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THE AVOCADO DISPUTE AND OTHER TECHNICAL BARRIERS TO
AGRICULTURAL TRADE UNDER NAFTA
David Orden and Eduardo Romano*
Recent attention to agricultural trade policy has turned to iues of technical barriers,particularly sanitary and phytosanitary(SPS)regulations, that constrain movement of products acro international borders.It is intuitive that there are public good arguments that make some SPS restrictions neceary to insure a safe food supply and protect domestic animal herds and plant stocks from pests and diseases.In other cases, regulations rationalized on technical grounds seem to lack firm scientific foundations and appear, at least to potential beneficiaries of expanded trade, to be imposed primarily to shield domestic producers from competition.That such controversies arise is not surprising.Their likelihood is suggested by the economic theory of regulation, sometimes referred to as “capture” theory.Applied to technical trade barriers, the theory suggests that when there is doubt about the merit of a technical restriction, domestic interest groups will often succeed in obtaining protective decisions from domestic regulatory agencies.Both NAFTA and the WTO addre iues of SPS and other technical trade barriers.Under NAFTA, it was agreed that each country retains the right to adopt SPS measures to protect human, animal, and plant life and health, that each country has the right to establish appropriate levels of protection, and that SPS measures must be based on scientific evidence, be
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* Profeor and graduate research aistant, respectively, Department of Agricultural and Applied Economics, Virginia Polytechnic Institute and State University, Blacksburg, Virginia 24061(email: orden@vt.edu).Invited paper presented at the conference on NAFTA and Agriculture: Is the Experiment Working, San Antonio, Texas, November 1996.We thank Donna Roberts and Suzanne Thornsbury for helpful comments.
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