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Disentangling Demand-Enhancing And Trade-Cost Effects Of Maximum Residue Regulations

In: Nontariff Measures and International Trade

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  • BO XIONG
  • JOHN BEGHIN

Abstract

Maximum residue level (MRL) regulations in plant products can create unnecessary trade barriers on one hand and enhance demand via risk mitigation or quality assurance on the other. Westipulate a generalized gravity equation model to disentangle the effects of MRLs on the import demand and foreign exporters’ supply. Applying the framework to the MRLs on pesticides imposed by high-income Organization for Economic Co-operation and Development countries, we find that the MRLs jointly enhance the import demand and hinder foreign exporters’ supply. In addition, exporters from the less and least developed countries are more constrained by the MRLs than their competitors from the developed world.

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  • Bo Xiong & John Beghin, 2017. "Disentangling Demand-Enhancing And Trade-Cost Effects Of Maximum Residue Regulations," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 6, pages 105-108, World Scientific Publishing Co. Pte. Ltd..
  • Handle: RePEc:wsi:wschap:9789813144415_0006
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    More about this item

    Keywords

    Nontariff Measures; Standards; Barrier; NTM; NTB; Technical Barrier; TBT; International Trade; Phytosanitary; SPS; Maximum Residue Limits; MRL; Food Trade;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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