Assessing the effect of the Round Table on Responsible Soy certification on soybean exports

Abstract

To minimise the negative ecological effects of soybean production, multi‐stakeholders along the global soybean supply chain collaborated to develop, implement and verify a global certification standard called the Round Table on Responsible Soy (RTRS). RTRS certification is almost a quasi‐mandatory sustainability standard; however, its potential trade effects remain poorly understood. Using a structural gravity model that exploits country variations in RTRS‐certified production volumes and certified land areas, we assess the effect of RTRS certification on soybean trade flows. We show that RTRS certification reduces trade flows, especially exports to non‐OECD countries. In essence, developing countries experience lower imports in response to standards than do developed countries. Thus, reconciling international trade with environmental sustainability goals remains a challenge.