Analysis The Impact Of Pesticide Maximum Residue Limit Standards On Agricultural Products Imports From China To Indonesia

Maximum Residue Limit(MRLs)standards are one of non-tariff measures in the agricultural product international trade adopted by numerous countries.Overall objective in this study was thus to measure the effect of pesticide Maximum Residue Limit standards and factors on exported agricultural product from China to Indonesia using gravity model.In this study,the author first using Anirudh relatively stringent indexes formula to construct the similarity index to study the degree of similarity of Maximum Residue Limits(MRLs)between Indonesia and China.Annual data for the time 2008-2018 were used in the analysis.The dependent variable in the panel data is fruits and vegetables imported to Indonesia.The independent variable are similarity index,GDP,population,exchange rate and distance.Study of Indonesia and China MRLs has shown that China’s MRLs regulations are stricter than Indonesia and empirical results show that MRLs has a positive correlation with trade.It means increasing stringency of Indonesia’s MRLss could impedes fruit and vegetable import from China,vise versa,if China increase their stringency of MRLs regulation could impedes fruit and vegetable import for Indonesia.In addition,Indonesia and China GDP,Indonesia and China population and distance are statistically significant on fruit import,while on vegetable import China population is not statistically significant to affect vegetable import to Indonesia.Based on these findings,this study suggests that actions,such as should improve the national food safety management system so it can control imported agricultural product not directly to decrease the quantity of imported volume but also to control the quality of agricultural product that imported to Indonesia.