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Trade effects of standards harmonization in the EU: improved access for non-EU partners

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  • Anirudh Shingal

    (Indian Council for Research on International Economic Relations (ICRIER))

  • Malte Ehrich

Abstract

In September 2008, the EU replaced national-level regulation on Maximum Residue Levels (MRLs) in pesticides with harmonized Community-wide regulation. Using data on pesticide MRLs for 53 trading partners over 2005-2014, we examine the effects of this harmonization on both intra- and extra-EU imports in an original empirical contribution to this literature. We also embed regulatory heterogeneity in the Melitz (2003) framework in a theoretical contribution. We find robust evidence for adverse effects of regulatory heterogeneity on intra-EU trade in the pre-harmonization period, which questions the implementation of the Cassis de Dijon principle. Our findings also suggest that the EU’s MRL harmonization may have improved access for non-EU, including non-OECD, exporters to the Common Market.

Suggested Citation

  • Anirudh Shingal & Malte Ehrich, 2019. "Trade effects of standards harmonization in the EU: improved access for non-EU partners," Indian Council for Research on International Economic Relations (ICRIER) Working Paper 372, Indian Council for Research on International Economic Relations (ICRIER), New Delhi, India.
    • Handle: RePEc:bdc:wpaper:372
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