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What economic risks do animal diseases have on people
- productivity losses
- market disruptions
- livelihood risks
What drives the global trade of commodity markets?
- (now more prominant than 60 years ago because we trade so much)
In time what has affected economics and trade?
- The changing face of consumer demand! (what we like and when we like it)
- regulation of food safety, animal health in international trade
- Economic measures of trade and market effects
Talk about global trade in meat products
- high economic value that has increased in value and volume of amount exported in the last few years
- lots of money at stake and disruption give a giant loss
How can economics help with animal health (particularily trade)?
- identifies and explains why individual producers and market behave in a certain way (incentives and cost)
- Justify the need for international regulation and standard in farm animal husbandry and trade
- measure the impact of disease spread and regulation
- Advise policy makers at home and abroad about feasible solutions and way to get there
What did the Rinderpest outbreak in Belgium create?
- the need to create and international body to reguklate trade in animals and meat products (control movement etc..)
- therefore the OIE was founded in 1924 by 28 countries: the world organization for animal health (Global body that governs elements of mvmnt between countries, set standards)
- mandate: disease info system, disease surveillance and control, regulation of international trade (to allow ppl to take precautions)
After the OIE what was founded in 1995
- WTO- world trade organization
- governs the economics of trade (economic counterpart of the OIE) fair and equal trade
- agreement on the application of sanitary and phytosanitary measures (SPS): lays out rules of trade and trade products that can be affected by sanitary and phytosanitary issues
- Agreement on the application of technical barriers to trade (TBT)
What is the difference between the WTO and the OIE
- OIE is responsible for drafting the international animal health
- standards while the WTO lays out the economic side of rules and fair
What is the SPS agreement and animal trade?
- Tells not what to do but what not to do
- facilitate global trade in agri-food products avoid the use of SPS measures to restrict trade (close boarders)
- recognize the right to protect human, animal and plant health based on scientific background (OIE)\
- scientific evidence needed to allow SPS border measures (import restrictions, border closure etc)
- Harmonization, equivalence, transparency must be met when implementing trade measures (=build trust)
Why are trade policies necessary?
- SPS allows countries to take measures to protect citizens against public health safey and threasts!
- AI and BSE are proven cases
- Economic literature reports widespread misuse of SPS measures to protect markets and "stabalize" prices
- Severe negative effects for countries depending on food exports, especially developing countries dependant on agri foods
What are some of the economic impacts of animal health measures?
- measures used to control disease outbreaks:
- -widespread culls of live animals in infected areas = costs to farmers, current/ futrue loss of income
- -vaccination of surrounding stock= added cost to healthy livestock populations
- -tight controls on animal (meat) movement domestically and international = loss of business and/or trade
What are the take home messages about globalization, WTO &SPS agreements and OIE surveillance, and domestic us of SPS
- 1. Globalization of food markets makes them more vulnerable to shocls from animal disease outbreaks somewhere in the world (ie AI and BSE)
- 2. WTO and SPS Agreement, OIE surveillance and scientific evidence support fair and just regulation of livestock trade and policy measures
- 3. BUT countries also resort to domestic SPS policies to protect agi markets from foreign competition (cheaper imports)--> barrier to trade
Take home message: What does economics show about barriers to trade?
economics shows that barriers to trade hurt exporters and importers
Take home message: which countries loose the most economically?
exporters and importers dependent on trade loose the most economically
Take home message: role of consumer response in incidences
consumer response to animal heatlh incidences can contribute to economic losses in livestock sectors
Take home message: What are the various tools of the OIE and WTO?
R&D, global monitoring system, technical assistance to assure fair trade competition and protection of human/ animal health
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