Santeramo, Fabio and Lamonaca, Emilia (2021): Standards and regulatory cooperation in Regional Trade Agreements: What the effects on trade?
Preview |
PDF
MPRA_paper_112002.pdf Download (693kB) | Preview |
Abstract
The agenda of trade negotiation in the agri-food sector is characterised by an exponential increase of Sanitary and Phytosanitary (SPS) measures and of Regional Trade Agreements (RTAs). Their joint effect on trade is puzzling and still an open empirical question. Once assessed the trade effect of standards provided in SPS measures, the study evaluates how regulatory cooperation and commitments beyond WTO requirements affect trade between signatories of RTAs. Trade between signatories seems obstructed by non discriminatory (multilateral) SPS measures. However, SPS-specific commitments negotiated in joint SPS committees within RTAs tend to create conditions to meet standards, contributing to boost trade.
Item Type: | MPRA Paper |
---|---|
Original Title: | Standards and regulatory cooperation in Regional Trade Agreements: What the effects on trade? |
Language: | English |
Keywords: | RTA, SPS measures, Agri-food, Trade policy |
Subjects: | F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O24 - Trade Policy ; Factor Movement Policy ; Foreign Exchange Policy O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O57 - Comparative Studies of Countries Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q17 - Agriculture in International Trade Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q18 - Agricultural Policy ; Food Policy |
Item ID: | 112002 |
Depositing User: | Prof. Fabio Gaetano Santeramo |
Date Deposited: | 16 Feb 2022 16:19 |
Last Modified: | 16 Feb 2022 16:19 |
References: | Agnosteva, D.E., Anderson, J.E., and Y.V. Yotov. 2019. Intra-national trade costs: Assaying regional frictions. European Economic Review 112: 32-50. Anderson, J.E., and E. Van Wincoop. 2003. Gravity with gravitas: A solution to the border puzzle. American Economic Review 93(1): 170-192. Baier, S.L., and J.H. Bergstrand. 2007. Do free trade agreements actually increase members’ international trade? Journal of International Economics 71(1): 72-95. Baldwin, R.E. 2006. Managing the noodle bowl. CEPR Discussion Paper No. 5561, Centre for Economic Policy Research, London. Baldwin, R.E. 2008. Managing the noodle bowl: The fragility of East Asian regionalism. The Singapore Economic Review 53(03): 449-478. Baldwin, R., and D. Taglioni. 2006. Gravity for dummies and dummies for gravity equations. Working Paper 12516, National Bureau of Economic Research (NBER), Cambridge, MA. Bhagwati, J. 1991. The world trading system at risk. Princeton, NJ: Princeton University Press. Bhagwati, J., and U.T. Policy. 1995. The infatuation with FTAs. Columbia University, Department of Economics. Beghin, J.C., Maertens, M., and J. Swinnen. 2015. Nontariff measures and standards in trade and global value chains. Annual Review of Resource Economics 7(1): 425-450. Beghin, J.C., and H. Schweizer. 2020. Agricultural Trade Costs. Applied Economic Perspectives and Policy 43(2): 500-530. Cadot, O., and J. Gourdon. 2016. Non-tariff measures, preferential trade agreements, and prices: new evidence. Review of World Economics 152(2): 227-249. Cadot, O., and L.Y. Ing. 2019. How restrictive are ASEAN’s rules of origin? In East Asian Integration (pp. 143-170). Routledge. Cadot, O., Estevadeordal, A., Suwa-Eisenmann, A., Eisenmann, A.S., and T. Verdier. (Eds.). (2006). The origin of goods: Rules of origin in regional trade agreements. Oxford University Press on Demand. Çakır, M., Boland, M.A., and Y. Wang. 2018. The economic impacts of 2015 Avian influenza outbreak on the US Turkey industry and the loss mitigating role of free trade agreements. Applied Economic Perspectives and Policy 40(2): 297-315. Costinot, A., and A. Rodríguez-Clare. 2014. Trade theory with numbers: Quantifying the consequences of globalization. In Handbook of international economics (Vol. 4, pp. 197-261). Elsevier. Crivelli, P., and J. Gröschl. 2016. The impact of sanitary and phytosanitary measures on market entry and trade flows. The World Economy 39(3): 444-473. Dal Bianco, A., Boatto, V.L., Caracciolo, F., and F.G. Santeramo. 2016. Tariffs and non-tariff frictions in the world wine trade. European Review of Agricultural Economics 43(1): 31-57. Devadason, E.S., Chandran, V.G.R., and K. Kalirajan. 2018. Harmonization of food trade standards and regulations in ASEAN: the case of Malaysia's food imports. Agricultural Economics 49(1): 97-109. de Faria, R.N., and C. Wieck. 2015. Empirical evidence on the trade impact of asynchronous regulatory approval of new GMO events. Food Policy 53: 22-32. Dhingra, S., Freeman, R., and H. Hanwei. 2021. The trade and welfare benefits of deep trade agreements. VoxEU.org, 21 January. Disdier, A.C., Fontagné, L., and O. Cadot. 2015. North-South standards harmonization and international trade. The World Bank Economic Review 29(2): 327-352. Drogué, S., and F. DeMaria. 2012. Pesticide residues and trade, the apple of discord? Food Policy 37(6): 641-649. Egger, P.H., and S. Nigai. 2015. Structural gravity with dummies only: Constrained ANOVA-type estimation of gravity models. Journal of International Economics 97(1): 86-99. Egger, P.H., and K.E. Staub. 2016. GLM estimation of trade gravity models with fixed effects. Empirical Economics 50(1): 137-175. Feenstra, R.C. 2016. Advanced International Trade: Theory and Evidence, 2nd Princeton: Princeton University Press. Ferro, E., Otsuki, T., and J.S. Wilson. 2015. The effect of product standards on agricultural exports. Food Policy 50: 68-79. Fiankor, D.D.D., Haase, O.K., and B. Brümmer. 2021. The Heterogeneous Effects of Standards on Agricultural Trade Flows. Journal of Agricultural Economics 72(1): 25-46. Garcia‐Alvarez‐Coque, J.M., Taghouti, I., and V. Martinez‐Gomez. 2020. Changes in aflatoxin standards: Implications for EU border controls of nut imports. Applied Economic Perspectives and Policy 42(3): 524-541. Grant, J.H. 2013. Is the growth of regionalism as significant as the headlines suggest? Lessons from agricultural trade. Agricultural Economics 44(1): 93-109. Grant, J.H., and S. Arita. 2016. Revealed Concerns: A New Look at the Impact of Sanitary and Phytosanitary Measures on Agri-Food Trade (No. 333-2016-14775). Selected Paper prepared for presentation at the 2016 Annual Meeting of the Agricultural & Applied Economics Association, Boston, MA, July 31‐August 2. Grant, J., and S. Arita. 2017. Sanitary and phyto-sanitary measures: Assessment, measurement, and impact. IATRC Commissioned Paper, No. 938-2017-1828. Grant, J.H., and K.A. Boys. 2012. Agricultural trade and the GATT/WTO: Does membership make a difference? American Journal of Agricultural Economics 94(1): 1-24. Grant, J.H., Ning, X., and E.B. Peterson. 2018. Trade elasticities and trade disputes: New evidence from tariffs and relative preference margins. Policy Report CAT-2018-07, Center for Agricultural Trade. Grant, J.H., and D.M. Lambert. 2008. Do regional trade agreements increase members’ agricultural trade? American Journal of Agricultural Economics 90(3): 765-782. Grossman, G.M., McCalman, P., and R.W. Staiger. 2021. The “New” Economics of Trade Agreements: From Trade Liberalization to Regulatory Convergence? Econometrica 89(1): 215-249. Head, K., and T. Mayer. 2014. Gravity equations: Workhorse, toolkit, and cookbook. In Handbook of international economics (Vol. 4, pp. 131-195). Elsevier. Henson, S., and S. Jaffee. 2008. Understanding developing country strategic responses to the enhancement of food safety standards. The World Economy 31(4): 548-568. Hoekman, B. 2002. Strengthening the global trade architecture for development: the post Doha agenda. World Trade Review 1(1): 23-45. Hooker, N.H. 1999. Food safety regulation and trade in food products. Food Policy 24(6): 653-668. Jayasinghe, S., and R. Sarker. 2008. Effects of regional trade agreements on trade in agrifood products: Evidence from gravity modeling using disaggregated data. Review of Agricultural Economics/Applied Economic Perspectives and Policy 30(1): 61-81. Karemera, D., Xiong, B., and L. Whitesides. 2020. A State-Level Analysis of the Impact of a US-EU Harmonization of Food Safety Standards on US Exports of Fruits and Vegetables. Applied Economic Perspectives and Policy 42(4): 856-869. Koo, W.W., Kennedy, P.L., and A. Skripnitchenko. 2006. Regional preferential trade agreements: Trade creation and diversion effects. Applied Economic Perspectives and Policy 28(3): 408-415. Lambert, D., and S. McKoy. 2009. Trade creation and diversion effects of preferential trade associations on agricultural and food trade. Journal of Agricultural Economics 60(1): 17-39. Lejárraga, I., and B. Shepherd. 2013. Quantitative evidence on transparency in regional trade agreements. OECD Trade Policy Papers 153, Paris, OECD Publishing. Mattoo, A., Rocha, N., and M. Ruta. 2020. Handbook of deep trade agreements. Washington, DC: World Bank. Murina, M., and A. Nicita. 2017. Trading with Conditions: The Effect of Sanitary and Phytosanitary Measures on the Agricultural Exports from Low‐income Countries. The World Economy 40(1): 168-181. OECD. 2011. Regional Trade Agreements - Treatment of Agriculture. OECD Food, Agriculture and Fisheries Papers, No. 44, OECD Publishing, Paris. OECD. 2015. Regional trade agreements and agriculture. OECD Food, Agriculture and Fisheries Papers, No. 79, OECD Publishing, Paris. Olivero, M.P., and Y.V. Yotov. 2012. Dynamic gravity: endogenous country size and asset accumulation. Canadian Journal of Economics/Revue canadienne d'économique 45(1): 64-92. Peci, J., and A.I. Sanjuán. 2020. The dual trade impact of non-tariff measures: an empirical assessment of China’s pork imports. European Review of Agricultural Economics 47(5): 1716-1739. Santeramo, F.G., and E. Lamonaca. 2019. The Effects of Non‐tariff Measures on Agri‐food Trade: A Review and Meta‐analysis of Empirical Evidence. Journal of Agricultural Economics 70(3): 595-617. Santeramo, F.G., Lamonaca, E., Nardone, G., and A. Seccia. 2019. The benefits of country-specific non-tariff measures in world wine trade. Wine Economics and Policy 8(1): 28-37. Santeramo, F.G. 2019. On non-tariff measures and changes in trade routes: from North-North to South-South trade? IATRC Commissioned Paper, No. 938-2019-1580. Sarker, R., and S. Jayasinghe. 2007. Regional trade agreements and trade in agri‐food products: evidence for the European Union from gravity modeling using disaggregated data. Agricultural Economics 37(1): 93-104. Sheldon, I.M., Chow, D.C., and W. McGuire. 2018. Trade liberalization and constraints on moves to protectionism: Multilateralism vs. regionalism. American Journal of Agricultural Economics 100(5): 1375-1390. Schmidt, J., and W. Steingress. 2019. No double standards: quantifying the impact of standard harmonization on trade. Bank of Canada Staff Working Paper No. 2019-36. Sparling, D.H., and J.A. Caswell. 2006. Risking market integration without regulatory integration: the case of NAFTA and BSE. Review of Agricultural Economics/Applied Economic Perspectives and Policy 28(2): 212-228. Sun, L., and M.R. Reed. 2010. Impacts of free trade agreements on agricultural trade creation and trade diversion. American Journal of Agricultural Economics 92(5): 1351-1363. Swinnen, J. 2016. Economics and politics of food standards, trade, and development. Agricultural Economics 47(S1): 7-19. Swinnen, J. 2017. Some dynamic aspects of food standards. American Journal of Agricultural Economics 99(2): 321-338. UNCTAD. 2012. International Classification of Non-Tariff measures, February 2012 version (UNCTAD/DITC/TAB/2012/2). New York, Geneva: United Nations. Viner, J. 1950. The customs union issue. New York: Carnegie Endowment for International Peace. Wieck, C., and B. Rudloff. 2020. Bilateral positive integration: Different strategies for regulatory cooperation in the TTIP. In Positive Integration-EU and WTO Approaches Towards the “Trade and” Debate (pp. 17-34). Springer, Cham. Winchester, N., Rau, M.L., Goetz, C., Larue, B., Otsuki, T., Shutes, K., Wieck, C., H.L., Burnquist, H.L., Pinto de Souza, M.J., and R.N. de Faria. 2012. The impact of regulatory heterogeneity on agri‐food trade. The World Economy 35(8): 973-993. Yotov, Y.V., Piermartini, R., Monteiro, J.A., and M. Larch. 2016. An advanced guide to trade policy analysis: The structural gravity model. Geneva: World Trade Organization. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/112002 |