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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. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, American Economic Association, vol. 70(5), pages 950-59, December.
  2. Yue, Chengyan & Beghin, John C. & Jensen, Helen H., 2005. "Tariff Equivalent of Technical Barriers to Trade with Imperfect Substitution and Trade Costs," 2005 Annual meeting, July 24-27, Providence, RI, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 19253, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Stephen Redding & Anthony J. Venables, 2001. "Economic Geography and International Inequality," CEP Discussion Papers, Centre for Economic Performance, LSE dp0495, Centre for Economic Performance, LSE.
  4. 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, Elsevier, vol. 32(2), pages 337-368, April.
  5. John C. Beghin & Jean-Christophe Bureau, 2001. "Quantitative Policy Analysis of Sanitary, Phytosanitary and Technical Barriers to Trade," Economie Internationale, CEPII research center, CEPII research center, issue 87, pages 107-130.
  6. Kee, Hiau Looi & Nicita, Alessandro & Olarreaga, Marcelo, 2006. "Estimating trade restrictiveness indices," Policy Research Working Paper Series 3840, The World Bank.
  7. 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.
  8. Salvatici, Luca & Cipollina, Maria, 2006. "Measuring Protection: Mission Impossible?," Working Papers, TRADEAG - Agricultural Trade Agreements 18876, TRADEAG - Agricultural Trade Agreements.
  9. 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.
  10. 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.
  11. Alan Deardorff, 1998. "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?," NBER Chapters, National Bureau of Economic Research, Inc, in: The Regionalization of the World Economy, pages 7-32 National Bureau of Economic Research, Inc.
  12. 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, CEPII research center 2004-22, CEPII research center.
  13. 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, Foundation for the European Review of Agricultural Economics, vol. 28(3), pages 263-284, October.
  14. Harrigan, James, 1993. "OECD imports and trade barriers in 1983," Journal of International Economics, Elsevier, Elsevier, vol. 35(1-2), pages 91-111, August.
  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, De Gruyter, vol. 9(1), pages 1-41, March.
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Citations

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Cited by:
  1. 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.
  2. Jaime MELO DE & Céline CARRERE, 2009. "Notes on Detecting the Effects of Non Tariff Measures," Working Papers 200932, CERDI.
  3. 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.
  4. 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, HAL halshs-00967423, HAL.
  5. 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.
  6. 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).
  7. 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.
  8. 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.
  9. 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.
  10. Beghin, John C., 2006. "Nontariff Barriers," Staff General Research Papers, Iowa State University, Department of Economics 12703, Iowa State University, Department of Economics.
  11. Gordhan K. Saini, 2009. "Non-Tariff Measures and Indian Textiles and Clothing Exports," Trade Working Papers 22407, East Asian Bureau of Economic Research.
  12. Guillaume Gaulier & Soledad Zignago, 2010. "BACI: International Trade Database at the Product-Level. The 1994-2007 Version," Working Papers, CEPII research center 2010-23, CEPII research center.
  13. 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.
  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. 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, Iowa State University, Department of Economics 32393, Iowa State University, Department of Economics.

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