T. Otsuki et al., What price precaution? European harmonisation of aflatoxin regulations andAfrican groundnut exports, EUR R AGR E, 28(3), 2001, pp. 263-283
The effects of varying regulatory standards on trade in agricultural produc
ts are at the forefront of policy debate. This paper employs a gravity mode
l to estimate the impact of changes in aflatoxin standards on trade flows o
f groundnut products using trade data for Europe and Africa during 1989-199
8. Results suggest that a 10 per cent tighter aflatoxin standard in Europea
n countries will reduce edible groundnut imports by 11 per cent. A new Euro
pean 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.