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Protectionism Indices for Non-Tariff Measures: An Application to Maximum Residue Levels

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  • Li, Yuan
  • Beghin, John C.

Abstract

We propose aggregation indices of Non-Tariff Measures (NTMs) to quantify their protectionism relative to international standards. We apply the indices to national Maximum Residue Limit (MRL) regulations affecting agricultural and food trade and using a science-based criteria embodied in Codex Alimentarius international standards. The approach links two streams of the NTM literature, one concerned with the aggregation of various NTMs into operational indices for econometric and modeling purposes, and the other attempting to evaluate the protectionism of NTMs. The data used in the application come from a large international dataset on veterinary and pesticide MRLs and CODEX MRL standards for a large set of countries

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File URL: http://www.econ.iastate.edu/sites/default/files/publications/papers/p15276-2012-07-19.pdf
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Bibliographic Info

Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 35276.

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Date of creation: 18 Jul 2012
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Publication status: Forthcoming in Food Policy
Handle: RePEc:isu:genres:35276

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
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Web page: http://www.econ.iastate.edu
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Keywords: NTMs; Non-tariff measures; barriers; protectionism; Maximum residue limit; MRL;

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References

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  1. 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.
  2. Stéphan Marette & John C. Beghin, 2007. "Are Standards Always Protectionist?," Food and Agricultural Policy Research Institute (FAPRI) Publications 07-wp450, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
  3. Achterbosch, Thom J. & Engler, Alejandra & Rau, Marie-Luise & Toledo, Roger, 2009. "Measure the measure: the impact of differences in pesticide MRLs on Chilean fruit exports to the EU," 2009 Conference, August 16-22, 2009, Beijing, China 51765, International Association of Agricultural Economists.
  4. Disdier, Anne-Celia & Fontagne, Lionel & Mimouni, Mondher, 2008. "AJAE Appendix: The Impact of Regulations on Agricultural Trade: Evidence from the SPS and TBT Agreements," American Journal of Agricultural Economics Appendices, Agricultural and Applied Economics Association, vol. 90(2), May.
  5. Henk Kox & Arjan Lejour, 2006. "The Effects of the Services Directive on Intra-eu Trade and fdi," Revue économique, Presses de Sciences-Po, vol. 57(4), pages 747-769.
  6. 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.
  7. Li, Yuan & Beghin, John C., 2012. "A meta-analysis of estimates of the impact of technical barriers to trade," Journal of Policy Modeling, Elsevier, vol. 34(3), pages 497-511.
  8. Ronald Fischer & Pablo Serra, 1998. "Standards and Protection," Documentos de Trabajo 45, Centro de Economía Aplicada, Universidad de Chile.
  9. Drogue, Sophie & DeMaria, Federica, 2011. "Pesticides Residues and Trade: the Apple of Discord?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114445, European Association of Agricultural Economists.
  10. Wilson, John S. & Otsuki, Tsunehiro, 2004. "To spray or not to spray: pesticides, banana exports, and food safety," Food Policy, Elsevier, vol. 29(2), pages 131-146, April.
  11. Anne-Célia Disdier & Frank van Tongeren, 2010. "Non-Tariff Measures in Agri-Food Trade: What Do the Data Tell Us? Evidence from a Cluster Analysis on OECD Imports," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 32(3), pages 436-455.
  12. Trefler, Daniel, 1993. "Trade Liberalization and the Theory of Endogenous Protection: An Econometric Study of U.S. Import Policy," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 138-60, February.
  13. Bo Xiong & John Beghin, 2012. "Does European aflatoxin regulation hurt groundnut exporters from Africa?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 39(4), pages 589-609, September.
  14. Katia Berti & Rod Falvey, . "Does Trade Weaken product Quality Standards?," Discussion Papers 11/24, University of Nottingham, GEP.
  15. Mauro Vigani & Valentina Raimondi & Alessandro Olper, 2010. "GMO Regulations, International Trade and the Imperialism of Standards," LICOS Discussion Papers 25510, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
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Citations

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Cited by:
  1. Beghin, John C. & Li, Yuan, 2013. "The Political Economy Of Food Standard Determination: International Evidence From Maximum Residue Limits," Staff General Research Papers 36181, Iowa State University, Department of Economics.
  2. Bo Xiong & John C. Beghin, 2013. "Disentangling Demand-Enhancing and Trade-Cost Effects of Maximum Residue Regulations," Center for Agricultural and Rural Development (CARD) Publications 13-wp544, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  3. 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.
  4. Xiong, Bo & Beghin, John C., 2012. "Stringent Maximum Residue Limits, Protectionism, and Competitiveness: The Cases of the US and Canada," Staff General Research Papers 35584, Iowa State University, Department of Economics.
  5. Ferro, Esteban & Wilson, John S. & Otsuki, Tsunehiro, 2013. "The effect of product standards on agricultural exports from developing countries," Policy Research Working Paper Series 6518, The World Bank.

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