impact of the sanitary and phyto sanitary agreement on theexports of marine products from india

363 Pages·2012·6.6 MB·English

““IIMMPPAACCTT OOFF TTHHEE SSAANNIITTAARRYY AANNDD PPHHYYTTOO SSAANNIITTAARRYY AAGGRREEEEMMEENNTT OONN TTHHEE
EEXXPPOORRTTSS OOFF MMAARRIINNEE PPRROODDUUCCTTSS FFRROOMM IINNDDIIAA WWIITTHH SSPPEECCIIAALL
RREEFFEERREENNCCEE TTOO KKEERRAALLAA””

Thesis Submitted to the
Cochin University of Science and Technology
for the award of the Degree of
Doctor of Philosophy
Under the Faculty of Social Sciences

by
PPAARRVVAATTHHYY PP
Reg. No. 3247
Under the guidance of 
PPrrooff.. ((DDrr..)) DD RRAAJJAASSEENNAANN

DEPARTMENT OF APPLIED ECONOMICS
COCHIN UNIVERSITY OF SCIENCE AND TECHNOLOGY
KOCHI – 682 022, KERALA
NOVEMBER, 2012
Impact of the Sanitary and Phyto Sanitary Agreement on the
Exports of Marine Products from India with Special Reference to Kerala

Ph.D. Thesis under the Faculty of Social Sciences

Parvathy P
Research Scholar
Department of Applied Economics
Cochin University of Science and Technology
Kochi - 682022
Email: [email protected]

Supervising Guide
Prof. (Dr.) D. Rajasenan
Professor
Department of Applied Economics
Cochin University of Science and Technology
Kochi - 682022
Email: [email protected]

Department of Applied Economics
Cochin University of Science and Technology
Kochi - 682022

November, 2012
DDEEPPAARRTTMMEENNTT OOFF AAPPPPLLIIEEDD EECCOONNOOMMIICCSS
CCOOCCHHIINN UUNNIIVVEERRSSIITTYY OOFF SSCCIIEENNCCEE AANNDD TTEECCHHNNOOLLOOGGYY
KKOOCCHHII –– 668822 002222,, KKEERRAALLAA,, SS.. IINNDDIIAA
Phone: 0484 – 2576030, 2862561
Email: [email protected]

Dr. D. Rajasenan
Professor
Date: ……………..

This is to certify that the thesis entitled “Impact of the Sanitary and
Phyto Sanitary Agreement on the Exports of Marine Products from India with
special reference to Kerala” is a record of bona fide research work carried out
by Ms. Parvathy P under my supervision and guidance. This is an original
piece of research and has not formed the basis for award of any degree,
diploma, associateship, fellowship or other similar title of any other University
or Board and is worth submitting for the award of Doctor of Philosophy under
the Faculty of Social Sciences of Cochin University of Science and
Technology.

D Rajasenan
Supervising Guide
I hereby declare that the dissertation entitled “Impact of the Sanitary
and Phyto Sanitary Agreement on the Exports of Marine Products from
India with Special Reference to Kerala” is a record of the bona fide research
work done by me and that it has not previously formed the basis for the award of
any degree, diploma, associateship, fellowship or any other title of recognition.

Kochi - 22 Parvathy P.
As my research draws to its end, I would like to express my sincere thanks to
all those who have supported me in this endeavour. I shall express my deep
gratitude and sincere thanks to Dr. D. Rajasenan, Professor, Department of
Applied Economics, CUSAT who has earnestly steered the direction of my research
through his invaluable inputs. His insightful suggestions, meticulous supervision
and continuous encouragement helped me fulfil the research. I shall also mention
here that it has been his persevering efforts and encouragement that enabled me
secure two research publications to my credit and also kindled my interest in such
academic pursuits to which I owe him a lot.
I would also like to thank the members of the faculty of the Department of
Applied Economics, CUSAT for all the support extended to me. I acknowledge
with thanks Dr. M Bhasi, Dean, Faculty of Social Sciences and Professor, School
of Management Studies, CUSAT who has been my doctoral committee member for
all the help extended to me.
I owe a lot to the staff of various Departments of Marine Products Exports
Development Authority, Kochi who have offered unrelenting support by furnishing
all the needful information. I shall also thank the officials of Export Inspection
Agency, Kochi for giving me the required data. I also thank the seafood exporters
for willingly divulging the information.
I am deeply indebted to Dr. Mahesh Ramachandran, Senior Urban
Economist, Ministry of Housing, Bahrain for the help he has offered me to analyze
the data. I acknowledge with deep sense of obligation his efforts to build models
for forecasting as this piece of analysis has lent strength to my research.
I shall also thank the librarian and the non teaching staff of the Department
of Applied Economics for their support. I would also like to thank all my friends,
relatives, colleagues and well wishers for offering me unfailing support during the
course of my research.

Parvathy P.
Chapter 1
MMaarriinnee PPrroodduucctt EExxppoorrtt TTrraaddee ooff KKeerraallaa –– AAnn EExxpplloorraattiioonn ooff
IIssssuueess iinn tthhee BBaacckkggrroouunndd ooff tthhee SSaanniittaarryy aanndd PPhhyyttoo SSaanniittaarryy
AAggrreeeemmeenntt ooff tthhee WWTTOO 0011 -- 5511
1.1 Introduction 01
1.2 Statement of the Problem 02
1.3 Importance of the Study 04
1.4 Review of Literature 07
1.4.1 Evolution of Quality and Safety Standards on Trade in
Food Products 08
1.4.2 Evolution of Quality and Safety Standards in Fish and
Fishery Products Trade 15
1.4.3 Methodologies on Measurement of Effects of NTMs on
Trade 18
1.4.4 Effects of NTMs on Trade with reference to Developing
Countries 21
1.4.5 Factors Affecting the Adoption of Quality Control
Programme in Firm/Industry 37
1.5 Objectives 40
1.6 Hypotheses 40
1.7 Theoretical Framework 40
1.7.1 Definition of NTMs 41
1.7.2 Measurement of NTMs 42
1.8 Research Design 45
1.9 Methodology 47
1.9.1 Statistical Tools 48
1.10 Chapterisation 49
1.11 Limitations 50
Chapter 2
TThhee SSPPSS AAggrreeeemmeenntt aanndd FFoooodd SSaaffeettyy SSttaannddaarrddss iinn tthhee
PPrreesseenntt GGlloobbaall FFiisshh TTrraaddee SScceennaarriioo 5533 -- 8833
2.1 Overview of International Trade in Fish and Fishery Products 53
2.2 The SPS Agreement 60
2.2.1 Basic Rights and Obligations 61
2.2.2 Harmonization 62
2.2.3 Equivalence 62
2.2.4 Assessment of Risk and Determination of the Appropriate
Level of Sanitary or Phyto sanitary Protection 62
2.2.5 Adaptation to Regional Conditions 63
2.2.6 Transparency 63
2.2.7 Technical Assistance 63
2.2.8 Special and Differential Treatment 63
2.2.9 Consultations and Dispute Settlement 64
2.2.10 Administration 64
2.3 Food Safety Standards and Quality Regulations in the Import
Markets – the EU, the US and Japan 65
2.3.1 The EU 65
2.3.1.1 Structural and Equipment Requirements 68
2.3.1.2 Requirements for Factory Vessel and Freezer Vessel 68
2.3.1.3 Hygiene on board the fishing vessels, factory vessels
and freezer vessels 69
2.3.1.4 Conditions of hygiene during and after the landing of
fishery products 69
2.3.1.5 Fresh, Frozen and Processed Fishery Products 69
2.3.1.6 Wrapping, packaging, storage and transport of
fishery products 70
2.3.1.7 Other Regulations 70
2.3.1.8 Rapid Alert System for Food and Feed 72
2.3.2 The US 76
2.3.3 Japan 79
Chapter 3
MMaarrkkeett WWiissee EExxppoorrttss ooff MMaarriinnee PPrroodduuccttss ffrroomm IInnddiiaa aanndd
KKeerraallaa –– AA CCoommppaarraattiivvee AAnnaallyyssiiss ooff PPrree aanndd PPoosstt WWTTOO PPhhaasseess 8855 -- 119988
3.1 Marine Product Exports from India in the Pre WTO
Phase – An Empirical Analysis 87
3.2 Marine Product Exports from India in the Post WTO
Phase – An Empirical Analysis 92
3.3 Marine Product Exports from India – A Comparison of
Pre and Post WTO Periods 99
3.4 Impact of Food Safety Standards on the Marine Product
Exports of India – A Gravity Model Analysis 103
3.5 Marine Product Exports from Kerala – A Comparative
Analysis of the Pre and the Post WTO Periods 109
3.6 Market Wise Exports of Marine Products from Kerala in
the Pre and the Post WTO Periods – A Time Series
Analysis 117
3.6.1 Marine Product Exports from Kerala to the EU - A
Comparison of Pre and Post WTO Periods 117
3.6.1.1 Marine Product Exports to the EU – Pre WTO Period 118
3.6.1.2 Marine Product Exports from Kerala to the EU – Post
WTO Phase 122
3.6.2 Marine Product Exports from Kerala to the US - A
Comparison of Pre and Post WTO Periods 136
3.6.2.1 Marine Product Exports from Kerala to the US – Pre
WTO Phase 137
3.6.2.2 Marine Product Exports from Kerala to the US – Post
WTO Phase 142
3.6.3 Marine Product Exports to Japan- A Comparison of
Pre and Post WTO Periods 154
3.6.3.1 Marine Product Exports to Japan – Pre WTO 155
3.6.3.2 Marine Product Exports to Japan – Post WTO period 158
3.7 Marine Product Exports to Newer Markets - A Comparison of
Pre and Post WTO Periods 169
3.7.1 Marine Product Exports to the SEA – A comparison of
Pre WTO and Post WTO Phases 172
3.7.1.1 Marine Product Exports from Kerala to the SEA – Pre
WTO Phase 172
3.7.1.2 Marine Product Exports from Kerala to the SEA –
Post WTO Phase 173
3.7.2 Marine Product Exports to the MEA – A comparison
of Pre WTO and Post WTO Phases 180
3.7.2.1 Marine Products to the MEA – Pre WTO Period 180
3.7.2.2 Marine Product Exports to the MEA- Post WTO
Period 181
3.7.3 Marine Product Exports to ‘Others’ 186
3.7.3.1 Marine Product Exports to ‘Others’ - Pre WTO period 187
3.7.3.2 Marine Product Exports from Kerala to ‘Others’ –
Post WTO phase 188
Chapter 4
IInnssttiittuuttiioonnaall SSuuppppoorrttss ttoo MMaarriinnee PPrroodduucctt EExxppoorrtt SSeeccttoorr iinn IInnddiiaa 119999 -- 222255
4.1 Role of the EIC – An Assessment 200
4.1.1 Consignment-wise Inspection System 200
4.1.2 In-Process Quality Control 201
4.1.3 Food Safety Management Based Certification System
(FSMSC) 201
4.1.4 Monitoring and Control 202
4.1.5 Responsibilities of the Approved Establishments 206
4.1.5.1 General 206
4.1.5.2 Storage and Transportation 207
4.1.5.3 Quality Control 207
4.1.5.4 Organoleptic checks 207
4.1.5.5 Microbiological checks 207
4.1.5.6 Water and Ice 207
4.1.5.7 Residual parameters 208
4.1.5.8 Records 208
4.1.6 Official control by the Competent Authority 208
4.1.6.1 Monitoring by EIA Officials 208
4.1.6.2 The areas of monitoring by the EIA officials 209
4.2 Government of India Financial Support to Marine Product
Export Sector 209
4.2.1 Technology Upgradation Schemes for Marine Products
(TUSMP) 210
4.2.2 Subsidy for acquisition of refrigerated trucks or
containers 211
4.2.3 Financial assistance for setting up large cold storages 211
4.2.4 Subsidized distribution of insulated fish boxes 211
4.2.5 Subsidy for acquisition of generator, setting up of water
purification systems and effluent treatment plants. 211
4.2.6 Subsidy for setting up of new modern ice plant or
renovation of the existing ice plant. 211
4.2.7 Subsidy for setting up mini laboratory. 211
4.2.8 Subsidy for captive pre-processing centre (PPC) and
independent PPC 212
4.2.9 Interest subsidy scheme 212
Chapter 5
TThhee SSPPSS MMeeaassuurreess iinn tthhee IImmppoorrtt MMaarrkkeettss –– RReessppoonnsseess ooff
MMaarriinnee PPrroodduucctt EExxppoorrtt IInndduussttrryy ooff KKeerraallaa 222277 -- 228866
5.1 Marine Product Export Industry of Kerala – An
Overview 229
5.2 A Profile of the Surveyed Units 232
5.3 Responses of the Marine Product Export Industry –
Costs and Benefits 237
Chapter 6
CCoonncclluussiioonn aanndd PPoolliiccyy OOppttiioonnss 228877 -- 229966
6.1 Policy Options 293

BBiibblliiooggrraapphhyy 229977 -- 331100
AAppppeennddiicceess 331111 -- 333388