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Non-tariff measures when alternative regulatory tools can be chosen

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  • Stephan Marette

    (ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - AgroParisTech)

Abstract

This paper analyzes whether or not different non-tariff measures (NTM) like a standard or a mandatory label can be considered as protectionist in presence of market imperfections. From a welfare-based approach, protectionism occurs when the instrument maximizing domestic welfare is different from the alternative instrument maximizing international welfare inclusive of foreign profits. A framework taking into account different tools shows the complexity for characterizing protectionism related to different NTM. When the standard impacts variable costs, the mandatory label can be protectionist. When the standard impacts sunk costs, the standard can be protectionist. The framework is also useful for empirically characterizing the impact of NTM related to a specific product. An application to shrimp trade illustrates the feasibility of the welfare measure, for an ex ante evaluation of possible environmental regulations that could be implemented in the future. This application confirms that the tool maximizing domestic welfare does not systematically correspond to the tool maximizing international welfare.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Stephan Marette, 2015. "Non-tariff measures when alternative regulatory tools can be chosen," Post-Print hal-01173067, HAL.
  • Handle: RePEc:hal:journl:hal-01173067
    DOI: 10.1515/jafio-2015-0009
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    References listed on IDEAS

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    24. 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, vol. 92(3), pages 713-726.
    25. Witold Czubala & Ben Shepherd & John S. Wilson, 2009. "Help or Hindrance? The Impact of Harmonised Standards on African Exports †," Journal of African Economies, Centre for the Study of African Economies, vol. 18(5), pages 711-744, November.
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    Citations

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    Cited by:

    1. Gründler, Klaus & Hillman, Arye L., 2021. "Ambiguous protection," European Journal of Political Economy, Elsevier, vol. 68(C).
    2. Marette Stéphan, 2018. "Illegitimate or Legitimate Non-Tariff Measures," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 16(2), pages 1-18, November.
    3. 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..
    4. 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.
    5. John C. Beghin & Heidi Schweizer, 2021. "Agricultural Trade Costs," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(2), pages 500-530, June.
    6. Meloni, Giulia & Swinnen, Johan, 2018. "Trade and terroir. The political economy of the world’s first geographical indications," Food Policy, Elsevier, vol. 81(C), pages 1-20.
    7. 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.
    8. 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..
    9. Olper, Alessandro, 2017. "The political economy of trade-related regulatory policy: environment and global value chain," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 5(3), February.

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    More about this item

    Keywords

    barrières non tarifaires; commerce; crevettes;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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