The influence of codex guidelines on international trade: An analysis focused on Kimchi

Abstract

The global food trade, with an estimated value of approximately USD 2,395 billion in 2022, encounters various obstacles pertaining to consumer health and the preservation of species. To mitigate these, governments enact legislation and regulations, potentially hindering international food trade. The FAO and WHO established the Codex Alimentarius Committee in 1963 with the goal of harmonizing international food standards, guidelines, and moral behavior for consumer health and fair trade. This paper analyzes the economic impact of Codex certification on Kimchi trade in Korea. Before Codex, various non-standardized versions of kimchi were marketed globally. The implementation codex standards serve to mitigate these disparities by establishing a standardized global norm. The examination of multivariate import and export demand functions investigates the impact of the codex on the trade dynamics of kimchi. The findings indicate a notable rise in kimchi exports to Japan and an increase in imports from China, resulting in benefits for multiple nations. The analysis employs regression models with variables like export prices, GDP per capita, financial crisis dummies, and Codex accreditation. Findings show Codex significantly increases Korean Kimchi exports by 7,096 metric tonnes annually and Chinese Kimchi imports by 99,628 metric tonnes yearly. This highlights Codex's potential to foster international trade and enhance consumer trust. In conclusion, Codex standards offer a robust framework for safe international trade while ensuring consumer safety and promoting market growth. The study provides insights into the economic implications of Codex standards for global food trade.