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Product differentiation under the WTO; An analysis of labelling and tariff or tax measures concerning farm animal welfare

Author

Listed:
  • Eaton, Derek J.F.
  • Bourgeois, J.
  • Achterbosch, Thom J.

Abstract

This report examines the possibility of giving preferential treatment to imports of meat products that meet improved standards in terms of animal welfare in production. Three specific forms of preferential treatment are considered here as possible measures for increasing levels of animal welfare in meat production in the EU and its exporting partners: labelling of products (either voluntary or compulsory), differentiated import tariffs and differentiated consumer taxes. The likely admissibility of such measures under WTO rules is assessed by means of an analysis of previous decisions by WTO dispute settlement panels. It is concluded that all of the measures analysed have a possibility of being upheld, based on a defence relying on Article XX of the GATT and perhaps also the TBT Agreement. While the incentives offered by labelling could be reinforced with differentiated tariffs or taxes, these financial instruments involve various additional complications. They could best be considered after the possibilities of regulated labelling schemes have been exhausted.

Suggested Citation

  • Eaton, Derek J.F. & Bourgeois, J. & Achterbosch, Thom J., 2005. "Product differentiation under the WTO; An analysis of labelling and tariff or tax measures concerning farm animal welfare," Report Series 29123, Wageningen University and Research Center, Agricultural Economics Research Institute.
    • Handle: RePEc:ags:aerirs:29123
    DOI: 10.22004/ag.econ.29123
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    References listed on IDEAS

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    2. Dyck, John H. & Nelson, Kenneth E., 2003. "Structure Of The Global Markets For Meat," Agricultural Information Bulletins 33701, United States Department of Agriculture, Economic Research Service.
    3. Reardon, Thomas & Farina, Elizabeth Maria Mercier Querido, 2001. "The Rise Of Private Food Quality And Safety Standards: Illustrations From Brazil," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 4(4), pages 1-9.
    4. Golan, Elise H. & Kuchler, Fred & Mitchell, Lorraine, 2000. "Economics Of Food Labeling," Agricultural Economic Reports 34069, United States Department of Agriculture, Economic Research Service.
    5. Peterson, Everett B. & Orden, David, 2005. "Effects of Tariffs and Sanitary Barriers on High- and Low-Value Poultry Trade," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(1), pages 1-19, April.
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