The Impact of Food Safety Standard on Indonesia's Coffee Exports

Stringent regulation on food safety standard may arise from particular importers, country specific bodies and world standard organization. The effects on trades are complex due to lack of harmonization in standards. This paper examines how country specific regulations affect on trade in comparison to world-wide complied regulation on food safety standard. Exploring panel data on Indonesia's coffee trades to 10 major importing countries from 2002-2011 using gravity model, our results suggest that, although GDP and Production variables are still important factors, regulation on Ochratoxin which is complied by most importing countries has a significant impacts on Indonesia's coffee trades in comparison to country specific regulations, in this case Carbaryl implied by Japan. Additionally, country specific effect on trades can be minimized by bilateral negotiation.