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Measure the measure: the impact of differences in pesticide MRLs on Chilean fruit exports to the EU

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  • Achterbosch, Thom J.
  • Engler, Alejandra
  • Rau, Marie-Luise
  • Toledo, Roger

Abstract

This paper advances the measurement of nontariff measures (NTMs) by discussing a framework for how to compare regulations. We argue that relative differences in SPS regulations trigger the impact on trade flows between trading partner countries and specifically look at maximum residue levels (MRLs) for pesticides in a case study on Chilean fruit exports to the EU. In order to capture the relative differences and stringency in tolerance levels of trading partners, a simple indicator is constructed and applied in an econometric analysis. In comparison to existing indices of regulatory heterogeneity, the depth of information generated by our indicator severely compromises its coverage. Further development of our heterogeneity index will need to aim at including elements of process standards and conformity assessment procedures.

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File URL: http://purl.umn.edu/51765
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Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 51765.

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Date of creation: Aug 2009
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Handle: RePEc:ags:iaae09:51765

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Related research

Keywords: regulatory differences; index for pesticide MRLs; agri-food trade; econometric analysis; Agricultural and Food Policy; International Relations/Trade; Q17; F19; C23;

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References

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  1. Kenen, Peter B & Rodrik, Dani, 1986. "Measuring and Analyzing the Effects of Short-term Volatility in Real Exchange Rates," The Review of Economics and Statistics, MIT Press, vol. 68(2), pages 311-15, May.
  2. Jane Korinek & Mark Melatos & Marie-Luise Rau, 2008. "A Review of Methods for Quantifying the Trade Effects of Standards in the Agri-Food Sector," OECD Trade Policy Papers 79, OECD Publishing.
  3. Henk Kox & Arjan Lejour, 2005. "Regulatory heterogeneity as obstacle for international services trade," CPB Discussion Paper 49, CPB Netherlands Bureau for Economic Policy Analysis.
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Cited by:
  1. Li, Yuan & Beghin, John C., 2014. "Protectionism indices for non-tariff measures: An application to maximum residue levels," Food Policy, Elsevier, vol. 45(C), pages 57-68.
  2. 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.
  3. Burnquist, Heloisa Lee & Souza, Mauricio Jorge Pinto de & Faria, Rosane Nunes de & Rau, Marie-Luise & Shutes, Karl, 2012. "A Systematic Approach to Regulatory Heterogeneity Applied to EU Agri-Food Trade," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126470, International Association of Agricultural Economists.

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