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Reciprocity, Harmonisation and Mutual and Mutual Recognition of Regulatory Measures: A Political Economy Perspective

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  • Akiko Suwa-Eisenmann
  • Thierry Verdier

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Abstract

This paper discusses the issue of regulatory protectionism and its implication for reciprocity and international bargaining on regulation. In a simple two way trade model a la Brander and Spencer, we take into account the three following features of regulatory measures: a) a regulation raises the cost not only of foreign producers but also of domestic producers, b) a regulation creates a fixed cost which is entirely supported by foreign exporters, c) a regulation may provide a welfare gain valued per se by individuals or to correct some market failure. In this context, we investigate the political economy forces for unilateral regulatory protectionism and the effectiveness of various intra-sectorial bargaining schemes (negotiated reciprocal regulation setting, harmonization or mutual recognition agreements) to ensure reciprocal market access.

Suggested Citation

  • Akiko Suwa-Eisenmann & Thierry Verdier, "undated". "Reciprocity, Harmonisation and Mutual and Mutual Recognition of Regulatory Measures: A Political Economy Perspective," Research Unit Working Papers 0102, Laboratoire d'Economie Appliquee, INRA.
  • Handle: RePEc:lea:leawpi:0102
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    More about this item

    Keywords

    standards; negotiation; market access;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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