The trade impact of sanitary and phytosanitary standards on Philippine tuna export: the case of lead content regulation, 1985 -2011.

Date

4-2013

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Piadozo, Eden S.

Committee Member

Quicoy, Cesar B. Pabuayon, Isabelita M.

Abstract

The study aimed to determine the economic impact of Sanitary and Phytosanitary (SPS) measures on the exports of Philippine tuna. This was done through: (1) comparing the SPS measures affecting tuna exports adopted by the Philippines with the SPS measures adopted by its top importing countries; (2) characterizing the trend on the changes on the volume and value of tuna products exported by the Philippines upon compliance with the SPS standards imposed by the top importing countries; and (3) quantifying the impact on the country’s volume, value, and forgone revenue of tuna exports on the basis of complying with the SPS standard that is the maximum allowable lead content levels set by the top importing countries. The study focused on the Philippines’ exports of fresh and canned tuna to import partners namely: US, Japan, Germany, Singapore, and Thailand. Secondary data were used throughout the study which include world and domestic data from 1985 to 2011. To attain the objectives of the study, descriptive and trend analysis, and a gravity model using regression were used to analyze the secondary data gathered from the Bureau of Fisheries and Aquatic Resources (BFAR), the Bureau of Agricultural Statistics (BAS), FAOSTAT, CODEX Standards, and other reliable journals. SPS measures adopted by the Philippines and its top importing countries of tuna exports were compared. It was revealed that in general, the Philippines has been lagging behind the measures of the major importing countries of tuna products. Disparities between the measures adopted by the Philippines and the measures of USA and Germany regarding laboratory requirement were observed in terms of the acceptable level of chemical residues and the allowable amount of microbial substances in tuna products. Moreover, the Philippines lacks innovations on packaging of canned forms of tuna and on the improvement on information content of its labels in contrast with Thailand which has already applied the necessary measures on better packaging and proper labeling. The implementation of SPS measures under the provisions given by SPS Agreement increases the gains from trade of tuna exports. Trends on the volume and value of tuna products exported by the Philippines to its major importing countries are characterized by the compliance of the Philippines with the SPS standard imposed by an importing country. Initially, a decrease on the volume and value of tuna exports was observed on years when the Philippines failed to comply with the SPS standards imposed by an importing country; however, once we have complied, a sudden increase on the export volume and value was observed. The decrease on the export volume and value of tuna exports upon failure on complying with the standards imposed by an importing country would mean that stringent SPS standards limit the volume and value of tuna exports which translates to its large forgone revenue. Results of the regression analysis using the gravity model serve as supporting evidence confirming that imposition of certain SPS standard in the form of the maximum allowable lead content level was significant and proven to limit trade flow of tuna exports from the Philippines by measuring the forgone revenue brought about by the compliance with the given standard. Another significant finding is that distance as an independent variable affecting the trade volume of tuna exports gained positive coefficient which implies a direct positive relationship with the volume of tuna exported by the country. This contradiction of signs was due to: (1) the accession of the Philippines on various international organizations under the Regional Fisheries Management Operations (RFMO); and (2) the improvement on transportation measures adopted by the Philippines after its tragic downfall during the past years. This explains that the Philippines conforms with the measures and standards of the major importing country in terms of transportation requirement. The study revealed the possibility of an additional gain from trade for the Philippines amounting to an estimated US $186 million if not limited by the implementation of SPS standard or if have been complying on it. Adequate attention on proper implementation of policies regarding tuna exportation is needed to easily adapt to stringent SPS measures and be able to improve the access of Philippine tuna products in the global market.

Language

English

Location

UPLB College of Economics and Management

Call Number

Thesis

Document Type

Thesis

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