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Reputation Matters: Spillover Effects in the Enforcement of US SPS Measures

  • Marie-Agnès Jouanjean
  • Jean-Christophe Maur
  • Ben Shepherd

This paper uses a novel dataset on US food import refusals to show that reputation is an important factor in the enforcement of sanitary and phyto-sanitary (SPS) measures. The strongest reputation effect comes from a country’s own history of compliance in relation to a particular product. The odds of at least one import refusal in the current year increase by over 300% if there was a refusal in the preceding year, after controlling for other factors. However, the data are also suggestive of the existence of two sets of spillovers. First, import refusals are less likely if there is an established history of compliance in relation to other goods in the same sector. Second, an established history of compliance in relation to the same product by neighboring countries also helps reduce the number of import refusals. These findings have important policy implications for exporters of agricultural products, particularly in middle-income countries. In particular, they highlight the importance of a comprehensive approach to upgrading standards systems, focusing on sectors rather than individual products, as well as the possible benefits that can come from regional cooperation in building SPS compliance capacity.

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Paper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 30211.

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Date of creation: 2011
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Handle: RePEc:lic:licosd:30211
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  1. Jean C. Buzby & Donna Roberts, 2010. "Food Trade and Food Safety Violations: What Can We Learn From Import Refusal Data?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(2), pages 560-565.
  2. Marie-Agnes Jouanjean, 2011. "Standard, Reputation and Trade: Evidence from U.S horticultural imports refusals," LICOS Discussion Papers 28111, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  3. Kathy Baylis & Lia Nogueira & Kathryn Pace, 2010. "Food Import Refusals: Evidence from the European Union," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(2), pages 566-572.
  4. Maertens, Miet & Swinnen, Johan F.M., 2007. "Trade, Standards and Poverty. Evidence from Senegal," 106th Seminar, October 25-27, 2007, Montpellier, France 7924, European Association of Agricultural Economists.
  5. Anna Alberini & Erik Lichtenberg & Dominic Mancini & Gregmar I. Galinato, 2005. "Was It Something I Ate? Implementation of the FDA Seafood HACCP Program," Working Papers 2005.104, Fondazione Eni Enrico Mattei.
  6. repec:pse:psecon:2009-28 is not listed on IDEAS
  7. Kathy Baylis & Andrea Martens & Lia Nogueira, 2009. "What Drives Import Refusals?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(5), pages 1477-1483.
  8. Jaud, Mélise & Cadot, Olivier & Suwa-Eisenmann, Akiko, 2010. "Do Food Scares Explain Supplier Concentration? An Analysis of EU Agri-food Imports," CEPREMAP Working Papers (Docweb) 1015, CEPREMAP.
  9. Jouanjean, Marie-Agnès, 2012. "Standards, reputation, and trade: evidence from US horticultural import refusals," World Trade Review, Cambridge University Press, vol. 11(03), pages 438-461, July.
  10. Essaji, Azim, 2008. "Technical regulations and specialization in international trade," Journal of International Economics, Elsevier, vol. 76(2), pages 166-176, December.
  11. Mélise Jaud & Olivier Cadot & Akiko Suwa-Eisenmann, 2009. "Do food scares explain supplier concentration ? An analysis of EU agri-food imports," PSE - G-MOND WORKING PAPERS halshs-00967423, HAL.
  12. Karov, Vuko & Roberts, Donna & Grant, Jason H. & Peterson, Everett B., 2009. "A Preliminary Empirical Assessment of the Effect of Phytosanitary Regulations on US Fresh Fruit and Vegetable Imports," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49345, Agricultural and Applied Economics Association.
  13. Disdier, Anne-Celia & Fontagne, Lionel & Mimouni, Mondher, 2008. "AJAE Appendix: The Impact of Regulations on Agricultural Trade: Evidence from the SPS and TBT Agreements," American Journal of Agricultural Economics Appendices, Agricultural and Applied Economics Association, vol. 90(2), May.
  14. Baylis, Kathy & Nogueira, Lia & Pace, Kathryn, 2012. "Something Fishy: Tariff vs Non-Tariff Barriers in Seafood Trade," 2012: New Rules of Trade?, December 2012, San Diego, California 142920, International Agricultural Trade Research Consortium.
  15. Buzby, Jean C. & Unnevehr, Laurian J. & Roberts, Donna, 2008. "Food Safety and Imports: An Analysis of FDA Food-Related Import Refusal Reports," Economic Information Bulletin 58626, United States Department of Agriculture, Economic Research Service.
  16. Jean-Pierre Chauffour & Jean-Christophe Maur, 2011. "Preferential Trade Agreement Policies for Development : A Handbook," World Bank Publications, The World Bank, number 2329, June.
  17. Mélise Jaud & Olivier Cadot & Akiko Suwa-Eisenmann, 2009. "Do food scares explain supplier concentration? An analysis of EU agri-food imports," PSE Working Papers halshs-00574963, HAL.
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