Maximum Residue Limits and Agricultural Trade: Evidence from China

In recent years, maximum residue limit (MRL) standards regulated by governments have become increasingly stringent. MRL standards aim to protect human health and environmental sustainability by setting maximum allowable residue concentrations for chemical substances in imported products. In November 2020, the European Union published EU Regulation 2020/1085, imposing stricter MRL standards on imported agricultural products. As standard-setting leaders implement more restrictive MRLs and export-oriented countries adjust their chemical practices to align with these standards, it is essential to examine the emerging trade patterns associated with MRLs and exports. This paper investigates the impact of maximum residue limits (MRLs) on China’s agricultural exports, using disaggregated product-level data (HS eight-digit) for 237 products across 43 importing countries from 2006 to 2021. The results show that a 10% more stringent MRL at the mean in the previous year leads to a 6.6% decrease in the current-year export values of China’s agricultural products. Stricter MRLs for insecticides significantly reduce China’s agricultural exports, while MRLs for fungicides and herbicides have no significant effect. Additionally, I analyze the top 10 most frequently notified chemical substances in goods from China, as reported by the European Commission’s Rapid Alert System for Food and Feed (RASFF) over 2020–2024. More stringent MRLs for Chlorpyrifos, Diafenthiuron, and Carbendazim significantly impede China’s agricultural exports to the European Union. Conversely, China’s agricultural exports to USMCA, ASEAN, and BRI member countries are sensitive to more restrictive MRLs for Diafenthiuron, while benefiting from tougher MRLs for Tolfenpyrad, Dinotefuran, and Imidacloprid. The impacts of MRLs on the extensive and intensive margins of exports suggest that more restrictive MRLs do not significantly affect the probability of exporting, but they reduce export values conditional on the export decisions. The findings suggest that tightening MRL standards by importing countries do not necessarily impede agricultural trade; in some cases, they facilitate China’s agricultural exports to these markets. This study provides policymakers with a comprehensive analysis to formulate strategies for enhancing agricultural exports and highlights the role of food safety standards in sustainable development.

Authors

Institutions

Publication Details

Journal
Sustainability
Published
2025-04-11
DOI
https://doi.org/10.3390/su17083435
Citations
4
Primary Topic
Energy, Environment, Economic Growth
Type
article
Field-Weighted Citation Impact
12.52
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Maximum Residue Limits and Agricultural Trade: Evidence from China

Siqi Zhang
4 citations
Sustainability
Energy, Environment, Economic Growth
12.52
article

Maximum Residue Limits and Agricultural Trade: Evidence from China

Siqi Zhang
article en
4 citations

Abstract

In recent years, maximum residue limit (MRL) standards regulated by governments have become increasingly stringent. MRL standards aim to protect human health and environmental sustainability by setting maximum allowable residue concentrations for chemical substances in imported products. In November 2020, the European Union published EU Regulation 2020/1085, imposing stricter MRL standards on imported agricultural products. As standard-setting leaders implement more restrictive MRLs and export-oriented countries adjust their chemical practices to align with these standards, it is essential to examine the emerging trade patterns associated with MRLs and exports. This paper investigates the impact of maximum residue limits (MRLs) on China’s agricultural exports, using disaggregated product-level data (HS eight-digit) for 237 products across 43 importing countries from 2006 to 2021. The results show that a 10% more stringent MRL at the mean in the previous year leads to a 6.6% decrease in the current-year export values of China’s agricultural products. Stricter MRLs for insecticides significantly reduce China’s agricultural exports, while MRLs for fungicides and herbicides have no significant effect. Additionally, I analyze the top 10 most frequently notified chemical substances in goods from China, as reported by the European Commission’s Rapid Alert System for Food and Feed (RASFF) over 2020–2024. More stringent MRLs for Chlorpyrifos, Diafenthiuron, and Carbendazim significantly impede China’s agricultural exports to the European Union. Conversely, China’s agricultural exports to USMCA, ASEAN, and BRI member countries are sensitive to more restrictive MRLs for Diafenthiuron, while benefiting from tougher MRLs for Tolfenpyrad, Dinotefuran, and Imidacloprid. The impacts of MRLs on the extensive and intensive margins of exports suggest that more restrictive MRLs do not significantly affect the probability of exporting, but they reduce export values conditional on the export decisions. The findings suggest that tightening MRL standards by importing countries do not necessarily impede agricultural trade; in some cases, they facilitate China’s agricultural exports to these markets. This study provides policymakers with a comprehensive analysis to formulate strategies for enhancing agricultural exports and highlights the role of food safety standards in sustainable development.

SustainabilityVol. 17(8)
Huazhong University of Science and Technology (CN)
Openalex Percentile: Top 2%
Energy, Environment, Economic Growth
12.52
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.