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SPS measures and trade: Implementation matters

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  • Crivelli, Pramila
  • Gröschl, Jasmin

Abstract

Using SPS measures obtained from the SPS Information Management System of the WTO and controlling for zero trade flows, we find that SPS concerns reduce the probability of trade in agricultural and food products consistently. However, the amount of trade is positively affected by SPS measures conditional on market entry. This suggests that SPS measures constitute an effective market entry barrier. Additionally, we split SPS measures into requirements related to (i) conformity assessment, and (ii) product characteristics. Both types of measures are implemented by policy makers to achieve a desired level of health safety, yet, entail diverse trade costs. We find that conformity assessment measures hamper not only the likelihood to trade but also the amount of trade, while measures related to product characteristics do not affect the market entry decision, but have a strong positive impact on the trade volume. This suggests that trade outcomes crucially depend on the measure policy makers decide to implement.

Suggested Citation

  • Crivelli, Pramila & Gröschl, Jasmin, 2012. "SPS measures and trade: Implementation matters," WTO Staff Working Papers ERSD-2012-05, World Trade Organization (WTO), Economic Research and Statistics Division.
  • Handle: RePEc:zbw:wtowps:ersd201205
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    File URL: https://www.econstor.eu/bitstream/10419/57605/1/687991234.pdf
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    Cited by:

    1. Boza, Sofia & Fernandez, Felipe, 2015. "Is it only suitable for a few? WTO member participation in Specific Trade Concerns and Disputes on SPS/TBT according to their income levels," 2015 Conference, August 9-14, 2015, Milan, Italy 211368, International Association of Agricultural Economists.
    2. Eyal RONEN, 2017. "Quantifying the trade effects of NTMs: A review of the empirical literature," Journal of Economics and Political Economy, KSP Journals, vol. 4(3), pages 263-274, September.
    3. Boza, Sofía, 2013. "Assessing the impact of sanitary, phytosanitary and technical requirements on food and agricultural trade: what does current research tell us?," Papers 926, World Trade Institute.
    4. Boza, Sofía & Fernández, Felipe, 2014. "Development level and WTO member participation in Specific Trade Concerns (STCs) and Disputes on SPS/TBT," Papers 946, World Trade Institute.
    5. Sofía Boza & Jazmín Muñoz, 2017. "Factors underlying sanitary and phytosanitary regulation for food and agricultural imports notified by WTO members," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 26(6), pages 712-723, August.
    6. Boza, Sofía, 2016. "Determinants of SPS notification submissions for Latin American WTO members," Papers 970, World Trade Institute.
    7. Hoda El-Enbaby & Rana Hendy & Chahir Zaki, 2014. "Do Product Standards Matter for Margins of Trade In Egypt? Evidence from Firm-Level Data," Working Papers 840, Economic Research Forum, revised Jun 2014.
    8. Jasmin Katrin Gröschl, 2012. "Neuer Protektionismus – Gefahren für den Freihandel," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 65(15), pages 35-39, August.
    9. José Manuel Álvarez Zárate (Editor), 2016. "¿Hacia dónde va América Latina respecto al derecho económico internacional?," Books, Universidad Externado de Colombia, Facultad de Derecho, number 860.
    10. Kang, Jong Woo & Ramizo, Dorothea, 2017. "Impact of Sanitary and Phytosanitary Measures and Technical Barriers on International Trade," MPRA Paper 82352, University Library of Munich, Germany.
    11. DaSilva Glasgow, Dianna & Hosein, Roger, 2018. "Non-tariff Barriers to Trade: What Does the Experience of Guyanese Exporters of Food and Agriculture Products Reveal?," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 19(1), June.
    12. Ederington,Josh & Ruta,Michele, 2016. "Non-tariff measures and the world trading system," Policy Research Working Paper Series 7661, The World Bank.

    More about this item

    Keywords

    International Trade; Sanitary and Phytosanitary Measures; Conformity Assessment; Heckman Selection Model;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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