Impact of organic guarantee systems on trade in organic products

Summary

The need to meet a range of organic production standards and compliance systems to export to different countries imposes additional costs on producers in exporting countries. Harmonizing these systems would reduce these costs and facilitate international trade. Data on direct and indirect costs of non-harmonization were collected for the wheat and coffee sectors. Analysis using a bilateral trade model implies that the cost of non-harmonization of organic guarantee systems could be up to $US 550 million per year, with benefits going both to producers in the newly certified countries and consumers in the importing country. Producers in countries that already have preferential access, and producers in importing countries, could be disadvantaged as compared with the present situation.