Regulating to Exclude or to Enable: Institution Building and Transnational Standard Adoption in Mexican Food Safety

Abstract

A key challenge for integrating new transnational regulations into a semi-periphery country is creating institutional capacities for effective dissemination and monitoring of the standards and for upgrading a broad base of firms to implement and benefit from them. Instilled by NAFTA, Mexico embraced transnational food value chains, yet the results were rather mixed, as the vast majority of producers cannot implement new standards and participate. New rules and practices are not adopted on a tabula rasa but layered on prior socio-political institutions that are raw materials for new collaboration and blockage. We argue that improvements in both regulatory institutions and firm capabilities are driven by the creation of public–private learning communities, which in turn are shaped by prior institutional legacies at the public–private divide. The ability of producers to undertake organizational experiments with one another and key public actors is greatly constrained by the legacies of corporatism. Refashioned producer associations could initiate with certain local public institutions regulatory and technological upgrading for a limited number of firms, which became gatekeepers for certification.