Evolving US Food Safety Regulations and International Competitors: Implementation Dynamics

Abstract

The 2011 US Food Safety Modernization Act (FSMA) represents a major initiative to improve food safety. The legislation mandates the US Food and Drug Administration (FDA) with developing a regulatory system to implement the Act. Both domestic and foreign firms that wish to supply US consumers with food will face a considerable increase in regulatory costs. Implementation has proved challenging for the FDA leading to delays which increase investment risks for foreign suppliers, particulalry from developing countries. This paper sets out the major FSMA requirements and examines how the regulatory burden may fall on foreign versus US suppliers.