Standards and Regulatory Capitalism: The Diffusion of Food Safety Standards in Developing Countries

Author(s):  
Diahanna L. Post
2008 ◽  
Vol 43 (3) ◽  
pp. 3-20 ◽  
Author(s):  
Khushdeep Dharni ◽  
Sonika Sharma

With incidence of food-borne diseases, consumers have become more conscious of food safety. Share of high value food items in the export bounty from developing countries like India is on the rise. These high value food items such as fresh & processed fruits and vegetables, marine products, meat and its preparations are highly income elastic as well as sensitive from the viewpoint of food safety. Article 20 of GATT allows governments to act on trade in order to protect human, animal or plant life or health, provided they do not discriminate or use this as disguised protectionism. SPS Agreement sets out the basic rules concerning food safety and animal & plant health standards. It allows countries to set their own standards but also says that regulations must be based on science. With increased retail concentration ratio, large retailers in the developed countries are enforcing their own food safety standards and these standards are stringent as compared to standards of standard setting bodies of WTO. At times these standards are used for discrimination in international trade and are telling upon the exports from developing countries in terms of additional costs of compliance and lack of “harmonization” and difficulties in establishing “equivalence”. For the benefit of exporters from the developing countries and consumers of the developed countries, efforts must be made for encouraging harmonization in these private standards and reducing the resulting discrimination.


Author(s):  
Masoud Ali Khalid ◽  
Narmen Ghafor

Non-tariff measures such as food safety and technical standards are used to achieve the non-trade objective of protecting consumers’ health and safety. On the other hand, they can also be deployed as a trade secure tool to drive a price wedge between foreign and domestic producers. This study investigates the protectionist tools of 34 developing countries food safety standards using a sample of developing countries food imported from developed and other developing countries with a specific focus on vegetables, Trunks, machinery, and tobacco. We employ theoretical framework of gravity equation by applying SGMM estimation. Our results indicate that vegetable and machinery variables are negative and statistically significant. Meaning that both variables have a negative impact on GDP, in other words, both variables are not support GDP and economic growth in the developing countries. Finally, Trunk variable is positive and statistically significant. It shows that, this variable leads to promote economic growth in the developing countries. While Tobacco is positive and statistically insignificant, meaning that this product is not play an important role in the trade sector in our sample countries.


2018 ◽  
Vol 8 (1) ◽  
pp. 1-21 ◽  
Author(s):  
Prince Baah Annor

Subject area Agricultural Trade, Farm Management, Economics of Food Safety Study level/applicability Both undergraduate and postgraduate studies in Agribusiness and Agricultural Economics. Case overview The pineapple production sector plays a very significant role in the Ghanaian horticultural industry. Production and export of fresh pineapple has been Ghana’s most developed high-value supply chain. However, the introduction of the GlobalGAP food safety standard in 2007 resulted in a fall in smallholder farmers’ participation in exportable pineapple production and subsequently led to declining trends in pineapple exports. The Ghanaian horticultural industry received quite a number of interventions over the years aimed at revitalizing the horticultural export sector and enhancing international competitiveness. However, the pineapple export sub-sector is still constrained with production and market access challenges meaning the sector struggles to survive. Expected learning outcomes The GlobalGAP standard compliance case is an appropriate way of explaining how smallholder farmers make informed decisions concerning the adoption of new farm practices. The case presents a careful evaluation of technical, institutional and socio-economic factors influencing a farmer’s decision to comply or not to comply with the GlobalGAP standard. Students should be able to apply farm management decision-making concepts and tools such as profit maximization and binary choice modelling techniques to explain a farmers’ final decisions on GlobalGAP standard compliance. This case should enable students to appreciate key factors constraining agricultural export trade performance in developing countries. The case should also contribute to students’ understanding of smallholder farmers’ decisions on food safety standards compliance, particularly GlobalGAP, and the challenges associated with the entire compliance process. Moreover, this case should provide students with possible policy considerations geared towards making food safety standards compliance easier, effective and sustainable in developing countries so as to enhance market access while ensuring food quality and safety along high-value food supply chains. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 7 Management Science


2014 ◽  
Vol 6 (1) ◽  
pp. 21-37 ◽  
Author(s):  
Dingqiang Sun ◽  
Jikun Huang ◽  
Jun Yang

Purpose – The purpose of this paper is to empirically examine how China's food safety standards affect agricultural trade in the case of dairy products. Design/methodology/approach – A gravity model is applied to quantitatively address the impacts of changing food safety standards in China in the case of its dairy imports. The paper considers the trade impacts of not only a specific hazard substance but also overall strictness of safety standards. Findings – The paper shows that changes in food safety standards of dairy products have no effect on China's dairy imports. The finding is not particularly surprising considering special characteristics of China's food safety standards. Given the fact that China's safety standards are relatively lower than that in its major exporters, the trade-impeding effect may not be substantial. Research limitations/implications – First, this study is unable to estimate the trade-enhancing and trade-impending effects separately. Second, the study does not account for a potential endogeneity issue associated with food safety standards. Originality/value – This paper contributes to the debate on how food safety standards affect trade by demonstrating that safety standards in developing countries like China can affect international trade differently from that in developed countries. Although results are specific to China's dairy imports, the explanations are applicable to food safety standards in other developing countries.


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