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An Assessment of Environmentally‐ related Non‐tariff Measures

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  • Lionel Fontagné
  • Friedrich Von Kirchbach
  • Mondher Mimouni

Abstract

International trade can affect the environment in different ways. This may justify the introduction of border measures by the importing countries. In addition to various dispositions in the GATT, GATS, TRIPs agreements, as well as in the Agreement on Agriculture, this issue is regulated by the agreements on Technical Barriers to Trade (TBT) and on the application of Sanitary and Phyto‐sanitary standards (SPS). Despite these rules, abuse of environmental arguments for protectionist reasons remains an open issue. In order to disentangle protectionism from dispositions justified on the grounds of true environmental concerns, we systematically review notifications of SPS and TBTs by importing countries at the tariff line level. Trade is considered as being potentially affected when an environmental SPS/TBT is notified on grounds of environmental concerns. Affected trade is defined as imports by countries notifying such barriers. Protectionist use of environmental barriers is likely when only a limited number of countries impose an environmental obstacle on the imports of a given product. Considering data for 2001, we find that 88 per cent of the value of world trade is in products potentially affected by such measures, while 39 per cent of the value of world imports is potentially subject to a protectionist use of such measures. Agriculture, the automobile industry, the pharmaceutical industry and many other sectors are concerned.

Suggested Citation

  • Lionel Fontagné & Friedrich Von Kirchbach & Mondher Mimouni, 2005. "An Assessment of Environmentally‐ related Non‐tariff Measures," The World Economy, Wiley Blackwell, vol. 28(10), pages 1417-1439, October.
    • Handle: RePEc:bla:worlde:v:28:y:2005:i:10:p:1417-1439
    DOI: 10.1111/j.1467-9701.2005.00742.x
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    1. Fontagné, Lionel & Orefice, Gianluca & Piermartini, Roberta & Rocha, Nadia, 2015. "Product standards and margins of trade: Firm-level evidence," Journal of International Economics, Elsevier, vol. 97(1), pages 29-44.
    2. Lionel Fontagné & Gianluca Orefice & Roberta Piermartini & Nadia Rocha, 2015. "Product Standards and Margins of Trade: Firm-Level Evidence Product Standards and Margins of Trade: Firm-Level Evidence," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01299757, HAL.
    3. Fontagné, Lionel & Orefice, Gianluca, 2018. "Let’s try next door: Technical Barriers to Trade and multi-destination firms," European Economic Review, Elsevier, vol. 101(C), pages 643-663.
    4. Hoda El-Enbaby & Rana Hendy & Chahir Zaki, 2014. "Do Product Standards Matter for Margins of Trade In Egypt? Evidence from Firm-Level Data," Working Papers 840, Economic Research Forum, revised Jun 2014.
    5. Deodhar, Satish Y. & Rastogi, Siddhartha K., 2008. "Indo-US Trade in Wheat and Mango: A Game-Theoretic Approach to SPS Standards," IIMA Working Papers WP2008-03-04, Indian Institute of Management Ahmedabad, Research and Publication Department.
    6. Najla KAMERGI & Gabriel FIGUEIREDO DE OLIVEIRA, 2021. "Les mesures techniques non tarifaires :quels effets sur les exportations agricoles des pays africains ?," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 54, pages 31-50.
    7. Rastogi, Siddhartha, 2010. "Trade Standards for Welfare Maximization: A Case of Indo-US Trade in Wheat and Mango," Conference papers 330246, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. Vickie Siew Hoon Yew & Abul Quasem Al-Amin & Evelyn S. Devadason, 2020. "Labour Market Effects of Non-tariff Measures: A Computable General Equilibrium for the Food Processing Sector in Malaysia," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(3), pages 629-656, September.
    9. Witold Czubala & Ben Shepherd & John S. Wilson, 2009. "Help or Hindrance? The Impact of Harmonised Standards on African Exports †," Journal of African Economies, Centre for the Study of African Economies, vol. 18(5), pages 711-744, November.
    10. Shepherd, Ben, 2015. "Product Standards and Export Diversification," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 30(2), pages 300-333.

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