Food Safety Standards, Trade & WTO

Abstract

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.