Location of Repository

Are Standards Always Protectionist?

By Stephan Marette and John C. Beghin

Abstract

We analyze the effects of a domestic standard that reduces an externality associated with the consumption of the good targeted by the standard, using a model in which foreign and domestic producers compete in the domestic good market. Producers can reduce expected damage associated with the externality by incurring a cost that varies by source of origin. Despite potential protectionism, the standard is useful in correcting the consumption externality in the domestic country. Protectionism occurs when the welfare-maximizing domestic standard is higher than the international standard maximizing welfare inclusive of foreign profits. The standard is actually anti-protectionist when foreign producers are much more efficient at addressing the externality than are domestic producers. Possible exclusion of domestic or foreign producers arises with large standards, which may alter the classification of a standard as protectionist or non-protectionist. The paper provides important implications for the estimation and use of tariff equivalents of nontariff barriers. JEL Classification Code: F13externality; nontariff barriers; protectionism; safety; standard; tariff equivalent

OAI identifier:

Suggested articles

Preview

Citations

  1. (1995). Asymmetric International Minimum Quality Standards and Vertical Differentiation.
  2. (2003). Eco-Labelling Scheme, Environmental Protection, and Protectionism.
  3. (1997). Inefficiency of Subgame Optimal Entry Regulation.
  4. (1998). Measurement of Nontariff Barriers.
  5. (1995). Measuring the Environmental Consequences of Trade Policy: A Nonmarket CGE Analysis.
  6. (1998). Non-Tariff Trade Barriers and Consumers’ Information: The Case of the EU-US Trade Dispute over Beef.
  7. (1970). Nontariff Distortions of International Trade.
  8. (1989). Oligopolistic Competition and International Trade: Quantity and Quality Restrictions.
  9. (2005). Private Agri-Food Standards: Implications for Food Policy and the Agri-Food System.
  10. (2006). Product Standards, Trade Disputes, and Protectionism.
  11. (1983). Products Liability and Consumer Misperceptions and Market Power.
  12. (2005). Quantitative Methods for Assessing the effects of NonTariff Measures and Trade Facilitation. Singapore:
  13. (2001). Quantitative Policy Analysis of Sanitary Phytosanitary and Technical Barriers to Trade.
  14. (1992). Revisiting Minimum Quality Standards.
  15. (2000). Standards and Protection.
  16. (1994). Strategic Environmental Policy and International Trade.
  17. (2003). The Measurement of Environmental and Resource Values: Theory and Methods, second edition.
  18. (1987). Trade Policy and Its Impact on the Quality of Imports.

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.