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Quality Restrictions As Barriers To Trade: The Case Of European Community Regulations On The Use Of Hormones

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  • Peterson, E. Wesley F.
  • Paggi, Mechel S.
  • Henry, Guy

Abstract

Sanitary regulations, product definitions, grades, production or processing regulations, and other qualitative standards are generally applied to both domestic production and imported goods. These quality restrictions can be seen as trade barriers, although it is often difficult to determine whether a given restriction is based on legitimate health or safety concerns or is simply an alternative device for protecting producers. The purpose of this paper is to evaluate the welfare effects of a recent quality regulation, the European Community ban on the use of hormones in livestock production. A conceptual framework is developed to analyze the effects of the ban on the market for edible offals. The results indicate that Community prices for edible offals will increase 34% to 45%, while the world price will fall by at least 35%.

Suggested Citation

  • Peterson, E. Wesley F. & Paggi, Mechel S. & Henry, Guy, 1988. "Quality Restrictions As Barriers To Trade: The Case Of European Community Regulations On The Use Of Hormones," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 13(1), pages 1-10, July.
    • Handle: RePEc:ags:wjagec:32154
    DOI: 10.22004/ag.econ.32154
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    File URL: https://ageconsearch.umn.edu/record/32154/files/13010082.pdf
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    References listed on IDEAS

    as
    1. Unknown, 1981. "Foreign Agricultural Trade of the United States May/June 1981," Foreign Agricultural Trade of the United States (FATUS) 164317, United States Department of Agriculture, Economic Research Service.
    2. Roy Allen & Claudia Dodge & Andrew Schmitz, 1983. "Voluntary Export Restraints as Protection Policy: The U.S. Beef Case," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(2), pages 291-296.
    3. Nicola Blyth, 1984. "The Eec Sheepmeat Market And Voluntary Export Restraint Agreements," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 28(1), pages 33-43, April.
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    Cited by:

    1. Jayson L. Lusk & Jutta Roosen & John A. Fox, 2003. "Demand for Beef from Cattle Administered Growth Hormones or Fed Genetically Modified Corn: A Comparison of Consumers in France, Germany, the United Kingdom, and the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 16-29.
    2. Skully, David, 1992. "The Mechanics of Minimum Quality Standards," WAEA/ WFEA Conference Archive (1929-1995) 321386, Western Agricultural Economics Association.
    3. Costa, Rafael & Bessler, David & Rosson, C. Parr, 2015. "The Impacts of Foot and Mouth Disease Outbreaks on the Brazilian Meat Market," Journal of Food Distribution Research, Food Distribution Research Society, vol. 46(3), pages 1-19, November.
    4. Xia, Tian & Weyerbrock, Silvia, 1998. "Veterinary Standards As Barriers To Trade: The Case Of Poultry Trade Between The U.S. And The Eu," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20924, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Lusk, Jayson L. & Fox, John A., 2000. "Consumer Valuation Of Beef Ribeye Steak Attributes," 2000 Annual meeting, July 30-August 2, Tampa, FL 21793, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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