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Retaliatory Use of Public Standards in Trade

Author

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  • Nes, Kjersti
  • Schaefer, K. Aleks

Abstract

This research investigates the extent to which countries use public standards as a means of political retaliation in the international policy arena. We construct a dataset that matches the adoption of sanitary and phytosanitary (SPS) standards between 1996-2015 with SPS committee data on specific trade concerns and annual, bilateral trade flows. We evaluate the presence and frequency of retaliation by assessing the extent to which measures imposed by one country against another increase the probability that the country targeted by the original measure will respond with a measure of their own. We observe that this type of tit-for-tat behavior commonly occurred outside the product group of the original measure and for politically strategic goods. At the two-digit level, we find that about 3,000 bilateral trade flows globally--or just over $110 billion in trade--were subject to retaliatory standards in 2015.
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Suggested Citation

  • Nes, Kjersti & Schaefer, K. Aleks, "undated". "Retaliatory Use of Public Standards in Trade," 2019 Annual Meeting, July 21-23, Atlanta, Georgia 291071, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea19:291071
    DOI: 10.22004/ag.econ.291071
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    File URL: https://ageconsearch.umn.edu/record/291071/files/Abstracts_19_05_14_09_35_37_58__82_237_48_111_0.pdf
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    1. is not listed on IDEAS
    2. Nes, Kjersti & Schaefer, K. Aleks & Yu, Jisang, 2025. "Economic impacts of the Indian ban on non-Basmati rice exports," Food Policy, Elsevier, vol. 134(C).
    3. Colbert, Stephanie & Wilkinson, Claire & Thornton, Louise & Feng, Xiaoqi & Richmond, Robyn, 2021. "Online alcohol sales and home delivery: An international policy review and systematic literature review," Health Policy, Elsevier, vol. 125(9), pages 1222-1237.
    4. Schaefer, K. Aleks & Wolf, Christopher A., 2025. "Trade protection via tariff rate quota administration," Food Policy, Elsevier, vol. 131(C).
    5. Natalia Boyko & Kjersti Nes & K. Aleks Schaefer, 2024. "International trade and Ukraine's pursuit of self‐determination," The World Economy, Wiley Blackwell, vol. 47(4), pages 1460-1477, April.
    6. Robert M. Feinberg & Kjersti Nes & Kara M. Reynolds & Aleks Schaefer, 2025. "Multi-mode trade policy retaliation," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 161(2), pages 441-467, May.

    More about this item

    Keywords

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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F5 - International Economics - - International Relations, National Security, and International Political Economy
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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