that technical measures such as the SPS measures do impede trade but noncompliance with these measures has far greater negative consequences. Not only does the rejection of an entire shipment at the port of entry result in a 'loss of both the revenue expected from the sale of the goods and the costs of their 6 https://www.wto.org/english/tratop_e/sps_e/spsund_e.htm 7 http://spsims.wto.org/ 8 WTO 'The Legal Texts' p62 9 http://www.cuts-geneva.org/pdf/KP2018-Paper-Importance_and_Implications_of_SPS_Measures_in_MENA.pd ...
This study for Ghana focuses on the international standards established under the Agreement on Sanitary and Phytosanitary (SPS) measures, and on how these measures can help Micro, Small and Medium-sized Enterprises (MSMEs) in Africa to trade better with the international markets. It highlights how compliance with SPS measures, and better cooperation between importing and exporting countries in this area, strengthens both trade and market access while respecting health regulations.
... 2) A change in consumer behavior in both emerging countries (as income increased rapidly) and in advanced ones (Sun & Li, 2018). 3) Major technological changes that allows more extensive trade in processed food (Athukorala & Jayasuriya, 2003). 4) Large shocks in prices, global demand, and exchange rate during the period of study (Hegerty, 2016). ...
This paper analyses determinants of agricultural exports and imports from Indonesia, including a set of demand and supply factors capturing effects of income, market size, prices, tariffs, exchange rates and variables related to logistics, competitiveness, trade policy, and innovation. A specific focus is on trade creation and diversion effects possibly arising as Indonesia experienced a deep liberalization of markets through the implementation of multiple Free Trade Agreements (FTAs). A gravity model helps to analyze the determinants of trade and the impacts of the various trade agreements, applied to two categories of agricultural exports: raw goods and food. The dataset comprises 50 countries with data on exports and imports from 2007 until 2017. The results find trade creation effects for both categories, with larger effects in exports within agricultural raw goods, and higher trade creation effects through imports in food. Indonesia also experienced trade expansion with non-free trade partners, suggesting that demand variables (e.g., income, market size, sophistication) are a more critical driver of growth rather than agreements. Price factors affect agricultural goods, with food products experiencing elastic price demand, while raw goods are affected by prices and exchange rate. Gains in competitiveness, logistics performance, and innovation is supporting agricultural exports (imports as well), although Indonesia is behind most of its trade partners. The current implementation of the FTA should be critically evaluated concerning food products as imports have expanded more rapidly than exports, and domestic goods may have experienced pressure from liberalization.
... Food safety is being challenged nowadays by the global dimensions of food supply chains [1,4,5]. Foods in the international market may be frauded as different parties such as manufacturers, co-packers, distributors, and others along the chain of distribution involve in the national or international trade [6][7][8]. ...
Background:
Food safety in the food market is one of the key areas of focus in public health, because it affects people of every age, race, gender, and income level around the world. The local and international food marketing continues to have significant impacts on food safety and health of the public. Food supply chains now cross multiple national borders which increase the internationalization of health risks. This systematic review of literature was, therefore, conducted to identify common public health risks related to food safety issues in the food market.
Methods:
All published and unpublished quantitative, qualitative, and mixed method studies were searched from electronic databases using a three step searching. Analytical framework was developed using the PICo (population, phenomena of interest, and context) method. The methodological quality of the included studies was assessed using mixed methods appraisal tool (MMAT) version 2018. The included full-text articles were qualitatively analyzed using emergent thematic analysis approach to identify key concepts and coded them into related non-mutually exclusive themes. We then synthesized each theme by comparing the discussion and conclusion of the included articles. Emergent themes were identified based on meticulous and systematic reading. Coding and interpreting the data were refined during analysis.
Results:
The analysis of 81 full-text articles resulted in seven common public health risks related with food safety in the food market. Microbial contamination of foods, chemical contamination of foods, food adulteration, misuse of food additives, mislabeling, genetically modified foods (GM foods), and outdated foods or foods past their use-by dates were the identified food safety-related public health risks in the food market.
Conclusion:
This systematic literature review identified common food safety-related public health risks in the food market. The results imply that the local and international food marketing continues to have significant impacts on health of the public. The food market increases internationalization of health risks as the food supply chains cross multiple national borders. Therefore, effective national risk-based food control systems are essential to protect the health and safety of the public. Countries need also assure the safety and quality of their foods entering international trade and ensure that imported foods conform to national requirements.
... 41 In addition to this general belief, developing countries have frequently incurred in SPSs' crises. . 41 Athukorala and Jayasuriya (2003). A measure that establishes a maximum residue limit (MRL) or tolerance limit of substances such as fertilisers, pesticides, and certain chemicals and metals in food and feed, which are used during their production process but are not their intended ingredients. ...
The contribution shows the state of the art of “trade and non-tariff measures” debate in the agri-food sector. It provides an overview on trends in trade and in the level of policy interventions over the last decades, in order to shed lights on potential cause-effect relations. Comparing the evolution of trade and of non-tariff measures (NTMs) in agri-food sector, it appears that the pervasiveness of NTMs is likely to be strictly related to changes in trade patterns. Although the main scope of NTMs is to correct market inefficiencies, they may have a twofold role: trade catalysts or trade barriers. The potential relationships between trade and NTMs, however, differ across involved countries, products under regulation, and types of measure. Indeed, evidence from the empirical literature support either the “standards as catalysts” and the “standards as barriers” points of view. Our contribution aims at outlining how NTMs and trade influence each other.
... . 그러므로 이에 대한 개발협력 수요가 크다고 볼 수 있다 (Athukorala and Jayasuriya, 2003;Finger, 2001;OECD and WTO, 2013;Shin et al., 2017b). ...
The export of agricultural, fisheries, and food products acts as an engine of growth for developing countries in particular. However, exporting these items is easier said than done since issues of certification and inspection, so-called technical barriers to trade (TBT) and sanitary and phytosanitary measures (SPS), in developed markets have worked as major obstacles for exports. This paper examines the institutional aspects and recent trends of South Korea's TBT/SPS-related cases against exporting firms of the developing countries. We suggest a win-win partnership model that can promote cooperative synergies between Korea and developing employing trade-related technical cooperation or ODA (Official Development Aid). Technical cooperation such as the provision of on-spot field consulting services on TBT/SPS-related issues for exporting firms and Korean OEM firms of developing countries can lead to mutual gains. This cooperative partnership can create gains from "the trade-development nexus" for both sides while promoting sustainable trade and investment relationships between Korea and developing countries.
... In other words, SPS and other technical standards reduce consumers' uncertainty regarding product quality and improve consumers' confidence. By the same channel, i.e., if SPS and other technical standards serve to signal quality, technical NTMs may additionally increase the elasticity of substitution among similar goods, favoring more efficient producers (Athukorala and Jayasuriya 2003). Additionally, the economic impact of technical NTMs has been described as dependent to the level of development of the exporter (and less often of the importer). ...
... Globally, NTMs are increasingly used to protect the consumers, encourage the adjustment of production and influence trade processes to ensure compliance with human rights and environment safeguards. However, some of the changes have triggered strong suspicions that food safety standards are being used as a non-transparent, trade impeding protectionist tools (Athukorala and Jayasuriya, 2003). The changes of tariffs and NTMs in a country can create negative and positive spillover effects on sustainable development. ...
Non-tariff measures (NTMs) can affect trade performance of trading partners. In addition to trade performance, the NTMs (including sanctions) may have direct and indirect linkages to capacity of trading partners to meet their commitments under Sustainable Development Goals (SDGs). The purposes of this research were to explore the performance of exports of seafood industry of Sri Lanka before, during and after the imposition of European Union’s ban and to develop indicators and measure the impact of the same ban on stakeholders of the seafood industry in Sri Lanka by looking through the prism of sustainable development. More specifically, this study applied composite indicator approach with min-max normalization, arithmetic mean aggregations and weighting techniques to assess impact on several of SDGs. The principal component analysis was performed to identify the best sub-indicators for the composite indicator. During the period when the ban was in force, Sri Lanka seafood industry experienced lower revealed competitive advantage score, market concentration score and growth rate than at other times. Further, the findings revealed that the ban generated mixed effects on SDGs. Due to the ban, SDG 12 (responsible production) and SDG 14 (life below water) have been positively impacted while SDG 1 (no poverty) and SDG 8 (economic growth) were adversely affected. The research recommends that unilateral and ad hoc decisions should not be taken regarding NTMs because they have very sensitive and invisible linkages with SDGs. Furthermore, when there are legitimate need to impose such NTMs, sufficient time should be given to the trading partners to put in place measures and actions for compliance with such NTMs.
... Developing countries find SPS measures to be a source of tension and friction in international trade but maintaining such measures can also create dynamic exports growth for them. So, thereby establishing a SPS standard facilitates trade by providing consumer standard food and reducing transaction cost for the exporters [21]. Table V highlights that nine complaints have been raised by the European Commission against India, related to trade of agro and other related agro-products through the Dispute Settlement Body of the WTO. ...
... Developing countries find SPS measures to be a source of tension and friction in international trade but maintaining such measures can also create dynamic exports growth for them. So, thereby establishing a SPS standard facilitates trade by providing consumer standard food and reducing transaction cost for the exporters [21]. Table V highlights that nine complaints have been raised by the European Commission against India, related to trade of agro and other related agro-products through the Dispute Settlement Body of the WTO. ...
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.
... In trade between countries with different levels of economic development, the number of policy measures changes drastically if imposed by North or by South: NTMs implemented by South against North are rather scant (87 measures in 2016) compared to NTMs adopted by North against South (169 measures in 2016) (UNCTAD, 2017). The frequent adoption of country-soecific NTMs by developed countries may lead to a non-transparent trade policy environment(Athukorala and Jayasuriya, 2003;Fernandes et al., 2017): the consequences may be detrimental in particular for trade from developing countries of NWP (e.g. Argentina, ...
During the last decades, significant changes in trade regulations are modifying the global trade of wine. The number of non-tariff measures (NTMs) implemented in the wine sector is relevant: a large number of country-specific NTMs, set in the occasion of trade agreements, have been adopted. The impact of these policy instruments on trade is not always clear, nor quantified at global scale. We investigate the effects that country-specific NTMs are showing on global imports of wine. In particular, we estimate a gravity model to explain how and to what extent country-specific NTMs influence wine trade, and we disentangle these effects for different segments of the international market of wine.
Our results suggest that country-specific NTMs tend to favour imports of wine. Differences emerge across market segments and types of regulations. In particular, the Technical Barriers to Trade favour (friction) bottled (bulk) wine; pre-shipment inspections enhance imports of bottled wine; the Sanitary and Phytosanitary Standards and the export-related measures are the most trade-enhancing NTMs, regardless of the market segment.
... In recent years, these emerging food safety issues can also be attributed to newly established factors and trends, such as the globalization of the food supply chain (Trienekens & Zuurbier, 2008); growing consumer demand for minimally processed foods, especially fresh produce; and a surge in organic produce consumption (Brackett, 1999;Harvey, Zakhour, & Gould, 2016;Mercanoglu Taban & Halkman, 2011). Modern supermarkets are full of products that are out of season, transported halfway around world to reach the consumer (Schaadt, 2013), usually stacked in containers for weeks (Athukorala & Jayasuriya, 2003), increasing the risk of cross contaminations. ...
Despite the progress in the area of food safety, foodborne diseases still represent a massive challenge to the public health systems worldwide, mainly due to the substantial inefficiencies across the farm-to-fork continuum. Here, we report the development of a nano-carrier platform, for the targeted and precise delivery of antimicrobials for the inactivation of microorganisms on surfaces using Engineered Water Nanostructures (EWNS). An aqueous suspension of an active ingredient (AI) was used to synthesize iEWNS, with the ‘i’ denoting the AI used in their synthesis, using a combined electrospray and ionization process. The iEWNS possess unique, active-ingredient-dependent physicochemical properties: i) they are engineered to have a tunable size in the nanoscale; ii) they have excessive electric surface charge, and iii) they contain both the reactive oxygen species (ROS) formed due to the ionization of deionized (DI) water, and the AI used in their synthesis. Their charge can be used in combination with an electric field to target them onto a surface of interest. In this approach, a number of nature-inspired antimicrobials, such as H2O2, lysozyme, citric acid, and their combination, were used to synthesize a variety of iEWNS-based nano-sanitizers. It was demonstrated through foodborne-pathogen-inactivation experiments that due to the targeted and precise delivery, and synergistic effects of AI and ROS incorporated in the iEWNS structure, a pico-to nanogram-level dose of the AI delivered to the surface using this nano-carrier platform is capable of achieving 5-log reductions in minutes of exposure time. This aerosol-based, yet ‘dry’ intervention approach using iEWNS nano-carrier platform offers advantages over current ‘wet’ techniques that are prevalent commercially, which require grams of the AI to achieve similar inactivation, leading to increased chemical risks and chemical waste byproducts. Such a targeted nano-carrier approach has the potential to revolutionize the delivery of antimicrobials for sterilization in the food industry.
This chapter explains how growing consumer concerns about a variety of food safety issues and more strict regulatory requirements related to the supply of food products present persistent challenges for the continued access to the international markets of many developing country suppliers. Regulatory compliance helps industries meet customer requirements, gain new customers, and supply safe food to local and global markets. Food safety has taken center stage as the public is becoming aware of their health and the quality of the food they consume. Quality management systems are crucial in each sector of the food industry, to ensure safe, quality food for the consumer. Several risk-based food safety standards, such as GFSI, HACCP, SQF, BRC, and ISO/FSSC 22000, are created to prevent such issues from occurring. The chapter also presents how the food safety initiatives of governments, intergovernmental organizations, and other interested parties are affected by the actions of the international standards systems.
The paper presents findings derived from an extensive dataset encompassing a total of 76,435 instances, meticulously covering 621 disputes initi-ated by WTO members. The coverage spans from 1995 to 2023. The presented statistical data are cat-egorized into four distinct distributional units: The country unit, The agreement unit, the subject unit, and The time unit using descriptive data analy-sis technique. The study confirms that the USA and European Union are the predominant dispute initia-tors at the WTO. These disputes frequently cite the GATT 1994 agreement and often involve agricultural products. Notably, the research identifies a down-ward trend in the average annual number of dispute initiations over the examined period. Patterns and trends in WTO dispute initiations highlight shifts in the geopolitical landscape, changes in trade poli-cies, and emerging areas of contention and provide critical insights into the evolving dynamics of global trade relations and the strategic behaviour of member countries.
In recent decades, there has been a palpable shift in the commodity composition of world agri-food trade away from the traditional (unprocessed) primary products towards processed food. This structural change in trade patterns and its policy implications have so far received scant attention in policymaking in most agricultural resource-rich developing countries. This article aims to draw attention to this oversight by examining the experience of Sri Lanka against the backdrop of the experiences in agri-food trade of other countries in the Asian region. The analysis uses a new dataset that systematically delineates processed food from the traditional primary good products. The analytical narrative of an inter-country pattern of export performance shows that, unlike primary commodity dependence, exporting processed food is positively associated with the stage of economic advancement of countries. The econometric analysis suggests that export success is determined by a combination of growth of world demand, the domestic agricultural resource endowment and the conduciveness of the policy regime for global economic integration.
JEL Codes: F13, F63, N45, O13, Q17
The study analyzes the intellectual structure of World Trade Organization (WTO) research, employing a bibliometric approach. The bibliographic information of 7203 publications in the WTO field published in the Web of Science Core Collection indexed journals over 1995–2023 was analyzed. The results indicate that the research on WTO has grown faster than that of regional trade agreements and the overall international business field during recent decades. It may partially be due to an increase in the number of active proceedings in the WTO dispute settlement body. The European countries are the major contributors to WTO research. The USA is the most productive and influential country, with 2070 WTO-related publications and an h-index of 100. In addition, the authors affiliated with institutions located in the USA have established strong research collaborations with those from China, England, Switzerland, and Canada. However, the contribution from China has grown faster in recent years. Global politics and international trade law have become highly impactful themes. As for future research avenues, the focus of this research corpus has gradually shifted from the Doha development round to a review of the trade dispute settlement mechanism and amendments to WTO laws for ensuring transparency and environmental sustainability.
This study investigates the impact of technical non‐tariff measures (NTMs), specifically technical barriers to trade (TBT) and sanitary and phytosanitary (SPS), of Vietnam on agricultural imports and the role of deep trade agreements. This issue has been primarily focused on advanced countries but rarely studied for developing countries. The estimates indicate that the impacts of technical NTMs on imports from least developed countries (LDCs) and non‐LDCs are heterogeneous in terms of the measures' sophistication level. Simple technical NTMs, namely labelling, marking, and packaging requirements, increase agricultural imports from LDCs, while there is no significant impact on those from non‐LDCs. Other categories of TBT and SPS NTMs impede imports from LDCs, while benefiting imports from non‐LDCs. In addition, we found that deep trade agreements can ease the burdens of technical NTMs, but this is limited to imports from non‐LDCs. The findings of this study can help policymakers in better regulating agricultural imports to prevent harmful imports with minimal impacts on the benefits from trade.
Developing countries, trying to achieve an acceptable level of food safety at the least possible cost (efficiency objective) and facilitation of market access to the large and lucrative developed country food markets (market access objective), could follow the multilateral, regional, unilateral or the independent approach. The paper studying the pros and cons of these approaches aims to determine the most appropriate food safety reform package. It shows that the best approach is the unilateral. Under this approach the achievement of efficiency objective requires the adoption and implementation of the multilateral approach. The achievement of market access objective requires the adoption and implementation of the regulatory regime of the developed country whose markets the developing country is intending to penetrate. Instead, the paper proposes that the developing country adopts and implements the developed countries‘ regulatory regime only in agricultural sub-sectors with highest comparative advantage scores, and that in all other agricultural sub-sectors the country should adopt and implement the regulatory regime as developed by multilateral approach. Since the tasks associated with designing and implementing the food safety policy reform are challenging, the paper advocates that this task should be left to a new institution, the ‘Food Safety Council‘, which needs to be formed as an autonomous public institution with sufficient financial and technical resources.
The study investigates the impact of developing countries’ ability to comply with international food safety standards on processed food exports, based on the structural gravity modelling framework and a novel dataset from 2002 to 2018. The constructed variable on international food safety compliance is derived from import refusal records from the US Food and Drug Administration. The findings indicate that international food safety compliance is a significant factor in explaining inter-country differences in processed food export performance. The ability to meet international food safety standards matters for processed food exports from developing Asia to developing country markets and the USA, but it has a limited influence on Asian processed food exports to the European Union.
The nutritional structure of various categories of Russian citizens is characterized by insufficient consumption of especially biologically valuable food nutrients, such as vitamins, microelements, polyunsaturated fatty acids. Currently, more and more consumers are paying attention to the fullness of the diet with useful components, i.e. the problem of healthy nutrition of the population is becoming more and more important every year. Vegetable oils and products based on them hold a valuable place among the products related to healthy food. They have a significant calorie content (850-900 kcal per 100 g), but at the same time they differ from animal fats in the absence of cholesterol. They are suppliers of essential fatty acids, fat-soluble vitamins, phospholipids, sterols and tocopherols to the body. The unique properties and composition of linseed oil are noted. Fatty acid composition, organoleptic assessment and acid value index of seven samples of linseed oil from various Russian manufacturers were analyzed in order to determine their quality. Analysis of the fatty acid composition of the oil samples showed that 28% of the samples did not fall within the ranges stipulated by the regulatory documents for the content of linoleic and linolenic acids. Almost 60% of linseed oil samples had rather high scores (7.0-8.5 points) for taste and smell. Organoleptic characteristics associated with possible falsification by other types of vegetable oils were noted in 30% of the samples. Analysis of the acid value, as an indicator of oxidative deterioration of the product, showed that all samples of linseed oil had no signs of deep oxidative deterioration.
Purpose
Implementing food safety measures (FSMs) have become a prerequisite for food firms looking to export internationally. Many exporters find it difficult to comply with multiple regulations, and their consignments are often rejected at borders due to food safety concerns. Hence, harmonization in food safety standards is arguably the most contentious topic regarding the export market since it affects international trade. Accordingly, the paper uses the case of Indian seafood exporters to identify key FSMs, investigate stringency associated with them and rank international markets based on degree of stringency for selected FSMs.
Design/methodology/approach
First, the authors identify the key FSMs by using the Delphi method. Then, the authors apply the Fuzzy analytical hierarchical process (FAHP) method to calculate weights of the FSMs as criteria. Lastly, the authors apply the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) approach to rank markets. To compute fuzzy TOPSIS, weights are derived from fuzzy AHP.
Findings
This study’s findings suggest that product and process standards, traceability requirements and tolerance limits for residues are the most stringent FSMs, among others. Besides, the overall ranking of markets reveal that the European Union (EU), the USA and Japan ranked lowest and perceived to have the most stringent food safety requirements.
Originality/value
The paper offers guidance to firms and policymakers to manage their efforts and resources during food safety implementation by focussing on critical FSMs. Researchers will get insights about FSMs for further empirical investigation. To the authors’ knowledge, no study examined the stringency associated with various FSMs in the seafood industry.
The agri‐food trade has expanded considerably over decades, with a remarkable increase in the market share of developing countries. The upward trend in trade flows has been parallel to the proliferation of non‐tariff measures, particularly of sanitary and phytosanitary (SPS) measures in the agri‐food sector. SPS measures may have a dual impact on trade, i.e. standards as catalysts versus standards as barriers, and the net effect is likely to depend on the level of economic development of countries involved. We investigate whether the trade effects of SPS measures is correlated with the economic development of trading partners. In particular, we disentangle the trade effects of SPS measures implemented by developed and developing countries and look at differential impacts due to a mismatch in the economic development of trading partners. Using a structural gravity approach on bilateral trade and regulation data, we conclude that SPS measures are catalysts for developing importers, whereas no evidence is found for developed importers. We also find a pro‐trade effect of SPS measures when traders have different levels of economic development. Our findings have important policy implications: sharing SPS measures is strategic for economies characterised by different abilities to alter trade terms.
Food safety concerns have become increasingly important challenge for agricultural trade. Sanitary and phytosanitary (SPS) measures are often considered as major non-tariff trade barriers, which have surged rapidly over the recent decade. This study systematically investigates the impact of China’s SPS measures on Thai fruit exports. The panel dataset is constructed with 17 Thai fruit items for the sample period 2000–2018. Gravity equations are estimated to quantify the trade effects of SPS measures on the value of fruit exports from Thailand to China. The results from the sectoral analysis reveal that the restrictiveness of SPS measures has a positive and substantial effect on export volumes. This suggests that non-arbitrary and informative SPS requirements imposed by a large importing country would help facilitate the agricultural trade.
Non-tariff measures (NTMs) affect the labour market indirectly through trade. However, much ambiguity surrounds the labour market effects of NTMs, as conditions of the labour market are somewhat contextual. With a specific focus on the highly regulated food processing sector in Malaysia, this paper examines the impact of reductions in ad valorem equivalents of NTMs on employment and wages using a computable general equilibrium model. The simulations indicate positive gains to employment following reductions in NTMs in the short and long run. In the long run, employment gains and wage losses are observed for the unskilled group. The findings justify the need to complement the NTM reform with other mechanisms to address the likely rise in low-quality jobs in the food processing sector.
imited functional capacity and inadequate resources of government food control are common constraints in the export success of agricultural-resource-rich developing countries, thereby resulting to less competence in international food trade. The main sources of income for majority of the population depend on and directly relate with the success of primary food production and export. Thus, governments need to invest in food control system and other segments such as commodity standards formation, consistent quantity provision, and reliable inspection and laboratory services for trading system to be efficient. This paper presents SWOT factors identification of five key components of Myanmar food control system for tracing the process of food control works improved along with external pressures brought about by globalized food trade. Due to initial development stage of standardization activity, the technical regulation information gap between national standard body and trade promotion organizations in food trade was reported. The formation of National Quality Infrastructure has been in the process since 2012. Overall, there was a huge gap between food control governed by authority and food production industries. This paper stated nine strategies as recommendations. Law enforcement and the authorities’ role in controlling should have to be reexamined for health efficacy. With regard to consumer participation, active-surveillance information flow should been courage so as to crack down and prevent dishonest trading and counterfeit goods productions inside the community. Finally, there were many rooms left for development of the components of the food control system for health and trade efficacy.
Major markets for Bangladesh frozen shrimp are the European Union, the United States, and Japan. Bangladesh frozen shrimp imports into the EU and the United States have experienced safety and quality problems. The 1997 European Commission ban on Bangladesh seafood imports into the EU cost the Bangladesh frozen shrimp processing industry US$14.665 million in lost revenues.
Growing concern over health risks associated with food products is at the forefront of trade policy debate. At the heart of this debate is the"precautionary principle,"which holds that precautions should be taken against health, safety, and environmental risks even whenscience has not established direct cause-and-effect relationships--as with, for example, the EUropean ban on hormone-treated beef. The authors quantify the impact on food exports from African countries of new EUropean Union standards for aflatoxins, structurally related toxic compounds that contaminate certain foods and lead to the production of acute liver carcinogens in the human body. The authors estimate the impact of changes in differing levels of such protection based on the EU standards (and suggested by international standards) for 15 EUropean countries and 9 African countries between 1989 and 1998. The results suggest that implementation of the EU's new aflatoxin standards will significantly hurt African exports to EUrope of nuts, cereals, and dried fruits, which are highly sensitive to the aflatoxin standards. The EU standards would reduce health risks by only about 1.4 deaths per billion a year but would cut African exports by 64 percent, or $670 million, compared with their level under international standards.
One of the new WTO agreements that panels and the Appellate Body had to deal with in a number of recent disputes is the Agreement on Sanitary and Phytosanitary (SPS) Measures. This article focuses on the legal principles of the SPS Agreement as interpreted and established by Appellate Body and panel jurisprudence in the two most prominent cases under the SPS Agreement, the EC-Hormones case and the Australia-Salmon case, as well as the recently concluded Japan-Varietals case. Substantive rights and obligations such as scope of application, scientific evidence, risk assessment and the factors to be looked at in assessing risk, provisional measures, the acceptable level of risk for WTO Members, non-discrimination under Articles 2.3 and 5.5 SPS, and measures in the presence of international standards are examined. The above-mentioned cases also involved a number of procedural issues with particular relevance to disputes on SPS measures, such as the panel's terms of reference, the burden of proving whether a risk exists, the extent of a panel's investigation and the role of scientific experts. The status of implementation of reports is also briefly addressed. Copyright 1999 by Oxford University Press.
Fresh food products have a high income elasticity of demand and few traditional trade barriers in high income markets. As such, they represent an important opportunity for less developed country (LDC) exporters. Fresh food product exports account for half of all food and agricultural exports from LDCs to high income countries. But these products may be subject to greater food safety risks and potential trade barriers arising from sanitary regulation. This paper reviews the challenges and issues facing LDCs in meeting food safety standards for export. These issues include: (a) the importance of fresh food product trade by region and the kinds of issues that arise from those products; (b) the role of farm to table approaches and hazard analysis critical control points (HACCP) in ensuring safety; (c) the role of the public sector in LDCs in facilitating trade; (d) the potential role of the SPS Agreement in resolving disputes and determining equivalency of standards between high and low income countries.
Historically, the development of international production-sharing activities has been a major and evolving process. In one of its earliest forms, this process involved the production of primary commodities in developing countries, shipment of these goods to industrial nations for further processing, and then the re-exportation (in part) of the processed product back to the primary-commodity-producing country. As an example, iron ore might be mined in Mauritania, shipped to Europe for processing into iron and steel products-some of which were then re-exported to Mauritania. In part these ‘production-sharing’ trade flows were based on comparative advantage (some commodity processing, such as the fabrication of metals from ores or petroleum refining, is highly capital intensive), but other factors such as ‘escalation’ in industrial countries’ trade barriers also contributed to this exchange pattern.
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).
This study examines issues of trade policy in the light of the experience of developing Asian economies. Case studies highlight rapidly unfolding issues in trade and development with reference to Sri Lanka, Malaysia, India, Indonesia, Pakistan, South Korea, Taiwan and Thailand. The issues explored include trade liberalization and industrial adjustment, employment and equity outcomes of export-oriented industrialization, the impact of structural adjustment reforms on savings and investment and the role of foreign direct investment in export expansion.
This paper relates quality and uncertainty. The existence of goods of many grades poses interesting and important problems for the theory of markets. On the one hand, the interaction of quality differences and uncertainty may explain important institutions of the labor market. On the other hand, this paper presents a struggling attempt to give structure to the statement: “Business in under-developed countries is difficult”; in particular, a structure is given for determining the economic costs of dishonesty. Additional applications of the theory include comments on the structure of money markets, on the notion of “insurability,” on the liquidity of durables, and on brand-name goods.
At the Uruguay Round, developing countries took on obligations not only to reduce trade barriers but also to undertake significant reforms of regulations and trade procedures. The Round did not, however, take into account the cost of implementing these reforms - a full year's development budget for many of the least developed countries - nor did it ask whether the money might be more productive in other development uses. At the Uruguay Round, developing countries took on unprecedented obligations not only to reduce trade barriers but to implement significant reforms both of trade procedures (including import licensing procedures and customs valuation) and of many areas of regulation that establish the basic business environment in the domestic economy (including intellectual property law and technical, sanitary, and phytosanitary standards. This will cost substantial amounts of money. World Bank project experience in areas covered by the agreements suggests that an entire year's development budget is at stake in many of the least developed countries. Institutions in these areas are weak in developing countries, and would benefit from strengthening and reform. But Finger and Schuler's analysis indicates that the obligations reflect little awareness of development problems and little appreciation for the capacities of the least developed countries to carry out the functions that these reforms of regulations and trade procedures address. The content of these obligations can be characterized as the advanced countries saying to the others, Do it my way! Moreover, these developing countries had limited capacity to participate in the Uruguay Round negotiations, so the process has generated no sense of ownership of the reforms to which membership in the World Trade Organization obligates them. From their perspective, the implementation exercise has been imposed imperially, with little concern for what it will cost, how it will be carried out, or whether it will support their development efforts. This paper - a product of Trade, Development Research Group - is part of a larger effort in the group to support effective developing country participation in the WTO system. This research was supported by the global and regional trust fund component of the World Bank/Netherlands Partnership Program.
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.
The Political Economy of the World Trading System is a comprehensive textbook account of the economics, institutional mechanics and politics of the world trading system. This third edition has been expanded and updated to cover developments in the World Trade Organisation (WTO) since its formation, including the Doha Round, presenting the essentials of trade negotiations and the WTO's rules and disciplines. The authors focus in particular on the WTO's role as the primary organisation through which trading nations manage their commercial interactions and the focal point for cooperation on policy responses to the rapidly changing global trading environment. It is the forum in which many features of the globalisation process are considered, and it currently faces an unprecedented set of challenges. The increasing importance of countries in Asia, Latin America and Africa in international trade relations, the revealed preference towards regionalism, intensification of trade conflicts, the role of business groups and NGOs in trade policy formation and negotiations, and pressures for more leadership in an institution threatened by paralysis are examples of issues that are discussed in some detail; all are critical for the operation of the system and for international business in the coming decade. This edition also includes numerous real-world examples to illustrate how the WTO impinges on business, workers and households, written from the perspective of managers and business associations. An insider's view of the institutional history of the WTO allows the authors to use a variety of conceptual tools to analyse the working of the WTO in a non-technical manner. Suggestions for Further Reading at the end of each chapter and an extensive bibliography make the volume suitable both for introductory and postgraduate courses on international economics and business, international relations, and international economic law.
Trade protection costs the European Community between 6 and 7 percent of its gross domestic product, or the equivalent of the annual economic output of Spain. Continuing the Institute's series on trade protection in major countries (which already includes the United States, Japan, Korea, and China), this study by Patrick A. Messerlin is the first attempt to measure the impact of all types of protection in the European Union.Messerlin uses partial equilibrium methods to assess the costs to consumers and to evaluate the political economy of European protection. He also examines in detail the intricate relations between the major EC domestic policies--from the Common Agricultural Policy to the Single Market in services--and EC commercial policy. He aims to assess their dynamic evolution for the decade to come, which will be marked by the first accessions of Central European countries to the EC and by the debate on the European political union. The study provides a valuable agenda for the upcoming round of WTO negotiations and underlines their role as a support for domestic reforms that the EC should undertake for its own benefit.
Food safety is of increasing importance in higher-income countries where consumers demand higher quality and safer food. They will do so through the market when information makes it possible. They will demand better assurances of safety through government regulations where externalities and health risks prevail. The microeconomics of this demand for increased food safety is discussed in terms of how it can lead to non-tariff barriers to trade that might ultimately be regulated by the GATT. The public goods nature of food safety is explored along a continuum of food quality characteristics for the purpose of identifying when government regulations are needed.
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.
A noteworthy recent development in world trade is the rapid expansion of processed food exports. This development and its policy implications have received little attention in the literature on export-led industrialisation in developing countries (DCs). The purpose of this paper is to redress this oversight, firstly by providing an overview of the growth patterns of processed food exports and then examining the determinants of inter-country differences in growth performance. The results point to the growing importance of food manufacturing as a dynamic export line for many DCs. There is also evidence that the policy regime is far more important than resource endowments and other country-specific factors in explaining inter-country differences in export success in this product area, as in the case of conventional manufactured exports.
This survey at shed light on the potential contribution of industrialization based on resource processing to efficient growth, employment creation, greater equity and economic independence. The use of capital-intensive methods to reduce raw material costs appears to confer comparative advantage on countries with cheap capital. Lower transport costs due to substantial weight reduction in processing may counter this advantage for some stages of processing, but does not universally favor LDC exporters. Most major producers export sufficient quantities to achieve scale economies typical of resource processing, but economies of scale are a barrier in processing for the domestic market in all except the largest LDCs. External economies of industrialization are also thought to favor processing in the industrial countries, but potential linkages could stimulate some complementary investments in LDCs. Because resource-based industries are not impressive contributors to direct or indirect employment creation, they are likely to perpetuate the pattern of dualism and inequality present in typical resource-rich countries.Third-world exporters may be barred from entry into resource processing by the dominance of multinational firms in the metals and petroleum industries; by shipping conference freight rates that discriminate against processed commodities; and by importing country tariff structures that provide substantial effective protection against many LDC semi-processed exports. Processing of natural resources for export tends to continue the broad pattern of trade, financial and technical dependence of developing countries, although market dependence may decrease at some stage of processing. Home-oriented processing avoids market dependence, but cannot escape outside dependency on technology, management and finance.
The central theme of this article is the necessity for deference to decision-making processes of national regulatory authorities in the application of these new trade disciplines and the need for trade-based reviews of national regulatory measures to operate within clearly defined limits. Accordingly, this article first examines and summarizes the relevant texts, including the original 1947 GATT, the Uruguay Round, and the NAFTA texts on standards. Next, the article considers the role of science in the standard-setting process with reference to the copious literature on this topic. Finally, the article takes up the difficult question of the application of the science-based trade disciplines in the Uruguay Round and NAFTA texts in the context of the quasi-adjudicatory trade agreement dispute settlement process.
The sharing of different stages of manufacturing processes between countries is of major and growing importance. However, due to previous deficiencies in the Standard International Trade Classification (SITC) Revision 1 system it was not possible to differentiate between two key elements of this process- that involving international trade in components and parts as opposed to the exchange of fully fabricated manufactured goods. Such a distinction was needed in order to empirically estimate the size of global production sharing. Changes in the SITC classification system (Revision 2) now allow one to approximate how much production sharing occurs within the key machinery and transportation equipment (SITC 7) group which includes approximately 50 percent of world trade in all manufactures. In 1995, OECD exports of parts and components in this group totalled 100 billion of these products- which indicates global exports were in excess of one-half trillion dollars. However, the extent of product sharing is clearly larger than
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.
This research report, the first comprehensive analysis of the world trade in horticultural products, includes their composition, market structure, past trends, and the role of price and nonprice factors, as well as an examination of the differential performances of developing countries and regions. The study provides guidance on both domestic and international policy measures crucial for the realization of this dynamic sector. On the domestic front, developing countries need to strengthen their competitive position by intensifying research and development efforts on cost-reducing innovations in production, by expanding their domestic markets to realize economies of scale, and by developing efficient systems of packaging, processing, storage, transportation, and distribution. Future export prospects also largely depend on the liberalization of trade restrictions in the developed countries. About 150 products are covered over a period of 25 yr. -from Author
This working paper deals with the question how international trade can lead to economic growth. Since only technical progress can lead to sustained economic growth international trade has to accelerate the rate of technical progress to promote economic growth. Technical progress is mainly generated by the production and the use of ideas. It can be shown that international trade fosters the production of ideas in industrialised countries and that it enables the use of ideas in developing countries. Therefore international trade can promote growth at least in the short run. This is demonstrated via theoretical models and empirical evidence as well as a separate empirical analysis concerning the variety of imported capital goods.
Unilateral removal of trade restrictions is good economics, but it is often bad domestic politics. GATT negotiations for 50 years provided a mechanism to overcome this political incorrectness. The Uruguay Round carried multilateral negotiations into many 'new areas' with more complex economics - areas of regulation that establish the basic business environment in the domestic economy, e.g., technical, sanitary and phytosanitary standards; intellectual property law. Doing these things is costly and you can get it wrong - the economic correctness is not so simple as the economic correctness of removing trade restrictions. Making economic sense in these areas requires cost-benefit analysis, experimentation, projects tailored to specific problems. Some developing countries would benefit from reforms in the new areas, but the Uruguay Round requirements do not identify the problems that exist in developing countries and they consequently demand establishment of institutions and regulations that will impose higher costs than benefits on the countries that implement them. Implementation issues are development issues, not trade issues. The procedures of the World Bank are suited to taking on such matters, those of the WTO are not. Copyright Blackwell Publishers Ltd 2001.
Nations are becoming increasingly dependent upon internationally traded food products, often at the expense of traditional agricultural commodities. As the focus shifts to high value-added imports and exports, regulations targeting the food safety attributes of these products are increasingly cited as a source of potential non-tariff barriers to trade. To counter such concerns, various bilateral and multilateral efforts to demonstrate the integrity of the regulatory systems under which these foods are produced are taking centre stage. Little analysis of the relative efficacy of such rapprochement efforts exists. This paper therefore discusses the impacts food safety regulation can have on the growth in food trade by presenting a review of key regulatory rapprochement efforts targeting them. The GATT SPS Agreement in particular is discussed. Recent disputes centring on the impacts of food safety regulations are also reviewed to suggest how GATT commitments are being interpreted and enforced. This discussion highlights potential road-blocs to additional trade facilitation and evaluates if a ‘hard law’ system now exists.
The incentive for governments to negotiate and abide by international trade agreements depends in part on the effectiveness of enforcement provisions. Enforcement is particularly important for developing countries, which will rarely be able to exert credible threats against large trading entities that do not abide by the negotiated rules of the game. In this paper we have discussed some of the systemic aspects of the enforcement problem. Since the WTO rests on decentralised enforcement of international obligations (the ultimate remedy being an authorisation to adopt bilateral countermeasures), it inherits all of the asymmetries that arise when there are substantial differences in bargaining power. Standard solutions suggested in the economic literature to address this problem include multilateralisation of sanctions and the adoption of remedies that deter transgressions (e.g., compensation). Moving in this direction would benefit developing countries, who are mostly 'small' in terms of the leverage they can exert. However, moves towards multilateral enforcement or compensation are unlikely to prove politically feasible. Progress may be easier in the two other areas discussed in this paper: enhancing transparency and information, and adopting more efficient and effective DSP procedures. A combination of efforts that focus on these two dimensions of enforcement could significantly improve the incentives for developing countries to participate in WTO DSP and increase their sense of 'ownership' of the institution.
At the Uruguay Round, developing countries took on obligations not only to reduce trade barriers but also to undertake significant reforms of regulations and trade procedures. The Round did not, however, take into account the cost of implementing these reforms - a full year's development budget for many of the least developed countries - nor did it ask whether the money might be more productive in other development uses. At the Uruguay Round, developing countries took on unprecedented obligations not only to reduce trade barriers but to implement significant reforms both of trade procedures (including import licensing procedures and customs valuation) and of many areas of regulation that establish the basic business environment in the domestic economy (including intellectual property law and technical, sanitary, and phytosanitary standards. This will cost substantial amounts of money. World Bank project experience in areas covered by the agreements suggests that an entire year's development budget is at stake in many of the least developed countries. Institutions in these areas are weak in developing countries, and would benefit from strengthening and reform. But Finger and Schuler's analysis indicates that the obligations reflect little awareness of development problems and little appreciation for the capacities of the least developed countries to carry out the functions that these reforms of regulations and trade procedures address. The content of these obligations can be characterized as the advanced countries saying to the others, Do it my way! Moreover, these developing countries had limited capacity to participate in the Uruguay Round negotiations, so the process has generated no sense of ownership of the reforms to which membership in the World Trade Organization obligates them. From their perspective, the implementation exercise has been imposed imperially, with little concern for what it will cost, how it will be carried out, or whether it will support their development efforts. This paper - a product of Trade, Development Research Group - is part of a larger effort in the group to support effective developing country participation in the WTO system. This research was supported by the global and regional trust fund component of the World Bank/Netherlands Partnership Program.
This paper analyses participation of developing countries at the WTO as of mid-1997. The focus is on three main issues: (a) Representation, as reflected in the existence or not of a mission of adequate size dealing with WTO matters located in Geneva; (b) participation in the affairs of the new Organisation, as reflected in the allocation of formal chairmanships in the various WTO councils and subsidiary bodies, in the informal processes that characterise WTO governance and decision-making, as well as in their involvement in the new Dispute Settlement Mechanism (DSM); and (c) institutional capacity in home capitals, which is necessary for both effective representation and participation. Based on this analysis, the last part of the paper draws a number of conclusions and recommendations for the more effective participation of developing countries in the WTO.
*Massachusetts Institute of Technology, Cambridge, U. S. A., Emeritus and Institute of International Economic Studies, Stockholm, Sweden. - This paper brings together, extends and generalizes a number of previous observations on the subject [Kindleberger, 1964, pp. 149–152, 1978a, pp. 137, 228 ff., 1978b, pp. 6–7, 1982, pp. 203–216]. The analysis, and illustrations accordingly are to a considerable extent repetitious.
Despite recurring rounds of trade liberalization under GATT WTO auspices, complemented by unilateral reforms, many developing countries have not been able to integrate into the world economy. This paper argues that, from the perspective of the poorest countries, a multi-pronged strategy is required to strengthen the global trading system and that much of the agenda must be addressed outside the WTO. The most important contribution the WTO can make from a development perspective is to improve market access conditions for goods and services and ensure that trade rules are useful to developing countries. Enhancing trade capacity requires concerted action outside the WTO ( aid for trade ) as well as unilateral actions by both industrialized and developing countries to reduce anti-trade biases.
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