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Poisoned Grapes, Mad Cow, and Protectionism

Author

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  • Eduardo Engel

Abstract

This paper studies two episodes where an exporting industry saw its sales plummet after importing countries banned their products to protect their citizens' health. The first case is the poisoned grapes crisis involving Chile and the United States in 1989. The second is the mad cows dispute between the United Kingdom and the European Union in 1996. These case studies motivate a new definition of protectionist measure' which is applied to argue the European Union's ban on British beef exports did not constitute a protectionist measure, while the US ban on Chilean fruit possibly classifies as such a measure.

Suggested Citation

  • Eduardo Engel, 1999. "Poisoned Grapes, Mad Cow, and Protectionism," NBER Working Papers 6959, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:6959
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    Cited by:

    1. Emma Aisbett & Magdalene Silberberger, 2021. "Tariff liberalization and product standards: Regulatory chill and race to the bottom?," Regulation & Governance, John Wiley & Sons, vol. 15(3), pages 987-1006, July.
    2. Grundke, Robert & Moser, Christoph, 2019. "Hidden protectionism? Evidence from non-tariff barriers to trade in the United States," Journal of International Economics, Elsevier, vol. 117(C), pages 143-157.
    3. Donald Larson & Will Martin & Sebnem Sahin & Marinos Tsigas, 2016. "Agricultural Policies and Trade Paths in Turkey," The World Economy, Wiley Blackwell, vol. 39(8), pages 1194-1224, August.
    4. Pierpaolo Battigalli & Giovanni Maggi, 2003. "International agreements on product standards: an incomplete-contracting theory," Working Papers 229, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    5. Daniel M. Sturm, 2006. "Product standards, trade disputes, and protectionism," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 39(2), pages 564-581, May.
    6. Olivier Cadot & Akiko Suwa-Eisenmann & Daniel Traça, 2003. "OGM et relations commerciales transatlantiques," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 68, pages 103-148.
    7. Nganje, William E. & Skilton, Paul F., . "Food Risks and Type I & II Errors," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(5), pages 1-16.
    8. Klimenko, Mikhail M., 2009. "Policies and international trade agreements on technical compatibility for industries with network externalities," Journal of International Economics, Elsevier, vol. 77(2), pages 151-166, April.
    9. Kala Krishna & Yelena Sheveleva, 2017. "Wheat or Strawberries? Intermediated Trade with Limited Contracting," American Economic Journal: Microeconomics, American Economic Association, vol. 9(3), pages 28-62, August.

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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