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Exporters of agriculture and allied products are experiencing an increase in Non-Tariff Measures (NTM) in the form of food standards. Over the last two and half decades, rising NTM, including Sanitary and Phytosanitary (SPS) measures and Technical Barriers to Trade (TBT) appear to negate any benefits accruing from declining tariffs. The adoption of higher standards reflects efforts, generally by developed nations, towards protecting both human and environmental health. However, the burden of compliance falls on the upstream players of the supply chain, mostly located in the global south.
This dissertation focuses on the impact of food standards on the international trade of marine products. The first research question investigates the differential impact of food standards on marine exports from rich and poor countries. The study finds that imposing food standards has a negative impact on marine exports. However, the imposition of food standards has increased intensely after 2008. Post 2008, relatively richer countries were able to expand their marine exports, unlike the poorer nations. The second research question explores the impact of international food standards on the export behavior of Indian marine firms. The study finds that food standards negatively influence both extensive and intensive margins of exports. However, larger, profitable, and highly productive firms stand to gain from imposition of standards and hence are relatively better off in complying with standards. The third research question examines the significance of private standards in the marine export industry. The study finds that firms cite better prices, new markets/buyers, and improvements in quality and branding as reasons for adopting private standards, despite additional compliance costs and regular audits. Firm size is a dominant characteristic that enables firms to adopt private certificates and benefit from them. Firms in the 3rd to 5th quintile of total revenue have a substantially higher likelihood of having have private certificate, resulting in higher inequality among firms.
All three studies suggest that unequal access to markets, created by imposition of food standards, leads to an uneven distribution of benefits from trade across nations and also across firms in India.
