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Protectionism indices for non-tariff measures: An application to maximum residue levels

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  • Li, Yuan
  • Beghin, John C.

Abstract

We propose aggregation indices of Non-Tariff Measures (NTMs) to quantify their protectionism relative to international standards of stringency. We apply the indices to national Maximum Residue Limit (MRL) regulations on pesticides and veterinary drugs affecting agricultural and food trade and using a science-based criteria embodied in Codex Alimentarius international standards. The approach links two streams of the NTM literature, one concerned with the aggregation of various NTMs into operational indices for econometric and modeling purposes, and the other attempting to evaluate the protectionism of NTMs. The data used in the application come from a large international dataset on veterinary and pesticide MRLs and CODEX MRL standards for a large set of countries.

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Bibliographic Info

Article provided by Elsevier in its journal Food Policy.

Volume (Year): 45 (2014)
Issue (Month): C ()
Pages: 57-68

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Handle: RePEc:eee:jfpoli:v:45:y:2014:i:c:p:57-68

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Web page: http://www.elsevier.com/locate/foodpol

Related research

Keywords: NTMs; Non-tariff measures; Barriers; Protectionism; Maximum residue limit; MRL;

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  1. Fischer, Ronald & Serra, Pablo, 2000. "Standards and protection," Journal of International Economics, Elsevier, vol. 52(2), pages 377-400, December.
  2. Trefler, Daniel, 1993. "Trade Liberalization and the Theory of Endogenous Protection: An Econometric Study of U.S. Import Policy," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 101(1), pages 138-60, February.
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  4. Anne-Célia Disdier & Stéphan Marette, 2010. "The Combination of Gravity and Welfare Approaches for Evaluating Nontariff Measures," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 92(3), pages 713-726.
  5. Beghin, John C. & Disdier, Anne-Celia & Marette, Stephan & van Tongeren, Frank, 2011. "Measuring Costs And Benefits Of Non-Tariff Measures In Agri-Food Trade," Staff General Research Papers 32393, Iowa State University, Department of Economics.
  6. Xiong, Bo & Beghin, John C., 2011. "Does European Aflatoxin Regulation Hurt Groundnut Exporters from Africa?," Staff General Research Papers 34936, Iowa State University, Department of Economics.
  7. Wilson, John S. & Otsuki, Tsunehiro, 2004. "To spray or not to spray: pesticides, banana exports, and food safety," Food Policy, Elsevier, Elsevier, vol. 29(2), pages 131-146, April.
  8. Marette, Stephan & Beghin, John C., 2010. "Are Standards Always Protectionist?," Staff General Research Papers 12826, Iowa State University, Department of Economics.
  9. Achterbosch, Thom J. & Engler, Alejandra & Rau, Marie-Luise & Toledo, Roger, 2009. "Measure the measure: the impact of differences in pesticide MRLs on Chilean fruit exports to the EU," 2009 Conference, August 16-22, 2009, Beijing, China, International Association of Agricultural Economists 51765, International Association of Agricultural Economists.
  10. Li, Yuan & Beghin, John C., 2010. "A Meta-Analysis of Estimates of the Impact of Technical Barriers to Trade," Staff General Research Papers 31968, Iowa State University, Department of Economics.
  11. Carrère, Céline & De Melo, Jaime, 2011. "Non-Tariff Measures: What Do We Know, What Might Be Done?," Journal of Economic Integration, Center for Economic Integration, Sejong University, Center for Economic Integration, Sejong University, vol. 26, pages 169-196.
  12. Disdier, Anne-Celia & Fontagne, Lionel & Mimouni, Mondher, 2008. "AJAE Appendix: The Impact of Regulations on Agricultural Trade: Evidence from the SPS and TBT Agreements," American Journal of Agricultural Economics Appendices, Agricultural and Applied Economics Association, vol. 90(2), May.
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  14. Katia Berti & Rod Falvey, . "Does Trade Weaken product Quality Standards?," Discussion Papers 11/24, University of Nottingham, GEP.
  15. Drogue, Sophie & DeMaria, Federica, 2011. "Pesticides Residues and Trade: the Apple of Discord?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland, European Association of Agricultural Economists 114445, European Association of Agricultural Economists.
  16. Disdier, Anne-Celia & van Tongeren, Frank W., 2009. "Non-Tariff Measures in Agri-Food Trade: What Does the Data Tell Us? Evidence from a Cluster Analysis on OECD Imports," 2009 Conference, August 16-22, 2009, Beijing, China, International Association of Agricultural Economists 51759, International Association of Agricultural Economists.
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Cited by:
  1. DeMaria, F. & Drogué, S., 2013. "EU trade regulation for baby food: protecting health or trade?," Working Papers MOISA 201305, UMR MOISA : Marchés, Organisations, Institutions et Stratégies d'Acteurs : CIHEAM-IAMM, CIRAD, INRA, Montpellier SupAgro, IRD - Montpellier, France.
  2. Bo Xiong & John C. Beghin, 2013. "Disentangling Demand-Enhancing and Trade-Cost Effects of Maximum Residue Regulations," Food and Agricultural Policy Research Institute (FAPRI) Publications 13-wp544, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
  3. Xiong, Bo & Beghin, John C., 2012. "Stringent Maximum Residue Limits, Protectionism, and Competitiveness: The Cases of the US and Canada," Working Papers 142384, International Agricultural Trade Research Consortium.
  4. Ferro, Esteban & Wilson, John S. & Otsuki, Tsunehiro, 2013. "The effect of product standards on agricultural exports from developing countries," Policy Research Working Paper Series 6518, The World Bank.
  5. Li, Yuan & Xiong, Bo & Beghin, John C., 2013. "The Political Economy Of Food Standard Determination: International Evidence From Maximum Residue Limits," Staff General Research Papers 36181, Iowa State University, Department of Economics.
  6. Ferrier, Peyton, 2014. "The Effects of Phytosanitary Regulations on U.S. Imports of Fresh Fruits and Vegetables," Economic Research Report 176199, United States Department of Agriculture, Economic Research Service.

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