Food safety incidents, collateral damage and trade policy responses: china-canada agri-food trade
Abstract
As markets become globalized, food safety policy and international trade policy are increasingly intertwined. Globalization also means that food safety incidents are widely reported internationally. One result is that food safety incidents can negatively impact products where no food safety issue exists as consumers lose trust in both foreign and domestic food safety institutions. While the policy framework for dealing with directly effected imported foods is well understood, how to deal with the market failure associated with indirectly affected products within the existing trade policy rules has not been explored. Using the example of Chinas 2007 problems with a spate of products safety incidents, a theoretical framework is developed and the response of both the Chinese and Canadian governments analyzed. A cooperative approach to the issues appears to have a number of advantages and does not contravene trade policy commitments.
Food safety incidents, collateral damage and trade policy responses: china-canada agri-food trade
FOOD SAFETY INCIDENTS,
COLLATERAL DAMAGE AND TRADE
POLICY RESPONSES:
CHINA-CANADA AGRI-FOOD TRADE
CATPRN Working Paper 2008-04
April 2008
Huanan Liu
Visiting Professor
Jill E. Hobbs
Professor and Head
William A. Kerr
Van Vliet Professor
Department of Bioresource Policy, Business and Economics
University of Saskatchewan
Canada
http://www.catrade.org
Funding for this project was provided by the Canadian Agricultural Trade Policy Research Network
(CATPRN). CATPRN is funded by Agriculture and Agri-Food Canada but the views expressed in
this paper are those of the authors and should not be attributed to the funding agency.
Abstract
As markets become globalized, food safety policy and international trade policy
are increasingly intertwined. Globalization also means that food safety incidents
are widely reported internationally. One result is that food safety incidents can
negatively impact products where no food safety issue exists as consumers lose
trust in both foreign and domestic food safety institutions. While the policy
framework for dealing with directly effected imported foods is well understood,
how to deal with the market failure associated with indirectly affected products
within the existing trade policy rules has not been explored. Using the example of
China’s 2007 problems with a spate of products safety incidents, a theoretical
framework is developed and the response of both the Chinese and Canadian
governments analyzed. A cooperative approach to the issues appears to have a
number of advantages and does not contravene trade policy commitments.
Key words: Canada, China, cooperation, food safety, market failure, trade policy
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