Affiliation:
1. TERI School of Advanced Studies, New Delhi, Delhi, India.
Abstract
Over the past two and half decades, rising non-tariff barriers, such as SPS and TBT measures appear to negate any benefits accruing from declining tariffs. The adoption of higher standards reflects efforts, generally by developed nations, towards protecting both human and environmental health. However, the burden of compliance falls on the upstream players of the supply chain, mostly located in the Global South. In this article, we explore if imposing food standards has a differential impact on the exporters of marine products from high-income and low-income countries. Using panel data analysis based on bilateral trade between 50 exporters and 188 importers of marine goods at HS6 level codes from 1995 to 2018, we conclude that imposing food standards has a significantly negative impact on exports of marine industries. Moreover, it appears that after 2008, food standards have become relatively more stringent, and their impact has varied based on economic size of the exporter. Relatively richer countries were able to expand their exports in the presence of standards. However, marine exports of poorer nations reduced. This contrasting impact of food standards on the high- and low-income countries significantly changed the pattern of global marine trade. JEL Codes: F1, F14, Q17
Subject
Marketing,General Economics, Econometrics and Finance,Business and International Management
Reference45 articles.
1. Alia D. Y., Zheng Y., Kusunose Y. & Reed M. R. (2017, July 30–August 1). Trade effects of food regulations and standards: Assessing the impact of SPS measures on market structure. Paper presented at Annual Meeting of Agricultural and Applied Economics Association, Chicago, Illinois, USA.
2. Standards as Barriers Versus Standards as Catalysts: Assessing the Impact of HACCP Implementation on U.S. Seafood Imports
3. Gravity for Dummies and Dummies for Gravity Equations
4. New! Improved? The Transformation of the Global Agrifood System*