The European Union sanitary and phytosanitary measures and Africa’s exports
Title: The European Union sanitary and phytosanitary measures and Africa’s exports
Author: KAREEM, Olayinka Idowu
Series/Number: EUI RSCAS; 2014/98; Global Governance Programme-137; Global Economics
Changes in tastes and preferences in importing countries as well as the need to keep the environment safe, especially in developed markets, has contributed to a rising trend in the demand for sanitary and phytosanitary measures for quality products. However, the stringency and the preponderance of these measures have effects on trade, particularly for the developing and least developed countries in Africa. The effects often influence the attainment of the development aspirations of these Africa countries, especially employment, poverty reduction and sustainable growth. To this end, this study investigates the export effects of the EU standards for Africa. It uses the two-step Helpman et al. (2008) extensive and intensive trade margins model for two high-value foods and two traditional products. The EU standard requirements for each product are called the ‘hurdle to pass’ before the product can gain access to the EU market. In all, 52 African countries are considered in an empirical analysis covering the period 1995 to 2012. The study finds that product standards for fish and cocoa are trade-enhancing at the extensive margins, but this is not the case at the intensive margins. However, the standards are trade-inhibiting at both the extensive and intensive margins of exports for vegetables, while the standards are trade-restrictive at the extensive margins and trade-enhancing at the intensive margins for coffee. Thus, the findings suggest that the impacts of standards on exports are commodity-specific due to the significant differences in the costs of compliance, the size of the exporting firms or countries, access to development assistance and the commodity-specific interests of countries. The study recommends development partnerships and alliance policies on the part of Africa, with the development of institutions that can improve the level of standard-compliance in all African exporting markets.
Subject: Technical regulations; Food exports; Africa; EU; Gravity model; C33; C87; F13; F42
Type of Access: openAccess