Salmonella Program in the European Union and the Trade Dispute with Brazil at the World Trade Organisation: a Partial Equilibrium Framework

newdigital Salmonella Program in the European Union and the Trade
Dispute with Brazil at the World Trade Organisation:
a Partial Equilibrium Framework

Article

Magazine

RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI

Fascicle

RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI - 2023 - 1. A special issue in honor of Gerd Weinrich

Title

Salmonella Program in the European Union and the Trade Dispute with Brazil at the World Trade Organisation: a Partial Equilibrium Framework

Author

Mahdi Ghodsi

Publisher

Vita e Pensiero

Format

Article |

Pdf

Online from

05-2023

Doi

10.26350/000518_000114

Issn

0035-676X (print) | 1827-7918 (digital)

€ 6.00

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Description

This contribution provides a cost-benefit analysis in a partial equilibrium framework to investigate the welfare consequences of a prohibitive regulatory sanitary and phytosanitary (SPS) measure aimed at a foreign product with perceived negative characteristics. Two groups of consumers are distinguished: one that is indifferent to the foreign product’s negative attributes, and another that is concerned about them. Different scenarios concerning the welfare gains from the introduction of an NTM are explored. The welfare implications depend on consumer awareness and information policies pursued by the imposing government. The theoretical model is illustrated with data on the production and importation of prepared poultry in the EU. This paper focusses on the recent Dispute Settlement (DS) case 607 at the World Trade Organization (WTO) that was initiated by Brazil in November 2021 to consult with the EU on restrictive SPS measures imposed on the importation of prepared and preserved poultry.