The field imposes the significant emphasis on rigorous conceptual development and analysis (Thomas p. 217 232). Further, it significantly emphasizes on empirical evidence presented that is particularly relevant to the policy process. In this paper, I seek to critically analyze the aspects of the economics of policy and law, while assessing its regulatory intervention in ensuring food safety in Canada, as well as protecting Canada’s public health. This study will basically be done in connection with the obligations of the Canadian Food Inspection Agency (CFIA) whose priority is to maintain food supply safety. In so doing, the paper will analyze all relevant concepts of the economics of law and policy, including externality, market failure, and government failure (Gillian et all p. 131-169). Law and economics are foundational to any production. Basically, we have positive and normative law and economics which highly govern production. Positive law and economics use economic analysis to predict the effects of various legal rules. For instance, the analysis of the law of tort would predict the results of the strict liability rule contrary to the results of a negligence rule. On the other hand, normative and economics use economic analysis to make policy recommendations based on the economic results of various policies, the key concept for normative economic analysis being efficiency. In every dimension, standardization of consumer foods is essential to human life. In other words, it is important that before chemical foods are distributed to people for consumption first they must undergo inspection to be proven that they are harmless for use.