Food Safety and Trade

Food Safety and Trade: Winners and Losers in a Non-Harmonized World

Food safety and the trade-off between precaution and increased agricultural exports are at the forefront of policy debate. Moreover, how international standards are set for food safety, can have a profound effect on export prospects for the least developed countries. This study examines the impact of adopting international food safety standards and harmonization of standards on global food trade patterns. The paper estimates the effect of aflatoxin standards in 15 importing (4 developing) countries on exports from 31 (21 developing ) countries. We estimate that world exports would rise by $38.8 billion if an international standard (Codex) were adopted, compared to the current divergent national standards in place.