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Poisoned Grapes, Mad Cow, and Protectionism

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Eduardo Engel

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Abstract

This paper studies two episodes where an exporting industry saw its sales plummet after importing countries banned their products to protect their citizens' health. The first case is the poisoned grapes crisis involving Chile and the United States in 1989. The second is the mad cows dispute between the United Kingdom and the European Union in 1996. These case studies motivate a new definition of protectionist measure' which is applied to argue the European Union's ban on British beef exports did not constitute a protectionist measure, while the US ban on Chilean fruit possibly classifies as such a measure.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6959.

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Date of creation: Feb 1999
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Handle: RePEc:nbr:nberwo:6959

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Find related papers by JEL classification:
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade

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  1. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law & Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
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  1. Pierpaolo Battigalli & Giovanni Maggi, 2003. "International agreements on product standards: an incomplete-contracting theory," Working Papers 229, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University. [Downloadable!]
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