The Impact of Regulations on Agricultural Trade: Evidence from SPS and TBT Agreements

Abstract

The paper provides an analysis of the structure and the importance of SPS and TBT measures in agricultural trade and tries to identify the division between genuine protection of consumers, flora and fauna and non tariff barriers. The paper covers all notifying countries and products at the HS6 digit level. The gravity equation controls for the bilateral applied tariff protection and uses ad-valorem equivalents of SPS and TBT measures. Results suggest that these measures have on the whole a negative mpact on OECD imports. OECD exporters are not significantly affcted by SPS and TBTs in their exports to other OECD countries while developing and least developed countries' exports are negatively and significantly affected.