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The Impact of Regulations on Agricultural Trade: Evidence from SPS and TBT Agreements

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  • Anne-Célia Disdier
  • Lionel Fontagné
  • Mondher Mimouni

Abstract

The paper provides an analysis of the structure and the importance of SPS and TBT measures in agricultural trade and tries to identify the division between genuine protection of consumers, flora and fauna and non tariff barriers. The paper covers all notifying countries and products at the HS6 digit level. The gravity equation controls for the bilateral applied tariff protection and uses ad-valorem equivalents of SPS and TBT measures. Results suggest that these measures have on the whole a negative mpact on OECD imports. OECD exporters are not significantly affcted by SPS and TBTs in their exports to other OECD countries while developing and least developed countries' exports are negatively and significantly affected.

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Bibliographic Info

Paper provided by CEPII research center in its series Working Papers with number 2007-04.

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Date of creation: Feb 2007
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Handle: RePEc:cii:cepidt:2007-04

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Keywords: Agriculture; SPS; NTB; ad valorem equivalents; Protection; Market access; International trade;

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References

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  1. Leamer, Edward E., 1990. "Latin America as a target of trade barriers erected by the major developed countries in 1983," Journal of Development Economics, Elsevier, vol. 32(2), pages 337-368, April.
  2. Stephen Redding & Anthony J. Venables, 2001. "Economic Geography and International Inequality," CEP Discussion Papers dp0495, Centre for Economic Performance, LSE.
  3. Beghin, John C. & Bureau, Jean-Christophe, 2005. "Quantitative Policy Analysis of Sanitary, Phytosanitary and Technical Barriers to Trade," Staff General Research Papers 12740, Iowa State University, Department of Economics.
  4. Scott Bradford, 2003. "Paying the Price: Final Goods Protection in OECD Countries," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 24-37, February.
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  6. Tsunehiro Otsuki & John S. Wilson, 2001. "What price precaution? European harmonisation of aflatoxin regulations and African groundnut exports," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 28(3), pages 263-284, October.
  7. Harrigan, James, 1993. "OECD imports and trade barriers in 1983," Journal of International Economics, Elsevier, vol. 35(1-2), pages 91-111, August.
  8. Chengyan Yue & John Beghin & Helen H. Jensen, 2006. "Tariff Equivalent of Technical Barriers to Trade with Imperfect Substitution and Trade Costs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 88(4), pages 947-960.
  9. Maria Cipollina & Luca Salvatici, 2008. "Measuring Protection: Mission Impossible?," Journal of Economic Surveys, Wiley Blackwell, vol. 22(3), pages 577-616, 07.
  10. Antoine Bouët & Yvan Decreux & Lionel Fontagné & Sébastien Jean & David Laborde, 2004. "A Consistent, Ad-Valorem Equivalent Measure of Applied Protection Across the World: The MAcMap-HS6 Database," Working Papers 2004-22, CEPII research center.
  11. Andriamananjara, Soamiely & Dean, Judith M. & Feinberg, Robert & Ferrantino, Michael J. & Ludema, Rodney & Tsigas, Marinos E., 2004. "The Effects of Non-Tariff Measures on Prices, Trade, and Welfare: CGE Implementation of Policy-Based Price Comparisons," Working Papers, United States International Trade Commission, Office of Economics 15863, United States International Trade Commission, Office of Economics.
  12. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-59, December.
  13. Hiau LooiKee & Alessandro Nicita & Marcelo Olarreaga, 2009. "Estimating Trade Restrictiveness Indices," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 119(534), pages 172-199, 01.
  14. Timothy E. Josling & Donna Roberts & David Orden, 2004. "Food Regulation and Trade: Toward a Safe and Open Global System," Peterson Institute Press: All Books, Peterson Institute for International Economics, Peterson Institute for International Economics, number 347, July.
  15. Dean Judith M & Signoret José E & Feinberg Robert M. & Ludema Rodney D. & Ferrantino Michael J, 2009. "Estimating the Price Effects of Non-Tariff Barriers," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-41, March.
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Citations

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Cited by:
  1. Festus Ebo Turkson, . "Logistics and Bilateral Exports in Developing Countries: A Multiplicative Form Estimation of the Logistics Augmented Gravity Equation," Discussion Papers 11/06, University of Nottingham, CREDIT.
  2. Okumu, Luke & Nyankori, James Cyprian Okuk, 2010. "Non-tariff barriers in EAC customs union: implications for trade between Uganda and other EAC countries," Research Series, Economic Policy Research Centre (EPRC) 113621, Economic Policy Research Centre (EPRC).
  3. Disdier, Anne-Célia & Marette, Stéphan, 2010. "The Combination of Gravity and Welfare Approaches for Evaluating Non-Tariff Measures," CEPREMAP Working Papers (Docweb) 1004, CEPREMAP.
  4. van Tongeren, Frank & Beghin, John C. & Marette, Stephan, 2009. "A Cost-Benefit Framework for the Assessment of Non-Tariff Measures in Agro-Food Trade," Staff General Research Papers 13146, Iowa State University, Department of Economics.
  5. Carrère, Céline & de Melo, Jaime, 2011. "Notes on Detecting The Effects of Non Tariff Measures," Journal of Economic Integration, Center for Economic Integration, Sejong University, Center for Economic Integration, Sejong University, vol. 26, pages 136-168.
  6. Mélise Jaud & Olivier Cadot & Akiko Suwa-Eisenmann, 2009. "Do food scares explain supplier concentration ? An analysis of EU agri-food imports," PSE - G-MOND WORKING PAPERS halshs-00967423, HAL.
  7. Guillaume Gaulier & Soledad Zignago, 2010. "BACI: International Trade Database at the Product-Level. The 1994-2007 Version," Working Papers 2010-23, CEPII research center.
  8. 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.
  9. Beghin, John C., 2006. "Nontariff Barriers," Staff General Research Papers 12703, Iowa State University, Department of Economics.
  10. Gordhan K. Saini, 2009. "Non-tariff measures and Indian textiles and clothing exports," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2009-002, Indira Gandhi Institute of Development Research, Mumbai, India.
  11. Drogue, Sophie & Gozlan, Estelle, 2007. "Trade-distorting SPS and TBT regulations in the EU? A qualitative assessment from the market for live plants and cut flowers," Working Papers, TRADEAG - Agricultural Trade Agreements 7216, TRADEAG - Agricultural Trade Agreements.
  12. Portugal-Perez, Alberto & Wilson, John S., 2009. "Why trade facilitation matters to Africa," World Trade Review, Cambridge University Press, Cambridge University Press, vol. 8(03), pages 379-416, July.
  13. Gordhan K. Saini, 2009. "Non-Tariff Measures and Indian Textiles and Clothing Exports," Trade Working Papers 22407, East Asian Bureau of Economic Research.
  14. Murali Kallummal, 2012. "SPS measures and possible market access implications for agricultural trade in the Doha Round: An analysis of systemic issues," Working Papers, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada. 11612, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
  15. Baddeley, Shane & Cheng, Peter & Wolfe, Robert, 2011. "Trade Policy Implications of Carbon Labels on Food," Commissioned Papers, Canadian Agricultural Trade Policy Research Network 122740, Canadian Agricultural Trade Policy Research Network.

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