Assessment of Effects of EU Aflatoxin Standards along Cereals Value Chain in Russia: German Methodological Proficiency Complemented by Russian Local Knowledge

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Globalization raised the importance of food safety and quality concerns. Developed countries implement precautionary food regulation policies to protect their affluent consumers from unsafe food imported from developing and transition countries. However, the alarming number of trade disputes at WTO evidences cases of abuse of such policies. While claims on protectionist nature of food regulations are valid in principle, yet there is little empirical evidence about their economic effects. The questions of 1) quantification of trade impact of food standards and 2) investigation of national food regulation systems are absolutely essential for the new trade agenda. These problems for developing countries are on the focus of trade policy debate, whereas for transition countries are not considered seriously. Such a research for these recently liberalized markets gains a special significance. ¿ The proposed research will employ Gravity Model for quantitative estimation of impact of EU aflatoxin standards on transition countries¿ exports.¿ Russian food regulations for cereal value chain, their enforcement and monitoring mechanisms will be investigated through value chain and cost-benefit analysis.¿ Compliance of Russian norms with EU standards will be estimated applying comparative advantage analysis.The study area is Stavropol region of the Russian Federation. Local experts will contribute to the construction of the research data set and analysis. The results of the research will assist 1) international policy makers in designing new global trade agenda and 2) Russian producers, exporters and decision makers in improving cereal value chain.