Trade impact of sanitary and phytosanitary measures on Philippine coconut oil exports, 1986- 2009. 2012.

Date

10-2012

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Piadozo, Eden S.

Abstract

The study attempted to quantify the impact of sanitary and phytosanitary measures of top importing countries (Netherlands, US, China and Italy) on Philippine coconut oil exports for the period 1986-2009. To attain the objectives of the study, descriptive analysis and a gravity model were used to analyse the secondary data gathered from FAOSTAT, World Bank, DA-BAS, BAFPS, DTI-BPS, PCA and other sources. In general, fluctuations on the trend of Philippine coconut oil exports (volume and value) due to different factors and interventions were observed. The comparison made between Philippine National Standard (PNS) and Codex/APCC Standards illustrated that in general, the local standard is at par with international standards. Results of the regression analysis using the gravity model showed that SPS standard in the form of maximum allowable Aflatoxin- B1 levels was significant and does not limit the trade flow of coconut oil exports to the countries included in the study. The country was able to comply not only with international standards but also with stringent SPS measures, standards, and regulations of importing countries. This has been possible through the help or use of (1) new and improved technologies such as kukum dryers, salt fertilization, and intercropping (CBFS) practices; (2) government regulations (e.g. PCA A.O. 02 s2003, action team on pest infestation, and planting & re-planting program); and (3) continuous research and development (R&D) programs. The study also revealed the possibility of an additional gain from trade for the Philippines amounting to an estimated average of 188.5% or more than 100 million US $ attributed to the beneficial impact of the country’s compliance with international standards and stringent SPS measures of importing countries. The study concluded that this increase in gains from coconut oil exports can only be hindered by protectionist devices and/or trade limiting actions of importing countries. While the results are quite affirmative, further studies and actions are needed to reduce trade losses due to non-tariff barriers like SPS measures and/or maximize the gains that the country could get from trade liberalization. There are still problems regarding production, marketing, and SPS implementation, particular to the coconut industry and to the country as a whole, which needs to be resolved the soonest possible in order to increase the competitiveness of Philippine coconut products and by-products in the international market.

Language

English

Location

UPLB College of Economics and Management

Call Number

Thesis

Document Type

Thesis

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