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Abstract
In this paper, indirect costs of Finnish
Salmonella Control Program (FSCP) due to its trade
effects are evaluated. FSCP is a part of Finnish
biosecurity policies intended to shield Finnish food
supply and consumption chain from salmonella
outbreaks. The program directly increases costs of
importing by e.g. requiring costly certificates for
imports. Additionally, it may cause anxiety to suppliers
of imports as there are added uncertainties in the import
process. As similar requirements apply to domestic
suppliers, the program should not be thought of as a
technical trade barrier (TBT), however, it may affect
trade flows indirectly and effects may be assessed in a
similar manner as those of TBT’s. The evaluation of the
trade effects is performed using a combined price
wedge-gravity
approach and they are quantified as
tariff-equivalents.
After determining the tariff
equivalent, sensitivity results are provided as some of
the parameter values used in the calculation are difficult
to observe directly.