III. KEY ISSUES ARISING FROM THE IMPLEMENTATION OF SPS No work has been undertaken to study the impact of Sanitary and Phytosanitary agreement of WTO on export of agricultural products from Pakistan. Few studies have however addressed the issue of SPS measures and developing country exports directly, although in most cases the related cost of compliance and impact of trade flows is not quantified. SPS measures are claimed to be an impediment to exports of, for example: fish, spices, livestock products and horticultural products. More theoretical work has demonstrated that developing countries find it difficult to trade with developed countries due to differences in quality equipments, which in turn reflect prevailing consumer demand or the nature of government regulation [Murphy and Shleifer (1997)]. An attempt was undertaken to quantify the costs of compliance with SPS measures in Bangladesh. It was found that the cost of upgrading sanitary conditions in the Bangladesh frozen shrimp industry to satisfy EU and US hygiene requirements amounted to $ 17.6 million, mainly incurred for upgrading plants over the years 1997-98. This gave an average expenditure per plant of $ 239,630. The natural industry cost required to maintain HACCP was estimated to be $ 2.2 million per annum. Further, the Government of Bangladesh was estimated to have spent $ 283,000 over this period and predicted an expenditure of $ 225000 per annum to maintain a HACCP monitoring programme [Cato
Posted on: Mon, 27 Jan 2014 14:46:13 +0000
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