Product standards and developing country agricultural exports: The case of the European Union

This paper shows that voluntary product standards in EU food and agriculture markets can have significant trade effects. In particular for all countries and for goods that are raw or lightly processed, EU standards can often be trade-inhibiting. However, internationally harmonized EU standards—those that are equivalent to ISO norms—have much weaker trade effects, and in some cases are even trade-promoting. EU standards may have hurt developed countries more than developing countries, but this result is dependent on the sector. At a policy level, the results highlight the importance of dealing with the trade effects of voluntary standards in major markets, not just mandatory public standards.     

The impact of the European Novel Food Regulation on trade and food innovation based on traditional plant foods from developing countries

The stringent food safety assessment for novel foods required by the European Union’s Novel Food Regulation (NFR) places a high burden of proof on those bringing traditional food products to the EU market not consumed in the EU prior 1997. The regulation has emerged as a non-tariff trade barrier for heritage foods from developing countries that are viewed as “exotic” from the EU perspective. We show how the regulation has discouraged investment in supply chains and market development, and how this negatively affects income generation and rural poverty alleviation in developing countries. Focusing on plant-derived foods, this paper proposes to recognize traditional exotic foods in current EU law as a food category sui generis with food safety evidence requirements being proportionate to the risks they may pose. We argue that development activities promoting export food chains must increasingly accommodate legitimate food safety concerns about neglected food species in project design and seek to generate data to enhance regulatory acceptance in target markets.     

Water scarcity and food trade in the Southern and Eastern Mediterranean countries

This study investigates food trade patterns in relation to water resources availability in the Southern and Eastern Mediterranean countries (SEMED). Examinations show that most of these countries have a high dependence on the import of water intensive crops – cereal, vegetable oil and sugar, in the domestic food supply. The region as a whole is marginally a net exporter of fruits and vegetables, while variations are substantial across countries. Multi-variable regression analyses show that intensification of water scarcity is an important factor in explaining the increase in food import in the SEMED countries during the past two decades. It also finds that while GDP per capita has a strong influence on the level of food import in a country, its impact on changes in the import during the same period is rather modest. No significant relationship is found between the trade of fruits and vegetables and water resources availability. The projection on food import with respect to the decline in per capita water resources availability results in an increase of 40%, 39% and 14%, respectively, for cereal, vegetable oil and sugar by 2020 in the region, holding other factors constant. The European Union (EU) is the major food trade partner of the SEMED countries, except for cereal. About 70% of the fruit export and 55% of the vegetable export of the region currently go to the EU market. Expanding the export of fruits and vegetables is conducive to improving the value of water use in the SEMED countries. However, the expansion is constrained partly by the barriers in the destination markets, notably the EU.     

On the asynchronous approvals of GM crops: Potential market impacts of a trade disruption of EU soy imports

Due to their high protein content, soybeans are important feedstuffs in the European Union (EU). However, the cultivation of soybeans using genetically modified (GM) varieties in non-EU countries is increasing and the EU authorization of GM products takes longer than in other countries, leading to an asynchronous approval between the EU and non-EU countries that might induce soybean trade disruptions. This paper uses an integrated modelling system to simulate Argentina, Brazil and the United States ending soybean exports to the EU. The impact on world trade and on the EU import prices of soy products is analysed with a computable general equilibrium model. EU soy imports are shown to decline, and the import price of soybeans in the EU increases. The effects on EU agricultural markets are analysed based on a partial equilibrium model. Feed costs in the EU are found to increase with poultry and pork the most affected: production and exports decline and imports increase. However, the effects of a trade ban are found to be less profound than in many other studies due to compensating substitution effects at various market levels: increasing imports from third countries, increasing domestic oilseed production and the use of other protein feeds.     

Trade and dietary diversity in Eastern Europe and Central Asia

In public and academic debates, the linkages between agricultural markets and nutrition across the world are vividly discussed. This paper contributes to the ongoing debate by analyzing the relationship between greater openness to trade and dietary diversity. It focuses on the post-communist countries of Eastern Europe and Central Asia where trade reforms triggered growth in trade flows and foreign direct investment, which in turn affected food systems in these countries. This shift provides a natural experiment for studying the effects of trade openness on agricultural markets and consumer behaviour. Reduction in trade barriers, for instance in the context of the accession to the WTO and the EU, and the gradual integration with world markets after 1991 had implications for diets through changes in production, prices and incomes. We utilize country-level panel data for 26 post-communist countries in the period 1996–2013 to assess the effects of trade costs, agricultural trade openness and incomes on dietary diversity measured by the Shannon entropy index. The results from fixed effects and instrumental variables estimation are consistent with previous findings that income growth affects dietary diversity positively. They also provide novel evidence that trade barriers reduce variety of products available in domestic markets, in particular fruits and vegetables.     

Assessing the relevance of EU SPS measures to the food export sector: Evidence from a developing agro-food exporting country

This study was undertaken to assess whether SPS measures prevailing in the European Union (EU) have had an effect on the export of fishery and horticultural products from Mauritius. Specific objectives were to assess and compare the importance of EU SPS measures as an export determinant for Mauritian fishery and horticultural products exports, to determine whether these measures have acted as a barrier to trade and lastly to describe the compliance strategy adopted by exporters using firm-level surveys and in-depth interviews with key informants. The results suggest that, most respondents considered that public and private SPS requirements were not an important export determinant in agro-food trade with the EU and were not acting as barriers to exports. The compliance strategy used by the majority of exporters was mainly reactive.     

Saving two in a billion:: quantifying the trade effect of European food safety standards on African exports

A growing concern over health risks associated with food products has prompted close examination of sanitary and phytosanitary standards in industrialized countries. This paper quantifies the impact of a new harmonized aflatoxin standard set by the EU on food exports from Africa. We employ a gravity model to estimate the impact of changes in differing levels of protection based on the EU standard, in contrast to those suggested by international standards. The analysis is based on trade and regulatory survey data for 15 European countries and nine African countries between 1989 and 1998. Our results suggest that the implementation of the new aflatoxin standard in the EU will have a negative impact on African exports of cereals, dried fruits and nuts to Europe. The new EU standard, which would reduce health risk by approximately 1.4 deaths per billion a year, will decrease these African exports by 64% or US$ 670 million, in contrast to regulation set through an international standard.     

Cooperation in the agro-food industry: Spain,Greece and Portugal

This article is concerned with some characteristics of the agro-food industry in Spain, Greece and Portugal, countries that will soon enter the European Community. The analysis is based on an examination of the ways in which the agro-industry and food consumption patterns influence the economic development of those countries. The article also considers the problems of agreements between the food industry and the agricultural sector and the role played by public administration.     

National food safety control systems in Sub-Saharan Africa: Does Uganda’s aquaculture control system meet international requirements

Stringent food safety requirements set by developed country markets, which require exporting countries to establish effective national food control systems (NFCS) that guarantee safety of the products to the market, pose a challenge to Sub-Saharan countries in development of aquaculture products as alternative exports following the decline of capture fisheries. In the study, four components of Uganda’s NFCS including legislation, competent authority, inspection services, and laboratory services were evaluated for compliance with FAO/WHO, European Union (EU), and the United States (US) market recommendations for guaranteeing aquaculture product safety. Using a checklist, component elements were benchmarked and scored, and components ranked for compliance with the recommendations. On a scale of 0–5, where 0 denotes none, 1 very low, 2 low, 3 some, 4 almost total, and 5 full compliance, only laboratory services had a barely acceptable score of 3.3 (some compliance). The rest including legislation which is central in setting the level of controls by the other three components scored below three, and the combined score for all components was only 2.2, indicating that Uganda’s NFCS was still short of the requirements to allow entrepreneurs to access markets in the EU and other developed countries. The low score is partly attributed to the dynamics of this country’s fledgling aquaculture industry and the rapidly evolving food safety requirements in the international markets.     

The development of private fresh produce safety standards: implications for developing Mediterranean exporting countries

Integration into global markets offers the potential for more rapid growth and poverty reduction for poorer countries. However, market barriers within advanced economies to agricultural imports have made it harder for developing countries to take full advantage of this opportunity. This article examines the impact of increasing demands for food safety and quality by European food retailers, and how the fundamental structure and culture of supplier organisations required by European retail chains are a major entry barrier for developing Mediterranean fresh produce exporting countries, and for developing countries in general. The long-term solution for such countries to sustain an international demand for their products lies in structural, strategic and procedural initiatives that build up the trust and confidence of importers/retailers in the quality and safety assurance mechanisms for their produce.     

Food self-sufficiency: Making sense of it,and when it makes sense

Food self-sufficiency gained increased attention in a number of countries in the wake of the 2007–08 international food crisis, as countries sought to buffer themselves from volatility on world food markets. Food self-sufficiency is often presented in policy circles as the direct opposite of international trade in food, and is widely critiqued by economists as a misguided approach to food security that places political priorities ahead of economic efficiency. This paper takes a closer look at the concept of food self-sufficiency and makes the case that policy choice on this issue is far from a straightforward binary choice between the extremes of relying solely on homegrown food and a fully open trade policy for foodstuffs. It shows that in practice, food self-sufficiency is defined and measured in a number of different ways, and argues that a broader understanding of the concept opens up space for considering food self-sufficiency policy in relative terms, rather than as an either/or policy choice. Conceptualizing food self-sufficiency along a continuum may help to move the debate in a more productive direction, allowing for greater consideration of instances when the pursuit of policies to increase domestic food production may make sense both politically and economically.     

A ‘Common Food Policy’ for Europe: How governance reforms can spark a shift to healthy diets and sustainable food systems

More than half of adults in the European Union (EU) are now either overweight or obese (53%). Non-communicable diseases (NCDs), many of which are diet-related, account for 70% of mortality in Europe and a growing share of healthcare costs. While eating habits have an important role to play in NCD prevention, consumption patterns across the EU are diverging significantly from recommended diets. There is growing consensus on the solution: a series of coordinated and wide-ranging policy interventions to build healthy ‘food environments’.This article argues that EU governance structures remain ill-adapted to the systemic nature of this and other challenges in food systems (e.g. climate change, biodiversity loss, food poverty): conflicting objectives and missed synergies are identified between different policy areas (agriculture, trade, health, environment, etc.) and between different levels of governance (EU, national, local). An integrated food policy framework – a ‘Common Food Policy’ – is therefore required to meet the EU’s public health and sustainability objectives. It identifies four distinct aspects of the governance shift required to promote healthy diets and build sustainable food systems in Europe: (i) coherence across policy areas; (ii) coherence across governance levels; (iii) governance for transition; and (iv) food democracy. Blueprints for a Common Food Policy are already emerging, and are ripe for consideration, development, and implementation by the European institutions.     

A quantitative analysis of trade policy responses to higher world agricultural commodity prices

The worldwide spike in prices of agricultural commodities in 2007–2008 elevated food security and social stability issues to the forefront, especially in many food-deficit countries. In order to mitigate the global food commodity price pressure on domestic markets, several major exporting and importing countries, mostly developing economies, adopted trade policy changes such as export bans (or raising export restrictions) or reducing import tariffs during the same period. This paper estimates the potential impacts of these policies on the world prices and trade of major agricultural commodities using a set of multi-country, multi-commodity, and partial-equilibrium models. Our findings suggest that over all, the trade policy responses in various countries increased the prices of all agricultural commodities, although the impact on the total net trade varies by commodity. The simulation results show that the overall impact of trade policy distortions on the world rice price is most significant at 24%, followed by wheat (14%) and barley (9%). In general, the poorer food-deficit countries/regions, which have limited power to manipulate their trade policies, experienced higher price increases compared to those major trading countries that adopted policy interventions. Also, the developing countries that are net importers which did not implement trade policy interventions experienced significant welfare losses resulting from interventions implemented by other major trading countries.     

垂直合约与产业环境贸易政策——环境成本内部化及中国的策略选择

全球经济一体化背景下,发达国家利用环境贸易政策来实现竞争优势已经出现趋势。本文介绍了欧盟的环境贸易政策,基于环境贸易政策的背景,预设国内外上、下游企业之间已经构成一个产业链,应用Stephen F.Hamilton的垂直型结构模型,将数量竞争分为四种不同情况,给出了最大均衡供给量。分析表明,如果采用垂直合约,则数量竞争和价格竞争的最佳非合作环境政策均是庇古(Pigouvian)税。在国内下游出口商与上游进口品供应商能够达成合约的条件下,政府之间存在着非合作环境政策。因此,我国的产业环境贸易政策应当是努力实现环境成本的内部化。     

The involvement of utilities in the development of broadband infrastructure: A comparison of EU case studies

Energy companies and other utility providers have been often involved in the provision of telecommunications services. Nevertheless, their contribution to broadband development has varied significantly over time. In the late 1990s, both local and national utilities in the European Union (EU) engaged in the provision of broadband networks, but only few of them managed to establish themselves as major broadband providers. More recently, new projects involving national utilities have been announced in several EU countries, opening new scenarios for utilities’ contribution to Next Generation Access (NGA) development. This paper identifies and explores the factors affecting the entry and the success of utilities in the EU broadband market, through the comparison of four case studies from four EU countries (Germany, Italy, Sweden and the UK). The evolution of utility involvement in the EU broadband markets is assessed against the interaction of market, technology and policy factors, focusing on the impact of policy and regulatory measures. As a result, this paper provides fruitful insights into the relevance and effectiveness of public interventions in broadband markets. Across the four case studies, public support and public ownership emerged as the main drivers for the involvement of utilities in EU broadband markets, with regulatory measures and economies of scope exerting a limited and decreasing influence. However, the contribution of utilities has varied significantly across the cases studied, reflecting the different approaches taken at national and local level to support broadband development, in spite of the common regulatory framework.     

Domestic Market Structure and Performance in Global Markets: Theory and Empirical Evidence from U.S. Food Manufacturing Industries

This paper formally articulates Porter's hypothesis that the degree of competition in domestic markets is positively linked to performance in international markets. Hypotheses are tested using measures of the trade performance of U.S. food manufacturing industries as proxies for international competitiveness. Empirical results are generally consistent with Porter's hypothesis; net export share is negatively related to industry concentration. The competitiveness of agricultural inputs, R & D intensity, and trade barriers of other countries were also found to be important determinants of the performance of these industries in global markets.     

The Impact of Acquiring EU Status on the Earnings of East European Migrants in the UK: Evidence from a Quasi‐Natural Experiment

On 1 May 2004, 10 new states — including the ‘A8’ countries in Central and Eastern Europe — joined the European Union (EU). This article explores the impact of EU enlargement on A8 workers who were already working in the UK before 1 May 2004 — legally or illegally. More specifically, the article analyses the impact of the change in the legal (immigration) status that A8 workers experienced on 1 May 2004 on their earnings in the UK. The empirical analysis employs difference‐in‐difference estimation using data obtained from a relatively small but unique survey of migrant workers from four of the A8 countries (Poland, Czech Republic, Slovakia and Lithuania) and two other East European countries (Ukraine and Bulgaria), carried out one month before and six to eight months after EU enlargement in May 2004. The results of this exploratory analysis suggest a statistically significant and positive impact of acquiring EU status on earnings. The data further indicate that, in part, this effect was brought about by A8 workers gaining the right to freely change jobs after EU enlargement. There is no evidence of a ‘legalization effect’ on earnings.     

中国医疗器械出口应对欧盟壁垒的策略

目的欧盟国家公布于2005年8月起实施的WEEE指令,与2006年起实施的RoHS指令构成了医疗器械出口欧盟的环保双指令;而另一方面,它们与之前欧共体时期设定的CE认证以及欧盟医疗器械三指令又共同构成了中国医疗器械出口欧盟时的坚实壁垒。数据显示,WEEEE指令实施后的几个月内我国医疗器械产品出口欧盟的增幅与去年同期相比有所下降。因此,有必要探寻应对此类壁垒的具体策略．方法通过对各个壁垒属性分析以及带来的负面影响来探讨如何应对出口壁垒以及出口门槛日渐提高的形势。结果与结论我国医疗器械除在注重成本领先战略实施的同时,还需进一步加强和完善上市后安全监测系统和售后服务体系,同时应积极培养更有效的信息快速沟通机制．     

Geographical indications in the UK after Brexit: An uncertain future?

The protection of geographical indications (‘GIs’) within the UK is placed into doubt by the UK’s withdrawal from the European Union (‘Brexit’). The default legal position is that after Brexit, there would be no legal provision for GIs in UK law. This default position can only be changed if the UK and the EU agree the terms of the UK’s withdrawal and then their future relationship. The article considers the implications of the draft withdrawal agreement which, inter alia ensures the continuing reciprocal protection of UK and EU GIs. In July 2019, a new UK Prime Minister took office, and renegotiated the draft withdrawal agreement, which retained the reciprocal protection of GIs. The ratification of this renegotiated withdrawal agreement depends on the result of the December 2019 general election. Under the withdrawal agreement GIs from outside the EU are not protected. Consequently, the article considers how UK GIs will continue to be protected in countries that have concluded a free trade agreement with the EU, by examining the rollover agreements that the UK Government are concluding around the world. Finally, given the intention of the UK Government that, post-Brexit, the UK will conclude free trade agreements with countries that have traditionally been reluctant to recognise GIs, such as the USA and Australia, the article examines the prospects for GI protection to be included in these agreements.     

Lopsided effects of telecom reforms on mobile markets in the enlarged EU: Evidence from dynamic quantile model

The European Union (EU) has recently been significantly enlarged with addition of ten countries, almost all from Central and Eastern Europe (CEE). This was expected to enhance the performance of the mobile telecommunications industry in the accession countries and in turn to consolidate the highly fragmented European mobile telecoms market to finally reach the single market goal. However, the significant differences between mobile telecommunication performances from one country to another in the enlarged European area raise the issue of how optimal and durable the EU-level reforms have been. We use dynamic quantile regression methods to estimate the effects of mobile telecommunication reforms on the providers' performance in the EU enlargement context. This approach allows uncovering potential asymmetric effects of telecom reforms policy by letting the parameters of regressions vary across the conditional distribution of the sector's performance indicators. Using annual data from on 32 European countries from 1993 to 2011, we document asymmetrical responses to the reforms depending on the conditioning quantile at which they are calculated. Our results show that the effects of the generic and imposed European reforms are notably beneficial and larger for players in developed European countries characterized initially by real and higher degree of the reforms implementation. Accordingly, the success and durability of European reforms, especially in the new CEE member states, which often fail to comply with the pace of the reforms' adoption of industrialized European countries, is not guaranteed when countries specifications are not sufficiently taken into account. A final appealing result regarding the regress of the reform-performance relationship in the mobile markets after enlargement even for western countries attract attention on revising the Europe's current approach to telecoms regulation.