IDEAS home Printed from https://ideas.repec.org/p/wii/wpaper/117.html
   My bibliography  Save this paper

Distinguishing Between Genuine and Non-Genuine Reasons for Imposing Technical Barriers to Trade: A Proposal Based on Cost-Benefit Analysis

Author

Listed:
  • Mahdi Ghodsi

    (The Vienna Institute for International Economic Studies, wiiw)

Abstract

This contribution provides a cost-benefit analysis in a partial equilibrium framework to investigate the welfare consequences of a prohibitive non-tariff measure (NTM) aimed at a foreign product with perceived negative characteristics. Two groups of consumers are distinguished one that is indifferent to the negative attributes of the foreign product and another that is concerned about them. Different scenarios concerning the welfare gains from the introduction of an NTM are explored. The results depend on consumer awareness and information policies pursued by the government. The theoretical model is illustrated with data on the consumption of cattle in eight northern states of the United States of America; this is related to Dispute Settlement 384 on Certain Country of Origin Labelling (COOL). The findings suggest that when the government informs consumers after an NTM that a harmful product is no longer available on the market, that favours domestic producers rather than consumers. Such a framework could assist the Dispute Settlement Body of the World Trade Organisation in determining the true motivations behind the imposition of an NTM.

Suggested Citation

  • Mahdi Ghodsi, 2015. "Distinguishing Between Genuine and Non-Genuine Reasons for Imposing Technical Barriers to Trade: A Proposal Based on Cost-Benefit Analysis," wiiw Working Papers 117, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:wpaper:117
    as

    Download full text from publisher

    File URL: https://wiiw.ac.at/distinguishing-between-genuine-and-non-genuine-reasons-for-imposing-technical-barriers-to-trade-a-proposal-based-on-cost-benefit-analysis-dlp-3668.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mohammad Mahdi Ghodsi, 2012. "Corruption and the Level of Trade Protectionism," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 30.
    2. Frank van Tongeren & John Beghin & Stéphane Marette, 2009. "A Cost-Benefit Framework for the Assessment of Non-Tariff Measures in Agro-Food Trade," OECD Food, Agriculture and Fisheries Papers 21, OECD Publishing.
    3. John Beghin & Anne-Célia Disdier & Stéphan Marette & Frank Van Tongeren, 2017. "Welfare costs and benefits of non-tariff measures in trade: a conceptual framework and application," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 7, pages 119-138, World Scientific Publishing Co. Pte. Ltd..
    4. Mohammad Mahdi Ghodsi & Jan J. Michałek, 2014. "Technical Barriers to Trade Notifications and Dispute Settlement of the WTO," Working Papers 2014-22, Faculty of Economic Sciences, University of Warsaw.
    5. S. A. Baba, 1997. "Democracies and Inefficiency," Economics and Politics, Wiley Blackwell, vol. 9(2), pages 99-114, July.
    6. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-850, September.
    7. repec:hal:pseose:halshs-00754587 is not listed on IDEAS
    8. Philip L. Paarlberg & John G. Lee, 1998. "Import Restrictions in the Presence of a Health Risk: An Illustration Using FMD," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 175-183.
    9. Brander, James A. & Spencer, Barbara J., 1985. "Export subsidies and international market share rivalry," Journal of International Economics, Elsevier, vol. 18(1-2), pages 83-100, February.
    10. Susanto, Dwi & Rosson, C. Parr, III & Henneberry, Shida Rastegari, 2008. "The Structure of U.S. Red Meat and Livestock Imports," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6824, Southern Agricultural Economics Association.
    11. Otsuki, Tsunehiro & Wilson, John S. & Sewadeh, Mirvat, 2001. "Saving two in a billion: : quantifying the trade effect of European food safety standards on African exports," Food Policy, Elsevier, vol. 26(5), pages 495-514, October.
    12. Mahdi Ghodsi, 2015. "Determinants of Specific Trade Concerns Raised on Technical Barriers to Trade," wiiw Working Papers 115, The Vienna Institute for International Economic Studies, wiiw.
    13. Kono, Daniel Y., 2006. "Optimal Obfuscation: Democracy and Trade Policy Transparency," American Political Science Review, Cambridge University Press, vol. 100(3), pages 369-384, August.
    14. Zhang, Feng & Epperson, James E. & Houston, Jack E., 2006. "Modeling Live Cattle Supply With Different Price Expectations," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35447, Southern Agricultural Economics Association.
    15. Mahdi Ghodsi, 2015. "The Role of Specific Trade Concerns Raised on TBTs in the Import of Products to the EU, USA and China," wiiw Working Papers 116, The Vienna Institute for International Economic Studies, wiiw.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gründler, Klaus & Hillman, Arye L., 2021. "Ambiguous protection," European Journal of Political Economy, Elsevier, vol. 68(C).
    2. Edward Martey & Edward Ebo Onumah & Justina Adwoa Onumah & Dela‐Dem Doe Fiankor, 2024. "Non‐tariff measures and household welfare: Evidence from Ghana," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(2), pages 1150-1169, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mahdi Ghodsi, 2023. "Salmonella Program in the European Union and the Trade Dispute with Brazil at the World Trade Organisation: a Partial Equilibrium Framework," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 131(1), pages 167-212.
    2. M. Mahdi Ghodsi, 2013. "Welfare Analysis of a Prohibitive NTM in a Society with a Proportion of Concerned Consumers," Working Papers 2013-12, Faculty of Economic Sciences, University of Warsaw.
    3. Payam Elhami & Mahdi Ghodsi & Robert Stehrer, 2021. "Quality of Goods Imports: Which Role for Non-tariff Measures?," wiiw Policy Notes 46, The Vienna Institute for International Economic Studies, wiiw.
    4. Mahdi Ghodsi & Jan Jakub Michalek, 2016. "Technical Barriers To Trade Notifications And Dispute Settlement Within The Wto," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 11(2), pages 219-249, June.
    5. M. Mahdi Ghodsi, 2018. "Determinants of specific trade concerns raised on technical barriers to trade EU versus non-EU," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 45(1), pages 83-128, February.
    6. Maria Cipollina & Federica Demaria, 2020. "The Trade Effect of the EU’s Preference Margins and Non-Tariff Barriers," JRFM, MDPI, vol. 13(9), pages 1-20, September.
    7. Annalisa Zezza & Federica Demaria & Maria Rosaria Pupo d'Andrea & Jo Swinnen & Giulia Meloni & Senne Vandevelde & Alessandro Olper & Daniele Curzi & Valentina Raimondi & Sophie Drogue, 2018. "Research for AGRI Committee - Agricultural trade: assessing reciprocity of standards," Working Papers hal-02787948, HAL.
    8. Lili Yan ING & Olivier CADOT, 2017. "Remaking Ad valorem equivalents of non-tariff measures in ASEAN," Working Papers DP-2017-09, Economic Research Institute for ASEAN and East Asia (ERIA).
    9. Olivier CADOT & Lili Yan ING, 2017. "Ad-valorem equivalents of NTMs in ASEAN," Working Papers P203, FERDI.
    10. Mahdi Ghodsi, 2015. "Determinants of Specific Trade Concerns Raised on Technical Barriers to Trade," wiiw Working Papers 115, The Vienna Institute for International Economic Studies, wiiw.
    11. Sturm, Daniel & Ulph, Alistair, 2002. "Environment, trade, political economy and imperfect information: a survey," Discussion Paper Series In Economics And Econometrics 0204, Economics Division, School of Social Sciences, University of Southampton.
    12. Kim, Young-Han & Kim, Sang-Kee, 2012. "Welfare effects of competitive lobbying efforts in international oligopoly markets," Economic Modelling, Elsevier, vol. 29(3), pages 614-620.
    13. Subhayu Bandyopadhyay & Eun‐Soo Park & Howard J. Wall, 2004. "Endogenous Export Subsidies And Welfare Under Domestic Cost Heterogeneity," Economics and Politics, Wiley Blackwell, vol. 16(3), pages 347-366, November.
    14. Rachel Brewster & Claire Brunel & Anna Maria Mayda, 2015. "Trade in Environmental Goods: A Review of the WTO Appellate Body’s Ruling in US — Countervailing Measures (China)," RSCAS Working Papers 2015/69, European University Institute.
    15. Tuinstra, Jan & Wegener, Michael & Westerhoff, Frank, 2014. "Positive welfare effects of trade barriers in a dynamic partial equilibrium model," Journal of Economic Dynamics and Control, Elsevier, vol. 48(C), pages 246-264.
    16. Crivelli, Pramila & Gröschl, Jasmin, 2012. "SPS measures and trade: Implementation matters," WTO Staff Working Papers ERSD-2012-05, World Trade Organization (WTO), Economic Research and Statistics Division.
    17. Johannes Urpelainen, 2012. "How Does Democratic Accountability Shape International Cooperation?," Conflict Management and Peace Science, Peace Science Society (International), vol. 29(1), pages 28-55, February.
    18. Kyle Bagwell & Robert W. Staiger, 2012. "Profit Shifting And Trade Agreements In Imperfectly Competitive Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(4), pages 1067-1104, November.
    19. Weinberg, Joe, 2018. "Where’s the Pork?: The Political Economy of the US Farm Bill," 2018 Annual Meeting, August 5-7, Washington, D.C. 273867, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    welfare; trade policy; non-tariff measures; technical barriers to trade; dispute settlement;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wii:wpaper:117. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Customer service (email available below). General contact details of provider: https://edirc.repec.org/data/wiiwwat.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.