Trade restriction rationale for food safety implementation: Evidence from Southeast Asian countries

Abstract

In response to the widespread use of food safety standards as a tool for restricting international trade, this study attempts to answer whether Southeast Asian countries follow this protectionist trend or not. It employs the political economy framework and focuses on the case of the implementation of maximum residue limits (MRLs) on 113 food products which these countries import from their trading partners. The study utilizes the logit model and marginal effects to find the determinants of MRLs implementation. The estimation includes both the seven-countries and the single-country models. As for the former, the result indicates that Southeast Asian countries simultaneously use MRLs both to raise people's quality of life via food safety implementation and to protect import-competing producers. On the other hand, each single-country model provides a clearer picture of the reasons for its enforcement of MRLs; one is with trade restriction motive, while the others are with welfare improving purpose.