ANSC 100

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  1. What economic risks do animal diseases have on people
    • productivity losses
    • market disruptions
    • livelihood risks
  2. What drives the global trade of commodity markets?
    • Globalization
    • (now more prominant than 60 years ago because we trade so much)
  3. 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
  4. 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
  5. 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
  6. 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)
  7. 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)
  8. 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
    • trade
  9. 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)
  10. 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
  11. 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
  12. 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
  13. Take home message: What does economics show about barriers to trade?
    economics shows that barriers to trade hurt exporters and importers
  14. Take home message: which countries loose the most economically?
    exporters and importers dependent on trade loose the most economically
  15. Take home message: role of consumer response in incidences
    consumer response to animal heatlh incidences can contribute to economic losses in livestock sectors
  16. 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
Card Set:
ANSC 100

Animal Health & Economics
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