The Role of Risk and Cost-Benefit Analysis in Determining Quarantine Measures

‘The Role of Risk and Cost-Benefit Analysis in Determining Quarantine Measures’ by Monika Binder, was released on 19 February 2002. Quarantine regimes must conform with World Trade Organization (WTO) requirements arising from the completion of the Uruguay Round of Multilateral Trade Negotiations in 1995. A fundamental aspect of those requirements is the need for a science-based approach to setting measures which potentially restrict trade in animals, plants and their products. This approach is commonly described as import risk analysis (IRA). In some quarters, it is argued that a broad economic perspective should be incorporated in IRAs. This paper looks at the WTO requirements and supporting international guidelines, describes in broad terms the existing IRA approach to determining quarantine measures and addresses some options for improvement and associated problems. The views expressed in this paper are those of the staff involved and do not necessarily reflect those of the Productivity Commission.