What Price Precaution? European Harmonisation of Aflatoxin Regulations and African Groundnut Exports
Posted: 29 Feb 2008
Abstract
The effects of varying regulatory standards on trade in agricultural products are at the forefront of policy debate. This paper employs a gravity model to estimate the impact of changes in aflatoxin standards on trade flows of groundnut products using trade data for Europe and Africa during 1989-1998. Results suggest that a 10 per cent tighter aflatoxin standard in European countries will reduce edible groundnut imports by 11 per cent. A new European Union regulation on aflatoxins will result in a trade flow that is 63 per cent lower than when the Codex Alimentarius international standards are followed.
Keywords: EU food safety regulation, Africa, groundnuts, aflatoxins standards, gravity model
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