Abstract:
The globalization of food trade has needed robust traceability systems to ensure consumer safety, quality and sustainability product. By fostering transparency in agricultural practices and encouraging responsible resource use, traceability plays a key role in protecting the environment and supporting sustainable development. This study examines the trade effects of traceability-related non-tariff measures (NTMs) on international trade, focusing on input and processing traceability in agricultural sector, with specific analyses in the meat, fruit, and fisheries sectors. Utilizing a structural gravity model and Poisson pseudo-maximum likelihood estimation with high-dimensional fixed effects (FE), we analyze trade flows across 53 exporting and 56 importing countries, covering 2,081 agri-products from 2012 to 2021. The findings reveal that input traceability measures generally increase trade, while processing traceability often poses trade barriers. The interaction between input and processing traceability measures presents positive effects in the meat sector. These results underscore the nuanced role of traceability measures, highlighting the need for tailored policy approaches that consider the unique characteristics of different sectors and countries. The findings emphasize the critical need to balance trade facilitation with stringent safety, quality, and sustainability standards.