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North-South Standards Harmonization and International Trade

Author

Listed:
  • Olivier CADOT

    (Faculté des hautes études commerciales - Université de Lausanne)

  • Anne-Cécilia DISDIER

    (FERDI)

  • Lionel FONTAGNÉ

    (FERDI)

Abstract

Recent years have seen a surge in regional trade agreements (RTAs) and the development of non-tariff measures (NTMs). As a consequence, a growing number of RTAs include provisions on NTMs. This paper investigates the effect of standards-harmonization clauses contained in many North-South Agreements on international trade. Using a gravity equation, we find that (i) North-South harmonization of technical regulations reinforces a hub-and-spoke trade structure potentially detrimental to the development of South-South trade and (ii) harmonization on regional standards hurts Southern exports to the North. Thus, standards-harmonization provisions included in many recent North-South RTAs miss their target and contribute to marginalize Southern countries in the worldeconomy.

Suggested Citation

  • Olivier CADOT & Anne-Cécilia DISDIER & Lionel FONTAGNÉ, 2012. "North-South Standards Harmonization and International Trade," Working Papers P42, FERDI.
    • Handle: RePEc:fdi:wpaper:529
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    References listed on IDEAS

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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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