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Pesticides Residues and Trade: the Apple of Discord?

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  • Drogue, Sophie
  • DeMaria, Federica

Abstract

The impact of food safety standards on international trade has already been addressed. Generally, economists try to assess trade losses borne by exporters when importing countries impose stricter regulations. In this paper we assess the impact of the Maximum Residue Levels (MRL) of pesticides on the trade of apples and pears. Rather than focusing on a particular pesticide we take into account the entire list of substances set out by the various regulations with the aim is to understand how the similarity (or dissimilarity) of these can affect trade. Most studies assess the impact of sanitary standard regulations introducing directly in the analysis the MLR put in force in the importing country. We assume that what can be crucial is the difference in the tolerance levels of both the importing and exporting country. Having built a similarity index we then introduce it into a gravity equation to assess the impact of differences in MRL of pesticides on the trade of apples and pears of seven exporting and seven importing countries. Results suggest that harmonizing regulations impacts trade differently depending on the exporter.

Suggested Citation

  • Drogue, Sophie & DeMaria, Federica, 2011. "Pesticides Residues and Trade: the Apple of Discord?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114445, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae11:114445
    DOI: 10.22004/ag.econ.114445
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    More about this item

    Keywords

    Crop Production/Industries; International Relations/Trade;

    JEL classification:

    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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