Christine Wieck

The Impact of Regulatory Heterogeneity on Agri-food Trade

We estimate the impact of regulatory heterogeneity on agri-food trade using a gravity analysis that relies on detailed data on non-tariff measures (NTMs) collected by the NTM-Impact project. The data cover a broad range of import requirements for agricultural and food products for the EU and nine of its major trade partners. We find that trade is significantly reduced when importing countries have stricter maximum residue limits (MRLs) for plant products than exporting countries. For most other measures, due to their qualitative nature, we were unable to infer whether the importer has stricter standards relative to the exporter, and we do not find a robust relationship between these measures and trade. Our findings suggest that, at least for some import standards, harmonising regulations will increase trade. We also conclude that tariff reductions remain an effective means to increase trade even when NTMs abound.

Assessment of the Impact of Avian Influenza–related Regulatory Policies on Poultry Meat Trade and Welfare

We use two methodological approaches to analyze avian influenza related quarantine measures. First, a Heckman type gravity model is used to estimate the trade impact and second, a spatial partial equilibrium simulation model is developed to simulate welfare changes. The simulation model considers spread and transmission risk according to the disease status of the importing country as well as parameter uncertainty of the calibrated coefficients by using a Monte Carlo approach. The econometric results show that the principle of regionalization is preferred to import trade bans for uncooked meat. The simulation results verify the negative welfare impact of currently implemented regulatory policies and indicate that significant trade diversion effects according to the disease status of countries occur. The welfare results confirm that a trade ban is not the most appropriate measure to address the infection risk resulting from the spread of the avian influenza virus.

Evaluation of minimum animal welfare conditions in national standards and farm certification schemes for pig fattening

Abstract This paper aims at assessing the status of animal welfare in Austria and Germany as it is regulated by private, national, and European animal welfare legislation. In order to achieve this, an inventory of existing private and state-driven animal welfare certification schemes that are relevant for fattening pigs in Austria and Germany is done, and the overlap between legislative and private certification requirements for animal welfare analyzed. The papers methodological contribution lies in the development of an assessment approach based on the Austrian “Animal Needs Index” that allows the evaluation of minimum farm animal welfare standards without expensive and time-consuming on-farm measures. The comparison of legislative and private certification scheme pig standards indicate slight differences between the minimum animal welfare obligations of certification schemes existent in Austria and Germany whereas the reviewed Austrian scheme obligations show in general more diversification from the evaluated legislative standards.

The economic effect of the Canadian BSE outbreak on the US economy.

Before the discovery of the first Bovine Spongiform Encephalopathy (BSE) cow in May 2003, Canada was the most important exporter of live cattle into the US with a share of 74% of US total live cattle imports. With the outbreak of BSE in Canada, the US ceased imports of Canadian cattle and beef products. This study analyses the short to medium-term effect of the import trade ban for the US economy using a 20 sector, economy wide Computable General Equilibrium (CGE) model. Uncertainty about exogenous elasticity values was addressed using Monte Carlo techniques. Beneficiaries of the trade ban are the cattle industry and related sectors, such as feed production and agricultural service providers. The US economy as a whole, however, is negatively affected with a loss of ∼

Regulatory Differences in the Approval of GMOs: Extent and Development over Time

-1.7 billion in gross domestic product and –11000 jobs. The model shows how the restriction on Canadian cattle imports generates income losses for both rich and poor households in the US.

Does the "green box" of the European Union distort global markets?

Considering the regulatory approval developments for cotton, maize, and soybean within the time period 2000–2013, this paper assesses the extent of asymmetry in the authorizations of new genetically modified organism (GMO) events between importing and exporting countries. The results show an increase in the asynchronous approval across the majority of country pairs. However, focusing only on commercialized events and considering only regulatory approval differences in which the importers are more stringent than the exporters, the asynchronous approval is considerably lower, and the result indicates that the major trade leaders have synchronized their approval status for GMOs over time. Some countries, such as Norway, Switzerland, Thailand, and Turkey seem to face the highest potential for trade disruption, while the opposite holds for Japan and South Korea.

Determinants, differentiation, and development of short-term marginal costs in dairy production: an empirical analysis for selected regions of the EU

The vast majority of domestic support to farmers in the European Union (EU) is notified in the World Trade Organisation (WTO) green box as decoupled payments. The EU considers this support to minimally distort production and/or trade. As demonstrated in the literature, this claim is questionable. This paper aims at analyzing this claim using a global, spatially differentiated, partial equilibrium simulation model with endogenous land supply functions. Comparing a complete elimination of the EU green box measures with a baseline scenario, the model results indicate only small distortionary effects in production and trade. Hence, EU support notified to the green box seems to be compatible with the general requirements of the green box. The finding seems to result from the assumption of unchanged EU border policies.