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Trade and the strongPolitical Economystrong of Food Standards.pdf

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Journal of Agricultural Economics, Vol. 62, No. 2, 2011, 259–280 doi: 10.1111/j.1477-9552.2011.00294.x Trade and the Political Economy of Food Standards Johan F. M. Swinnen and Thijs Vandemoortele1 (Original submitted June 2010, revision received October 2010, accepted Decem- ber 2010.) Abstract This article presents a political economy model of public standards in an open economy. We use the model to derive the political optimum and to analyse dif- ferent factors that have an inﬂuence on this political equilibrium. We analyse the relationship between trade and the political equilibria and compare the political outcome with the social optimum to identify under which cases political consider- ations lead to standards being set ‘too low’ or ‘too high’, and which standards could be labelled as protectionist measures. Keywords: Food and agriculture; political economy ; regulation, public policy; standards; trade. JEL classiﬁcations: Q18, P16, L15. Under the German [trade] law of 1880 imports of livestock were controlled for ‘sanitary reasons’. By 1889 the government had all but closed the borders to imports of live animals. … A law of 1900 prohibited imports of sausages, canned meat and meat with preservatives; imports of pickled and salted meat had to be in pieces of at least 4 kg; imports of meat (other than pickled or salted) had to consist of whole beef carcasses or half pig carcasses, could enter only at certain ports and on certain days, and were subject to high inspection fees. If the quality of imported meat was judged doubtful, it was destroyed, though domestic meat of similar quality could be sold.2 Tracy (1989) 1 Johan F. M. Swinnen and Thijs Vandemoortele are with