Wood Packaging Sps Regulations: Effects on U.S. Imports and Containerized Trade
Posted: 5 Feb 2010
Date Written: June 4, 2007
International standards for wood packaging material used in international trade were fully implemented by the United States and other countries in September, 2006. This paper analyzes the possible effects of these regulations (treatment of wood pallets), and the effects of any possible U.S. requirements for alternative packaging, on U.S. imports in a multi-commodity context using the Global Trade Analysis Project (GTAP) model. Such an analysis should be of interest to economists, foresters, and environmentalists. It may be of particular interest to Chinese researchers, as China is the largest source of U.S. containerized imports. The paper includes a database to estimate the use of pallets in U.S. imports. Increased pallet costs were incorporated into the model through the international trade and transport margins. Although the effects appear to be small, the data and model results indicate that agricultural products might be the most affected with increased pallet costs.
This paper was presented to the International Agricultural Trade Research Consortium, Beijing, China
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