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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 public standards between 1996–2015 with annual, bilateral trade flows and the initiation of antidumping and countervailing duty (ADCV) proceedings. Our results indicate that—over the period of analysis—public standards were frequently used for retaliatory purposes. The imposition of a public standard or the instigation of an ADCV proceeding by one country against another country increased the probability that the target country would adopt a standard of its own. Retaliation commonly occurred outside the product group of the original measure. At the 2-digit product level, we find that about 4,000 bilateral trade flows were subject to retaliatory standards. Under reasonable assumptions, this equates to trade losses in the range of $30–$40 billion per year. However, implications may not be exclusively trade destructive. Retaliation may also have induced the withdrawal of non-tariff barriers in partner countries.

Suggested Citation

  • Nes, Kjersti & Schaefer, K. Aleks, "undated". "Retaliatory Use of Public Standards in Trade," 2019: Trading for Good - Agricultural Trade in the Context of Climate Change Adaptation and Mitigation... Symposium, June 23-25, 2019, Seville, Spain 312529, International Agricultural Trade Research Consortium.
    • Handle: RePEc:ags:iat19e:312529
    DOI: 10.22004/ag.econ.312529
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    File URL: https://ageconsearch.umn.edu/record/312529/files/Session%201%20-%20Schaefer.pdf
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    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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