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

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

Abstract

This paper uses a novel dataset on United States food import refusals to show that reputation is an important factor in the enforcement of sanitary and phytosanitary 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 more than 300 percent 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, especially 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 sanitary and phytosanitary compliance capacity.

Suggested Citation

  • Jouanjean, Marie-Agnes & Maur, Jean-Christophe, 2012. "Reputation matters : spillover effects in the enforcement of US SPS measures," Policy Research Working Paper Series 5935, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5935
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. Jean-Pierre Chauffour & Jean-Christophe Maur, 2011. "Preferential Trade Agreement Policies for Development : A Handbook," World Bank Publications, The World Bank, number 2329, June.
    4. 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.
    5. Maertens, Miet & Swinnen, Johan F.M., 2009. "Trade, Standards, and Poverty: Evidence from Senegal," World Development, Elsevier, vol. 37(1), pages 161-178, January.
    6. Mélise Jaud & Olivier Cadot & Akiko Suwa-Eisenmann, 2013. "Do food scares explain supplier concentration? An analysis of EU agri-food imports," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 40(5), pages 873-890, December.
    7. 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.
    8. Dominic Mancini & Gregmar I. Galinato, 2008. "Was It Something I Ate? Implementation of the FDA Seafood HACCP Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(1), pages 28-41.
    9. repec:pse:psecon:2009-28 is not listed on IDEAS
    10. 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.
    11. 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.
    12. Essaji, Azim, 2008. "Technical regulations and specialization in international trade," Journal of International Economics, Elsevier, vol. 76(2), pages 166-176, December.
    13. 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.
    14. 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.
    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.
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    Citations

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    Cited by:

    1. Olivier Cadot & Julien Gourdon, 2016. "Non-tariff measures, preferential trade agreements, and prices: new evidence," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(2), pages 227-249, May.
    2. repec:bla:jcmkts:v:55:y:2017:i:2:p:387-405 is not listed on IDEAS
    3. Alvarez-Coque, Jose Maria & Marco, Lorena & Sleva, Maria Luisa, 2015. "Investigating differences in safety border notifications on fruita nd vegetables imports," 2015 Conference, August 9-14, 2015, Milan, Italy 211645, International Association of Agricultural Economists.
    4. Olivier Cadot & Julien Gourdon, 2015. "NTMs, Preferential Trade Agreements, and Prices: New evidence," Working Papers 2015-01, CEPII research center.
    5. Marie-Agnès Jouanjean, 2012. "Market Access & Food Standards: Insights from the Implementation of US Sanitary and Phytosanitary Regulation," Sciences Po publications info:hdl:2441/7o52iohb7k6, Sciences Po.
    6. Taghouti, Ibtissem & Martinez-Gomez, Victor & Coque, José María Garcia Alvarez, 0. "Exploring Eu Food Safety Notifications On Agro-Food Imports: Are Mediterranean Partner Countries Discriminated?," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 3.
    7. Robert Grundke & Christoph Moser, 2014. "Hidden Protectionism? Evidence from Non-tariff Barriers to Trade in the United States," CESifo Working Paper Series 5142, CESifo Group Munich.
    8. Kareem, Fatima Olanike & Brümmer, Bernhard & Martinez-Zarzoso, Inmaculada, 2015. "The Implication of European Union’s Food Regulations on Developing Countries: Food Safety Standards, Entry Price System and Africa’s Export," Discussion Papers 198719, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    9. Taghouti, Ibtissem & Martinez-Gomez, Victor & Marti, Luisa, 2016. "Sanitary and Phytosanitary measures in agri-food imports from the European Union: Reputation effects over time," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 16(2).
    10. World Bank, 2015. "How to Sustain Export Dynamism by Reducing Duality in the Dominican Republic
      [Cómo mantener el dinamismo exportador en la República Dominicana : un diagnóstico del Banco Mundial sobre competitivida
      ," World Bank Other Operational Studies 21685, The World Bank.
    11. Cadot, Olivier, 2015. "NTMs, Preferential Trade Agreements, and Prices: New evidence," Papers 807, World Trade Institute.

    More about this item

    Keywords

    Food&Beverage Industry; Emerging Markets; Markets and Market Access; Labor Policies; Inequality;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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