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The Impact of Regulatory Heterogeneity on Agri‐food Trade

2012; Wiley; Volume: 35; Issue: 8 Linguagem: Inglês

10.1111/j.1467-9701.2012.01457.x

1467-9701

Niven Winchester, Marie‐Luise Rau, Christian Goetz, Bruno Larue, Tsunehiro Otsuki, Karl Shutes, Christine Wieck, Heloísa Lee Burnquist, Maurício Jorge Pinto de Souza, Rosane Nunes de Faria,

Global Trade and Competitiveness

Abstract We estimate the impact of regulatory heterogeneity on agri‐food trade using a gravity analysis that relies on detailed data on non‐tariff measures (NTMs) collected by the NTM‐Impact project. The data cover a broad range of import requirements for agricultural and food products for the EU and nine of its major trade partners. We find that trade is significantly reduced when importing countries have stricter maximum residue limits (MRLs) for plant products than exporting countries. For most other measures, due to their qualitative nature, we were unable to infer whether the importer has stricter standards relative to the exporter, and we do not find a robust relationship between these measures and trade. Our findings suggest that, at least for some import standards, harmonising regulations will increase trade. We also conclude that tariff reductions remain an effective means to increase trade even when NTMs abound.