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The Impact of Regulations on Agricultural Trade: Evidence from the SPS and TBT Agreements
Author(s) -
Disdier Anne-Célia,
Fontagné Lionel,
Mimouni Mondher
Publication year - 2008
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1111/j.1467-8276.2007.01127.x
Subject(s) - technical barriers to trade , international trade , agriculture , gravity equation , international economics , gravity model of trade , developing country , economics , business , trade barrier , bilateral trade , economic growth , geography , archaeology , china
According to World Trade Organization rules, countries may adopt regulations under the Agreements on Sanitary and Phyto‐Sanitary (SPS) and Technical Barriers to Trade (TBT). We analyze the structure of these measures in agricultural trade. The inventory approach suggests that European countries have among the lowest coverage ratios of all OECD countries. Using a gravity equation, we also estimate their stringency. Our results suggest that they significantly reduce developing countries' exports to OECD countries, but do not affect trade between OECD members. Furthermore, European imports are more negatively influenced by SPS and TBTs than imports of other OECD countries.