Pesticide Residue Control and the Role of Regulatory Cooperation: Evidence From Fruit Exports in Southeast Asia

Sanitary and phytosanitary (SPS) measures are the predominant nontariff measures for agricultural products. In response to safety concerns, governments and international bodies have set maximum residue limits (MRLs) for pesticide residues on agricultural products. However, variation in standards across countries creates obstacles to agricultural trade. This study explores how the regulatory heterogeneity of MRLs and regulatory cooperation affect fruit exports from Southeast Asia. The findings indicate that regulatory heterogeneity generally hinders fruit exports from Southeast Asia, with the effects varying across major markets. The regulatory heterogeneity restricts fruit exports to South Korea but seldom affects exports to Australia, China, and Japan. Furthermore, the negative impact of regulatory heterogeneity can be partially mitigated through regulatory cooperation under the regional trade agreement framework while maintaining required safety standards, highlighting the importance of regulatory cooperation.