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Nontariff measures and product differentiation: Hormone‐treated beef trade from the United States and Canada to the European Union

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  • Byung Min Soon
  • Wyatt Thompson

Abstract

We investigate how a combination of the sanitary and phytosanitary (SPS) measure and product differentiation affects beef trade and the consequences for the United States (US)–European Union (EU) hormone‐treated beef trade dispute. We develop a partial equilibrium model to represent the global beef markets and product differentiation between non‐hormone‐treated beef, hormone‐treated beef, and other beef. The results show that removing the SPS measure increases EU hormone‐treated beef imports from the US and Canada and decrease beef consumption. In addition, EU hormone‐treated beef consumption and imports can be related to a few key indicators of product differentiation. The framework we develop can estimate EU hormone‐treated beef consumption and imports based on a minimum of parameters relating to product differentiation, thereby providing useful applied economic analysis of a key trade measure. Nous étudions comment une combinaison des mesures sanitaires et phytosanitaires (SPS) et la différenciation des produits affectent le commerce du bœuf et ses conséquences pour le différend commercial entre l'European Union et les États‐Unis concernant le bœuf traité aux hormones. Nous développons un modèle d'équilibre partiel pour représenter le marché mondial du bœuf et la différenciation des produits entre le bœuf non‐traité aux hormones, le bœuf traité aux hormones et les autres types de bœufs. Les résultats montrent que la suppression de la mesure SPS augmente les importations de bœuf traité aux hormones de l'UE en provenance des États‐Unis et du Canada et diminue la consommation de bœuf. De plus, la consommation et les importations de viande bovine traitée aux hormones dans l'UE peuvent être liées à quelques indicateurs clés de différenciation des produits. Le cadre que nous développons permet d'estimer la consommation et les importations de bœuf traité aux hormones dans l'UE sur la base d'un minimum de paramètres relatifs à la différenciation des produits, fournissant ainsi une analyse économique appliquée utile d'une mesure commerciale clé.

Suggested Citation

  • Byung Min Soon & Wyatt Thompson, 2019. "Nontariff measures and product differentiation: Hormone‐treated beef trade from the United States and Canada to the European Union," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 67(4), pages 363-377, December.
    • Handle: RePEc:bla:canjag:v:67:y:2019:i:4:p:363-377
    DOI: 10.1111/cjag.12200
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    Cited by:

    1. Kelvin Balcombe & Dylan Bradley & Iain Fraser, 2020. "The Economic Analysis of Consumer Attitudes Towards Food Produced Using Prohibited Production Methods: Do Consumers Really Care?," Studies in Economics 2004, School of Economics, University of Kent.
    2. Daria Loginova & Marco Portmann & Martin Huber, 2021. "Assessing the Effects of Seasonal Tariff‐rate Quotas on Vegetable Prices in Switzerland," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 607-627, June.
    3. Kelvin Balcombe & Dylan Bradley & Iain Fraser, 2021. "Do Consumers Really Care? An Economic Analysis of Consumer Attitudes Towards Food Produced Using Prohibited Production Methods," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 452-469, June.

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