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Regulatory Protectionism, Developing Nations and a Two-Tier World Trade System

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Baldwin, Richard

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Abstract

‘Regulatory protection’ or technical barriers to trade (TBT) are two names for the myriad of cost-raising, behind-the-border measures that substantially inhibit trade. This paper argues that TBTs are important and their liberalization will continue. This liberalization will involve ‘hegemonic harmonization’ or mutual recognition of rules and test. Such liberalization will almost surely entail preferential arrangements among rich nations, creating in essence, a two-tier system of market access with developing nations in the second tier. Importantly, this discrimination will be higher for advanced products (which are naturally subject to more regulations and standards), so the discrimination may have an 'escalating' feature, much as tariffs did in the early post-war period. Consequently, the WTO should address the potentially discriminatory aspects of regional TBT liberalization initiatives. In particular, rules of origin should not be allowed.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2574.

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Date of creation: Oct 2000
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Handle: RePEc:cpr:ceprdp:2574

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Related research
Keywords: Standards; Technical Barriers To Trade; WTO Reform;

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Find related papers by JEL classification:
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
F15 - International Economics - - Trade - - - Economic Integration

References listed on IDEAS
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    Other versions:
  2. Shang-Jin Wei, 1996. "Intra-National versus International Trade: How Stubborn are Nations in Global Integration?," NBER Working Papers 5531, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Sapir, André, 1997. "Domino Effects in Western European Trade, 1960-92," CEPR Discussion Papers 1576, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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    Other versions:
  8. Markusen, James R. & Venables, Anthony J., 1988. "Trade policy with increasing returns and imperfect competition : Contradictory results from competing assumptions," Journal of International Economics, Elsevier, vol. 24(3-4), pages 299-316, May. [Downloadable!] (restricted)
    Other versions:
  9. Dixit, Avinash & Grossman, Gene M & Helpman, Elhanan, 1997. "Common Agency and Coordination: General Theory and Application to Government Policy Making," Journal of Political Economy, University of Chicago Press, vol. 105(4), pages 752-69, August.
  10. repec:att:wimass:1919989 is not listed on IDEAS
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Akiko Suwa-Eisenmann & Thierry Verdier, . "Reciprocity, Harmonisation and Mutual and Mutual Recognition of Regulatory Measures: A Political Economy Perspective," Research Unit Working Papers 0102, Laboratoire d'Economie Appliquee, INRA. [Downloadable!]
  2. Badulescu, Dan & Baylis, Kathy, 2006. "Pesticide Regulation Under NAFTA: Harmonization in Process?," Commissioned Papers 24163, Canadian Agricultural Trade Policy Research Network. [Downloadable!]
  3. Nardella, Michele & Boccaletti, Stefano, 2004. "The Impact Of Eu And Us Agro-Food Non Tariff Measures On Exports From Developing Countries," 2004 Annual meeting, August 1-4, Denver, CO 20105, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  4. Natalie Chen & Dennis Novy, 2009. "International Trade Integration: A Disaggregated Approach," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  5. Maskus, Keith E. & Wilson, John S. & Tsunehiro Otsuki, 2000. "Quantifying the impact of technical barriers to trade : a framework for analysis," Policy Research Working Paper Series 2512, The World Bank. [Downloadable!]
  6. Chen, Maggie Xiaoyang & Mattoo, Aaditya, 2004. "Regionalism in standards - good or bad for trade?," Policy Research Working Paper Series 3458, The World Bank. [Downloadable!]
    Other versions:
  7. T. Huw Edwards, 2004. "Trade and Strategic Regulatory Bias in Monopolistic Industries," Discussion Paper Series 2004-21, Department of Economics, Loughborough University, revised Sep 2004. [Downloadable!]
  8. Arnaud Costinot, 2008. "A Comparative Institutional Analysis of Agreements on Product Standards," University of California at San Diego, Economics Working Paper Series 2008-05, Department of Economics, UC San Diego. [Downloadable!]
    Other versions:
  9. Joseph Francois, 2005. "Preferential Trade Arrangements and the Pattern of Production and Trade when Inputs are Differentiated," The Institute for International Integration Studies Discussion Paper Series iiisdp86, IIIS. [Downloadable!]
    Other versions:
  10. Alberto AMURGO PACHECO, 2006. "Mutual Recognition Agreements and Trade Diversion: Consequences for Developing Nations," HEI Working Papers 20-2006, Economics Section, The Graduate Institute of International Studies, revised Jun 2007. [Downloadable!]
  11. Mattoo, Aaditya & Fink, Carsten, 2002. "Regional agreements and trade services - policy issues," Policy Research Working Paper Series 2852, The World Bank. [Downloadable!]
  12. Richard Baldwin, 2007. "Multilateralising Regionalism: Sphagetti Bowls as building Blocs on the Path to Global Free Trade," Working Papers id:1231, esocialsciences.com. [Downloadable!]
    Other versions:
  13. Ottaviano, Gianmarco I.P., 2002. "Regional Policy in the Global Economy: Insights from New Economic Geography," Discussion Paper Series 26318, Hamburg Institute of International Economics. [Downloadable!]
    Other versions:
  14. Swinnen, J.F.M. & Vandemoortele, T., 2008. "The Political Economy of Nutrition and Health Standards in Food Markets," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44364, European Association of Agricultural Economists. [Downloadable!]
    Other versions:
  15. Baldwin, Richard & Rieder, Roland, 2007. "A Test of Endogenous Trade Bloc Formation Theory on EU Data," CEPR Discussion Papers 6389, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  16. Maur, Jean-Christophe, 2008. "Regionalism and trade facilitation : a primer," Policy Research Working Paper Series 4464, The World Bank. [Downloadable!]
  17. Olivier Cadot & Akiko Suwa-Eisenmann & Daniel Traça, 2001. "Trade-related issues in the regulation of genetically modified organisms," Research Unit Working Papers 0203, Laboratoire d'Economie Appliquee, INRA. [Downloadable!]
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