Jouanjean, Marie-Agnes and Maur, Jean-Christophe and Shepherd, Ben (2011): Reputation matters: Spillover effects in the enforcement of US SPS measures.
Download (1MB) | Preview
This paper uses a novel dataset on US food import refusals to show that reputation is an important factor in the enforcement of sanitary and phyto-sanitary (SPS) measures. The strongest reputation effect comes from a country’s own history of compliance in relation to a particular product. The odds of at least one import refusal in the current year increase by over 300% if there was a refusal in the preceding year, after controlling for other factors. However, the data are also suggestive of the existence of two sets of spillovers. First, import refusals are less likely if there is an established history of compliance in relation to other goods in the same sector. Second, an established history of compliance in relation to the same product by neighboring countries also helps reduce the number of import refusals. These findings have important policy implications for exporters of agricultural products, particularly in middle-income countries. In particular, they highlight the importance of a comprehensive approach to upgrading standards systems, focusing on sectors rather than individual products, as well as the possible benefits that can come from regional cooperation in building SPS compliance capacity.
|Item Type:||MPRA Paper|
|Original Title:||Reputation matters: Spillover effects in the enforcement of US SPS measures|
|Keywords:||Product standards; SPS measures; Import refusals; Developing countries|
|Subjects:||F - International Economics > F1 - Trade > F15 - Economic Integration
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
|Depositing User:||Ben Shepherd|
|Date Deposited:||08. Dec 2011 18:34|
|Last Modified:||23. May 2015 02:37|
Alberini, A., E. Lichtenberg, D. Mancini, and G. Galinato. 2005. “Was it Something I Ate? Implementation of the FDA Seafood HACCP Program.” Working Paper No. 05-03, Department of Agricultural and Resource Economics, University of Maryland.
Allshouse, J., J. C. Buzby, D. Harvey, and D. Zorn, 2003. “International Trade and Seafood Safety”, chapter 7 in J. C. Buzby, editor International Trade and Food Safety: Economic Theory and Case Studies, Agricultural Economic Report No. (AER828), USDA Economic Research Service.
Baylis, K., A. Martens and L. Nogueira. 2009. “What drives import refusals?” American Journal of Agricultural Economics, 91(5): 1477-1483.
Baylis, K., L. Nogueira, and K. Pace. 2010. “Food Import Refusals: Evidence from the European Union.” American Journal of Agricultural Journal of Economics, advance access published December 15, 2010.
Baylis, K., L. Nogueira, and K. Pace. 2011. “Something Fishy? Tariffs and Non-Tariff Barriers in EU Seafood Trade”, The Selected Works of Kathy Baylis available at: http://works.bepress.com/kathy_baylis/34
Buzby, J.C., L.J. Unnevehr, and D. Roberts. 2008. “Food Safety and Imports: An Analysis of FDA-Related Import Refusal Reports.” Information Bulletin 39, USDA ERS.
Buzby, J.C. and D. Roberts. 2010. “Food Trade and Food Safety Violations: What Can We Lean from Import Refusal Data?” American Journal of Agricultural Journal of Economics, advance access published December 17, 2010.
Cadot, O., M. Jaud, and A. Suwa Eisenmann. 2009. “Do Food Scares Explain Supplier Concentration? An Analysis of EU Agri-Food Imports.” Discussion Paper 7431, CEPR.
Congress of the United States - Committee on Energy and Commerce, 2011. “Import Safety: Status of FDA’s Screening Efforts at the Border”. Opening Statement of Rep. Diana DeGette.
Disdier, A.C., L. Fontagné, and M. Mimouni. 2008. “The Impact of Regulations on Agricultural Trade: Evidence from the SPS and TBT Agreements.” American Journal of Agricultural Economics 90(2): 336-350.
Essaji, A. 2008. “Technical Regulations and Specialization in International Trade.” Journal of International Economics 76(2): 166-176.
Grossman, G., and E. Helpman. 1984. “Protection for Sale.” American Economic Review 84(4): 833-850.
Jouanjean, M.-A. 2011. “Standard, Reputation and Trade: Evidence from US Horticultural Imports Refusals.” Discussion Paper Series DP 281/2011, LICOS.
Jouanjean, M.-A., J.-C. Maur, and B. Shepherd. 2011. “US Phyto-Sanitary Restrictions: The Forgotten Prohibitive Non-Tariff Barrier.” Mimeo.
Karov, V., D. Roberts, and J.H. Grant. 2009. “A Preliminary Empirical Assessment of the Effect of Phytosanitary Regulations on US Fresh Fruit and Vegetable Imports.” Selected paper prepared for the Agricultural & Applied Economics Association’s 2009 AAEA & ACCI Joint Annual Meeting, Milwaukee, July 26-28 2009.
Kono, D.Y. 2006. “Optimal Obfuscation: Democracy and Trade Policy Transparency.” American Political Science Review 100(3): 369-384.
Maertens, M., and J.F.M. Swinnen. 2009. “Trade, Standards, and Poverty: Evidence from Senegal.” World Development 37(1): 161-178.
Maur, J.-C., and B. Shepherd. 2011. “Product Standards.” In J.-P. Chauffour and J.-C. Maur eds. Preferential Trade Agreement Policies for Development: A Handbook. Washington, D.C.: World Bank.
Schmit J. 2007. “U.S. Food Imports Outrun FDA Resources”. USA Today, March 18th 2007.
USDA Economic Research Service (ERS). 2011. http://www.ers.usda.gov/Data/FruitVegPhyto/data.htm.
U.S. Food and Drug Administration. 2011. Pathway to Global Product Safety and Quality, A Special Report. Washington, D.C.: FDA.
U.S. General Accounting Office. 2001. Food Safety and Security: Fundamental Changes Needed to Ensure Safe Food: Statement of Robert A. Robinson, Managing Director, Natural Resources and Environment, GAO-02-47T.
Widdowson, D. and S. Holloway. 2011. “Core Border Management Disciplines: Risk Based Compliance Management,” Chapter 6 in G. McLinden, E. Fanta, D. Widdowson, and T. Doyle eds. Border Management Modernization, Washington, DC: The World Bank.