Trade Standards Compliance in Asia

IDE Research Bulletin


March 2016

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In this research project, development of global food supply chains is examined in the era when public food safety regulations as well as private standards are becoming stricter around the world. Three interrelated research was conducted. The first one examines the determinants of foreign suppliers of agriculture and food products by the Japanese importers using a unique survey of firms in Japan. The results indicate that Japanese firms select foreign suppliers mainly through the existing reputation of the suppliers as well as auditing by importing firms themselves. The second research assesses the tea industry in China and Taiwan. In both economies, tea leaves production is mainly done by smallholder famers. If these industries are going to be integrated into the global market, there might be significant changes needed in the production system of tea in these economies. The last research examines the factors associated with the success of shrimp industry in Thailand and differences in the perceptions of private standards in two cities in Vietnam: Hanoi and Ho Chi Minh City. The research shows that the shrimp industry in Thailand was able to withstand a number of difficulties because of the technological cooperation along the supply chain. In Vietnam, consumers in Ho Chi Minh City are more likely to value products certified with private standards compared to those in Hanoi. This indicates a need that promotion of private standards must take into account of difference in preferences of consumers in various cities.