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Reputation matters: Spillover effects in the enforcement of US SPS measures

  • Jouanjean, Marie-Agnes
  • Maur, Jean-Christophe
  • Shepherd, Ben

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 University Library of Munich, Germany in its series MPRA Paper with number 35270.

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Date of creation: 07 Dec 2011
Date of revision:
Handle: RePEc:pra:mprapa:35270
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  1. Essaji, Azim, 2008. "Technical regulations and specialization in international trade," Journal of International Economics, Elsevier, vol. 76(2), pages 166-176, December.
  2. Alberini, Anna & Lichtenberg, Erik & Mancini, Dominic & Galinato, Gregmar I., 2005. "Was It Something I Ate? Implementation of the FDA Seafood HACCP Program," Working Papers 28607, University of Maryland, Department of Agricultural and Resource Economics.
  3. Cadot, Olivier & Jaud, Mélise & Suwa Eisenmann, Akiko, 2009. "Do Food Scares Explain Supplier Concentration? An Analysis of EU Agri-food Imports," CEPR Discussion Papers 7431, C.E.P.R. Discussion Papers.
  4. repec:pse:psecon:2009-28 is not listed on IDEAS
  5. 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.
  6. Anne-Célia Disdier & Lionel Fontagné & Mondher Mimouni, 2008. "The Impact of Regulations on Agricultural Trade: Evidence from the SPS and TBT Agreements," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 336-350.
  7. Jean-Pierre Chauffour & Jean-Christophe Maur, 2011. "Preferential Trade Agreement Policies for Development : A Handbook," World Bank Publications, The World Bank, number 2329.
  8. Miet Maertens & Johan F.M. Swinnen, 2006. "Trade, Standards, and Poverty: Evidence from Senegal," LICOS Discussion Papers 17706, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  9. Baylis, Katherine R. & 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.
  10. 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.
  11. 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.
  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. 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.
  14. 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.
  15. 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.
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