Key Details
The ADB report argues that food safety and biosecurity standards are becoming as important as tariffs in determining access to agricultural export markets, particularly for smallholder producers in developing economies.
Theme | Key Finding | Why It Matters |
|---|---|---|
Trade Policy Shift | SPS measures increasingly shape market access as tariffs decline | Food safety compliance is becoming a major determinant of export competitiveness |
Major Asian Reporters | India, China, Thailand and Kazakhstan are active SPS notification issuers | Developing countries are increasingly participating in global food governance |
Smallholder Challenge | Compliance costs disproportionately affect small farmers and agri-SMEs | Risk of exclusion from high-value export markets |
Border Rejections | Export consignments often face refusals due to testing and certification gaps | Weak compliance infrastructure directly affects trade volumes |
Successful Intervention | WTO-STDF projects helped smallholders meet export standards | Capacity building can improve market access |
India Case Study | Research from the Indo-Gangetic Plains highlights the role of cooperatives, credit and certification systems | Collective action lowers compliance costs for small producers |
Policy Direction | Regional cooperation, harmonisation and shared infrastructure recommended | Can reduce trade frictions while maintaining safety standards |
Summary
Food Safety Standards Are Becoming the New Trade Gatekeepers
The Asian Development Bank’s report Sanitary and Phytosanitary Measures in a Developing Asian Context: Toward Regional Cooperation and Capacity Building identifies a major structural shift in global agricultural trade. As traditional import tariffs have gradually declined, Sanitary and Phytosanitary (SPS) measures—covering food safety, animal health, and plant health standards—have emerged as increasingly important determinants of market access.
While these measures are designed to protect consumers, livestock, crops, and ecosystems, they also function as significant non-tariff barriers. The report argues that the ability to comply with SPS requirements is now becoming a key factor shaping export competitiveness across agricultural value chains.
Compliance Costs Are Creating New Divides Within Agricultural Markets
The study finds that large agribusinesses are generally better positioned to absorb the costs associated with testing, certification, traceability systems, and regulatory compliance.
By contrast, smallholder farmers and agricultural SMEs often face significant financial and technical barriers when attempting to meet stringent SPS requirements. As a result, tighter food safety standards can contribute to the fragmentation of local value chains, where larger firms gain access to premium export markets while smaller producers struggle to participate.
The report notes that exporters from developing economies frequently encounter border refusals and trade disruptions because of inadequate laboratory infrastructure, limited testing capacity, and difficulties demonstrating compliance with pesticide residue and food safety standards demanded by importing countries.
Developing Asia Is Becoming More Active in Global SPS Governance
ADB highlights that several developing Asian economies—including India, China, Thailand, and Kazakhstan—have increasingly transitioned from being passive recipients of food safety requirements to active participants in global SPS governance through the notification and reporting of domestic SPS measures.
This shift reflects deeper integration into international agricultural trade systems and growing recognition that regulatory capacity is becoming an important component of export competitiveness.
India’s Experience Highlights the Importance of Cooperatives and Certification Systems
A notable feature of the report is its examination of smallholder dairy farmers in India’s Indo-Gangetic Plains. The analysis finds that access to agricultural cooperatives, affordable rural credit, certification support, and digital compliance systems can significantly reduce the costs of meeting SPS requirements.
The report argues that collective approaches help small producers achieve economies of scale in testing, certification, and traceability, allowing them to participate in higher-value domestic and export markets that would otherwise remain inaccessible.
Regional Cooperation Can Reduce Compliance Burdens
Drawing lessons from regional experiences, including the European Union, ASEAN, and the Eurasian Economic Union, the report recommends a phased approach to SPS cooperation rather than immediate regulatory standardisation.
Key recommendations include:
Greater harmonisation of SPS regulations with international standards.
Investment in laboratory and testing infrastructure.
Expansion of digital certification and traceability systems.
Support for cooperative-based compliance models.
Capacity-building programmes targeted at smallholders and agri-SMEs.
The report points to successful interventions such as WTO Standards and Trade Development Facility (STDF) projects, which helped smallholder farmers in Southeast Asia meet export requirements and access premium international markets.
What is a Sanitary and Phytosanitary (SPS) Measure?
A Sanitary and Phytosanitary (SPS) measure is a regulatory requirement designed to protect human, animal, and plant health from risks such as food-borne diseases, pests, contaminants, and invasive species. Governed internationally under the WTO SPS Agreement, these measures include pesticide residue limits, quarantine procedures, food safety inspections, and disease-control requirements.
Compliance with SPS standards is often a prerequisite for agricultural exports. Failure to meet these requirements can result in shipment rejections, import restrictions, or loss of market access.
Policy Relevance
Protects Agricultural Export Competitiveness: Compliance with SPS standards is increasingly essential for maintaining access to premium global markets.
Supports Smallholder Inclusion: Cooperatives, certification support, and rural credit can help small producers overcome compliance barriers and participate in export value chains.
Strengthens Food Safety Infrastructure: Investments in laboratories, testing facilities, and traceability systems can reduce costly border rejections.
Improves Agricultural Value Chain Integration: Better compliance systems enable farmers and agri-SMEs to connect with higher-value domestic and international markets.
Advances Regional Trade Cooperation: Harmonisation of SPS standards and mutual recognition mechanisms can lower trade costs while maintaining food safety and biosecurity protections.
Follow the Full Report Here: Sanitary and Phytosanitary Measures in a Developing Asian Context: Toward Regional Cooperation and Capacity Building