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Non-tariff Barriers to Trade Caused by SPS Measures and Customs Procedures with Product Quality Changes

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Author Info

  • Liu, Lan
  • Yue, Chengyan

Abstract

This study develops a methodology to quantify the combined effects of two major nontariff barriers (NTBs), sanitary and phytosanitary (SPS) measures and customs and administrative procedures. We employ a constant elasticity of substitution (CES) utility function with factor-augmenting technical progress to incorporate changes in the quality of goods. We then estimate the effects of these two NTBs in the Japanese cut flower market. Results show that estimates of SPS are biased without considering product quality changes caused by the customs and administrative procedures for highly perishable agricultural products. If these Japanese NTBs were removed, findings suggest there would be a significant increase in cut flower imports by Japan.

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File URL: http://purl.umn.edu/50087
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Bibliographic Info

Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

Volume (Year): 34 (2009)
Issue (Month): 1 (April)
Pages:

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Handle: RePEc:ags:jlaare:50087

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Web page: http://waeaonline.org/
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Related research

Keywords: customs and administrative procedures; cut flowers; Japan; non-tariff barriers; sanitary and phytosanitary measures; technical barriers to trade; trade; International Relations/Trade;

References

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  1. Flam, Harry & Helpman, Elhanan, 1987. "Vertical Product Differentiation and North-South Trade," American Economic Review, American Economic Association, vol. 77(5), pages 810-22, December.
  2. Steen, Marie, 2006. "Flower Power at the Dutch Flower Auctions? Application of an Inverse Almost Ideal Demand System," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25441, International Association of Agricultural Economists.
  3. Bureau, Jean-Christophe & Marette, Stephan & Schiavina, Alessandra, 1998. "Non-tariff Trade Barriers and Consumers' Information: The Case of the EU-US Trade Dispute over Beef," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 25(4), pages 437-62.
  4. John C. Beghin & Jean-Christophe Bureau, 2001. "Quantitative Policy Analysis of Sanitary, Phytosanitary and Technical Barriers to Trade," Economie Internationale, CEPII research center, issue 87, pages 107-130.
  5. Barrett, Christopher B. & Li, Jau-Rong & Bailey, DeeVon, 2000. "Factor And Product Market Tradability And Equilibrium In Pacific Rim Pork Industries," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(01), July.
  6. Roberts, Donna & Josling, Timothy E. & Orden, David, 1999. "A Framework for Analyzing Technical Trade Barriers in Agricultural Markets," Technical Bulletins 33560, United States Department of Agriculture, Economic Research Service.
  7. Beghin, John C., 2006. "Nontariff Barriers," Staff General Research Papers 12703, Iowa State University, Department of Economics.
  8. Calvin, Linda & Krissoff, Barry, 1998. "Technical Barriers To Trade: A Case Study Of Phytosanitary Barriers And U.S. - Japanese Apple Trade," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(02), December.
  9. Norbert Wilson, 2007. "Examining the Trade Effect of Certain Customs and Administrative Procedures," OECD Trade Policy Papers 42, OECD Publishing.
  10. Hildegunn Kyvik Nordås & Enrico Pinali & Massimo Geloso Grosso, 2006. "Logistics and Time as a Trade Barrier," OECD Trade Policy Papers 35, OECD Publishing.
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Citations

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Cited by:
  1. Rickard, Bradley J. & Lei, Lei, 2010. "How important are sanitary and phytosanitary barriers in international markets for fresh fruit?," Working Papers 126974, Cornell University, Department of Applied Economics and Management.
  2. Xiong, Bo & Beghin, John C., 2013. "Disentangling Demand-Enhancing And Trade-Cost Effects Of Maximum Residue Regulations," Staff General Research Papers 34393, Iowa State University, Department of Economics.
  3. Lawley, Chad, 2013. "Protectionism versus risk in screening for invasive species," Journal of Environmental Economics and Management, Elsevier, vol. 65(3), pages 438-451.
  4. Xiong, Bo & Beghin, John C., 2011. "Disentangling the Demand-enhancing Effect and Trade-cost Effect of Technical Measures in Agricultural Trade among OECD countries," Proceedings Issues, 2011: Agricultural Price Volatility, Trade Policy and Food Security in Developing Countries, December 2011, St. Petersburg, FL 116898, International Agricultural Trade Research Consortium.

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