IDEAS home Printed from https://ideas.repec.org/a/vep/journl/y2023v131i1p167-212.html
   My bibliography  Save this article

Salmonella Program in the European Union and the Trade Dispute with Brazil at the World Trade Organisation: a Partial Equilibrium Framework

Author

Listed:
  • Mahdi Ghodsi

    (The Vienna Institute for International Economic Studies, Vienna)

Abstract

This contribution provides a cost-benefit analysis in a partial equilibrium framework to investigate the welfare consequences of a prohibitive regulatory sanitary and phytosanitary (SPS) measure aimed at a foreign product with perceived negative characteristics. Two groups of consumers are distinguished: one that is indifferent to the foreign product’s negative attributes, and another that is concerned about them. Different scenarios concerning the welfare gains from the introduction of an NTM are explored. The welfare implications depend on consumer awareness and information policies pursued by the imposing government. The theoretical model is illustrated with data on the production and importation of prepared poultry in the EU. This paper focusses on the recent Dispute Settlement (DS) case 607 at the World Trade Organization (WTO) that was initiated by Brazil in November 2021 to consult with the EU on restrictive SPS measures imposed on the importation of prepared and preserved poultry.

Suggested Citation

  • Mahdi Ghodsi, 2023. "Salmonella Program in the European Union and the Trade Dispute with Brazil at the World Trade Organisation: a Partial Equilibrium Framework," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 131(1), pages 167-212.
    • Handle: RePEc:vep:journl:y:2023:v:131:i:1:p:167-212
    as

    Download full text from publisher

    File URL: https://riss.vitaepensiero.it/scheda-articolo_digital/mahdi-ghodsi/salmonella-program-in-the-european-union-and-the-tradedispute-with-brazil-at-the-world-trade-organisationa-partial-equilibrium-framework-00518_2023_0001_0167-395243.html
    Download Restriction: Yes
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Gründler, Klaus & Hillman, Arye L., 2021. "Ambiguous protection," European Journal of Political Economy, Elsevier, vol. 68(C).
    2. 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), pages 1-7.
    3. Curzi, Daniele & Schuster, Monica & Maertens, Miet & Olper, Alessandro, 2020. "Standards, trade margins and product quality: Firm-level evidence from Peru," Food Policy, Elsevier, vol. 91(C).
    4. S. A. Baba, 1997. "Democracies and Inefficiency," Economics and Politics, Wiley Blackwell, vol. 9(2), pages 99-114, July.
    5. Niven Winchester & Marie-Luise Rau & Christian Goetz & Bruno Larue & Tsunehiro Otsuki & Karl Shutes & Christine Wieck & Heloisa L. Burnquist & Maurício J. Pinto de Souza & Rosane Nunes de Faria, 2012. "The Impact of Regulatory Heterogeneity on Agri-food Trade," The World Economy, Wiley Blackwell, vol. 35(8), pages 973-993, August.
    6. Frank van Tongeren & John Beghin & Stéphane Marette, 2009. "A Cost-Benefit Framework for the Assessment of Non-Tariff Measures in Agro-Food Trade," OECD Food, Agriculture and Fisheries Papers 21, OECD Publishing.
    7. Mahdi Ghodsi, 2021. "Exploring ‘Non-Tariff Measures Black Box’: Whose Regulative NTMs on Which Products Improve the Imported Quality?," wiiw Working Papers 195, The Vienna Institute for International Economic Studies, wiiw.
    8. Kono, Daniel Y., 2006. "Optimal Obfuscation: Democracy and Trade Policy Transparency," American Political Science Review, Cambridge University Press, vol. 100(3), pages 369-384, August.
    9. John Beghin & Anne-Célia Disdier & Stéphan Marette & Frank Van Tongeren, 2017. "Welfare costs and benefits of non-tariff measures in trade: a conceptual framework and application," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 7, pages 119-138, World Scientific Publishing Co. Pte. Ltd..
    10. Mahdi Ghodsi & Jan Jakub Michalek, 2016. "Technical Barriers To Trade Notifications And Dispute Settlement Within The Wto," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 11(2), pages 219-249, June.
    11. Xiaohua Bao & Larry D. Qiu, 2012. "How Do Technical Barriers to Trade Influence Trade?," Review of International Economics, Wiley Blackwell, vol. 20(4), pages 691-706, September.
    12. Brander, James A. & Spencer, Barbara J., 1985. "Export subsidies and international market share rivalry," Journal of International Economics, Elsevier, vol. 18(1-2), pages 83-100, February.
    13. Xiaohua Bao & Larry D. Qiu, 2010. "Do Technical Barriers to Trade Promote or Restrict Trade? Evidence from China," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 17(3), pages 253-278.
    14. Philip L. Paarlberg & John G. Lee, 1998. "Import Restrictions in the Presence of a Health Risk: An Illustration Using FMD," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 175-183.
    15. Dela-Dem Doe Fiankor & Daniele Curzi & Alessandro Olper, 2021. "Trade, price and quality upgrading effects of agri-food standards [Endogenous Trade Policy with Heterogeneous Firms]," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 48(4), pages 835-877.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Payam Elhami & Mahdi Ghodsi & Robert Stehrer, 2021. "Quality of Goods Imports: Which Role for Non-tariff Measures?," wiiw Policy Notes 46, The Vienna Institute for International Economic Studies, wiiw.
    2. Mahdi Ghodsi, 2015. "Distinguishing Between Genuine and Non-Genuine Reasons for Imposing Technical Barriers to Trade: A Proposal Based on Cost-Benefit Analysis," wiiw Working Papers 117, The Vienna Institute for International Economic Studies, wiiw.
    3. Annalisa Zezza & Federica Demaria & Maria Rosaria Pupo d'Andrea & Jo Swinnen & Giulia Meloni & Senne Vandevelde & Alessandro Olper & Daniele Curzi & Valentina Raimondi & Sophie Drogue, 2018. "Research for AGRI Committee - Agricultural trade: assessing reciprocity of standards," Working Papers hal-02787948, HAL.
    4. José Manuel Álvarez Zárate (Editor), 2016. "¿Hacia dónde va América Latina respecto al derecho económico internacional?," Books, Universidad Externado de Colombia, Facultad de Derecho, number 860, October.
    5. Maria Cipollina & Federica Demaria, 2020. "The Trade Effect of the EU’s Preference Margins and Non-Tariff Barriers," JRFM, MDPI, vol. 13(9), pages 1-20, September.
    6. Ghodsi, Mahdi, 2020. "How do technical barriers to trade affect foreign direct investment? Tariff jumping versus regulation haven hypotheses," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 269-278.
    7. Boza, Sofía, 2013. "Assessing the impact of sanitary, phytosanitary and technical requirements on food and agricultural trade: what does current research tell us?," Papers 926, World Trade Institute.
    8. Adrián Rabadán & Ángela Triguero, 2021. "Influence of food safety standards on trade: Evidence from the pistachio sector," Agribusiness, John Wiley & Sons, Ltd., vol. 37(3), pages 489-514, July.
    9. M. Mahdi Ghodsi, 2013. "Welfare Analysis of a Prohibitive NTM in a Society with a Proportion of Concerned Consumers," Working Papers 2013-12, Faculty of Economic Sciences, University of Warsaw.
    10. M. Mahdi Ghodsi, 2018. "Determinants of specific trade concerns raised on technical barriers to trade EU versus non-EU," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 45(1), pages 83-128, February.
    11. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 2, pages 13-38 World Scientific Publishing Co. Pte. Ltd..
    12. John C. Beghin & Miet Maertens & Johan Swinnen, 2017. "Nontariff Measures and Standards in Trade and Global Value Chains," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 2, pages 13-38, World Scientific Publishing Co. Pte. Ltd..
    13. Yuan Li & John C. Beghin, 2017. "Protectionism indices for non-tariff measures: An application to maximum residue levels," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 10, pages 167-178, World Scientific Publishing Co. Pte. Ltd..
    14. Michael Bratt, 2017. "Estimating the bilateral impact of nontariff measures on trade," Review of International Economics, Wiley Blackwell, vol. 25(5), pages 1105-1129, November.
    15. Jacob Wood & Jie Wu & Yilin Li & Jungsuk Kim, 2017. "TBT and SPS impacts on Korean exports to China: empirical analysis using the PPML method," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 31(2), pages 96-114, November.
    16. Vural, Burçak Müge & Akgüngör, E. Sedef, 2019. "Quantifying the Trade and Welfare Effects of EU Aflatoxin Regulations on the Dried Fruit Industry," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 68(2), June.
    17. Bossoma Doriane N’DOUA, 2022. "The Impact of Technical Barriers to Trade and Sanitary and Phytosanitary Measures on Trade in the Forest-Wood-Paper Sector," Bordeaux Economics Working Papers 2022-01, Bordeaux School of Economics (BSE).
    18. Shuyao Yang, 2020. "Technical Barriers to Trade and Firms' Export Decisions," CESifo Working Paper Series 8693, CESifo.
    19. Hea‐Jung Hyun & Yong Joon Jang, 2022. "Technical regulation and trade: Export quality matters," The World Economy, Wiley Blackwell, vol. 45(5), pages 1447-1476, May.
    20. Mahdi Ghodsi, 2018. "The Impact of Chinese Technical Barriers to Trade on its Manufacturing Imports," wiiw Working Papers 146, The Vienna Institute for International Economic Studies, wiiw.

    More about this item

    Keywords

    Welfare; Trade Policy; Non-tariff Measures; Technical Barriers to Trade; Dispute Settlement;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vep:journl:y:2023:v:131:i:1:p:167-212. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Vep - Vita e Pensiero (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.