Sanitary and phytosanitary regulations and international red meat trade

Xia Shang,Glynn T Tonsor

doi:10.1108/bfj-10-2018-0663

Xia Shang, Glynn T Tonsor

Open Access

https://doi.org/10.1108/bfj-10-2018-0663

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Abstract

Purpose The purpose of this paper is to provide an ex post econometric examination of SPS measures and their influences on red meat trade. Design/methodology/approach The authors conduct multiple new assessments to further assess the particular effects of specific SPS measures related to animal health, human health and maximum residue limits on red meat trade values. This finer assessment provides updated and more detailed insights into the marginal trade impacts of different SPS measures. Findings The current study sheds important light on the determinants of red meat trade. The economic conditions of destination countries and production capability of suppliers are key to determining trade values. Factors including personal income and exporters’ meat supply are identified as trade facilitators. Since the restrictiveness of SPS measures vary across beef and pork sectors, maintaining commodity-specific SPS measures is essential for accurate assessment of trade determinants. Originality/value This paper provides multiple contributions to the existing literature and more broadly the authors’ economic understanding on the increasingly contentious issue of global meat trade. Combined, this study yields several implications for food policy, trade negotiators and industry leaders given the growing role and surrounding controversies of trade in meat and livestock markets around the world. The authors further believe the paper would be of notable interest to fellow researchers consistent with the existence of a sizable published literature and ongoing debates in international meat trade.

Highlights

Global red meat consumption has been gradually increasing for decades, driven by rising incomes and populations as well as productivity growth of meat production ( Jones et al, 2013)
Results and further discussions This section reports the results of the estimated gravity models for beef and pork under different sanitary and phytosanitary (SPS) quantification scenarios and trade data formats with the frequency method
Using a series of product-level gravity models, this study analyzes the trade effects of diverse SPS measures that are imposed in the meat industry to further discover the determinants of global red meat trade

Summary

Introduction

Global red meat consumption has been gradually increasing for decades, driven by rising incomes and populations as well as productivity growth of meat production ( Jones et al, 2013). Emerging markets have growing demand and purchasing power in the global red meat (beef and pork) market. Such escalated demands in international red meat and livestock markets provide meat exporters with substantial opportunities to expand the livestock and meat production. Food safety issues have increased both consumer and producer awareness of external effects associated with trade in agricultural products (Schlueter et al, 2009). Various sanitary and phytosanitary (SPS) measures have been widely applied by members of the World Trade Organization (WTO) with the stated purpose to ensure food safety. SPS barriers to trade are growing and become contentious because the barriers have been used to protect favored producers from competition

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Results

Conclusion