Template-Type: ReDIF-Paper 1.0

Author-Name:  Foletti, Liliana
Author-Name-First: Liliana
Author-Name-Last: Foletti

Author-Name:  MILE 02, Anirudh Shingal
Author-Name-First: Anirudh Shingal
Author-Name-Last: MILE 02

Title: Trade effects of MRL harmonization in the EU
Abstract: Combining original data on Maximum Residue Levels (MRLs) in pesticides with bilateral trade and standard gravity variables over 2005-11, this paper identifies the effect of the complete harmonization of MRLs across EU member states on inter- and intra-EU agri-food trade at both margins. We make an empirical contribution to the impact assessment of standards literature by identifying the trade effects of two different harmonization dynamics in health-related standards: complete harmonization of domestic and foreign regulation (intra-EU members) and harmonization of standards between a large number of foreign markets (non EU-members). Significantly, we find that the harmonization of MRL standards may have led to greater trade at both margins for all different sub-samples, even those including developing country exporters. Our results also suggest that having different MRL regulations is mostly costly at the extensive margin; this is found to be especially true for intra-EU15 agri-trade.
Creation-Date:  2014-05-27
File-URL: http://www.wti.org/media/filer_public/f2/d7/f2d7ba95-07e8-4df7-89bf-88d6fe7af9d9/05_trade_effects_of_mrl_harmonization.pdf
File-Format: Application/pdf
File-Function: First version
Handle: RePEc:wti:papers:720