The Impact of Regulations on Agricultural Trade: Evidence from SPS and TBT Agreements

42 Pages Posted: 4 Aug 2008

See all articles by Anne-Celia Disdier

Anne-Celia Disdier

National Institute for Agricultural Research (INRA) - UMR Economie Publique

Lionel Fontagne

University of Paris 1 Panthéon Sorbonne; Paris School of Economics; CEPII

Mondher Mimouni

International Trade Centre (UNCTAD/WTO)

Multiple version iconThere are 2 versions of this paper

Date Written: February 1, 2007

Abstract

According to WTO rules, countries are allowed to adopt regulations under the Sanitary and Phyto-Sanitary (SPS) and Technical Barriers to Trade (TBT) agreements in order to protect human, animal and plant health as well as environment, wildlife and human safety. Our paper offers an analysis of the structure and the importance of these measures in agricultural trade. We cover all notifying countries and products at the HS6 digit level. Results of the inventory approach show that EU countries have the lowest coverage ratios of all OECD countries except South Korea and Turkey. Using gravity equation, we also estimate the stringency of such measures. In contrast with previous works, our equation controls for the bilateral applied tariff protection and uses ad valorem equivalents of SPS and TBT measures. Our results first suggest that these measures have on the whole a negative impact on OECD imports. When we consider different groups of exporting countries, we show that OECD exporters are not significantly affected by SPS and TBTs in their exports to other OECD countries while developing and least developed countries' exports are negatively and significantly affected. Furthermore, EU imports seem to be more negatively influenced by tariffs and SPS & TBTs than imports of other OECD countries. Finally, our sectoral analysis suggests an equal distribution of negative and positive impacts of NTBs on agricultural trade.

Keywords: agriculture, sanitary and phyto-sanitary norms, technical barriers to trade

JEL Classification: F13, Q17

Suggested Citation

Disdier, Anne-Celia and Fontagne, Lionel and Mimouni, Mondher, The Impact of Regulations on Agricultural Trade: Evidence from SPS and TBT Agreements (February 1, 2007). Available at SSRN: https://ssrn.com/abstract=1194969 or http://dx.doi.org/10.2139/ssrn.1194969

Anne-Celia Disdier (Contact Author)

National Institute for Agricultural Research (INRA) - UMR Economie Publique ( email )

Centre de Grignon
BP01
Thiverval-Grignon, 78850
France

Lionel Fontagne

University of Paris 1 Panthéon Sorbonne ( email )

Maison des Sciences Economiques
106-112 Bd de l'Hôpital
Paris, 75013
France
+33 1 44 07 89 94 (Phone)
+33 1 53 68 55 01 (Fax)

HOME PAGE: http://lionelfontagne.weebly.com/

Paris School of Economics ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France
+33 1 44 07 89 94 (Phone)

HOME PAGE: http://lionelfontagne.weebly.com/

CEPII ( email )

9 Rue Georges Pitard
Paris, 75015
France
+33 1 53 68 55 06 (Phone)

HOME PAGE: http://lionelfontagne.weebly.com/

Mondher Mimouni

International Trade Centre (UNCTAD/WTO) ( email )

Palais des Nations
Office E 8074
Geneva, 1211
Switzerland

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