INTERNATIONAL TRADE AND FOOD SAFETY: ECONOMIC THEORY AND CASE STUDIES

Food safety regulations and the perception of risk are different among countries. This can lead to persistent trade frictions and even reduce food trade. These differences may also lead to increased dialogue between countries, with improved food safety systems the result. Although little disruption to trade has occurred for food safety reasons (considering the total volume of food trade), trade issues or crises related to food safety are wide ranging. These issues and crises challenge policymakers and industries to both protect domestic food supplies and nurture international markets. Meanwhile, consumers in developed countries are demanding safer food. Risk reduction measures and quality certification programs can not only pre-empt food safety crises, but can better position exporters in emerging overseas markets. However, coherency between trade and food safety goals requires public intervention and investment and/or private costs