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Is the European Union providing a regulatory model for other countries?

Author

Listed:
  • Herghelegiu, Cristina

    (European Commission, Directorate-General for Internal Market, Industry, Entrepreneurship and SME, Chief Economist Unit)

  • Martin, Fernando

    (LICOS - Centre for Institutions and Economic Performance, KU Leuven)

Abstract
We examine whether the European Union (EU) is providing a model for other countries for product requirements aimed at protecting health, safety, and the environment. The analysis draws upon information on detailed categories of sanitary and phytosanitary (SPS) measures and technical barriers to trade (TBTs) introduced on specific products by 86 countries across the world over the 2009-2019 period. First, we examine whether the existence of requirements within a given product- level SPS/TBT category in other countries is associated with the prior existence of requirements within the same product-level SPS/TBT category in the EU, and document a positive and significant correlation. Second, we delve into potential mechanisms likely to explain the subsequent adoption of requirements by other countries within the same product-level SPS/TBT categories as the EU. The results indicate the presence of both market-driven forces, such as the importance of the EU as an export market for other countries, and treaty-driven forces, such as the existence of trade agreements between the EU and other countries. Finally, we show that the EU’s role in providing a regulatory model for other countries for product requirements aimed at protecting health, safety, and the environment is (1) predominant when compared to the United States or China, and (2) reinforced in the area of environmental protection.

Suggested Citation

  • Herghelegiu, Cristina & Martin, Fernando, 2023. "Is the European Union providing a regulatory model for other countries?," Single Market Economics Papers WP2023/15, Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs (European Commission), Chief Economist Team.
    • Handle: RePEc:bda:wpsmep:wp2023/15
    DOI: 10.2873/100819
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    References listed on IDEAS

    as
    1. Michael O. Moore & Maurizio Zanardi, 2011. "Trade Liberalization and Antidumping: Is There a Substitution Effect?," Review of Development Economics, Wiley Blackwell, vol. 15(4), pages 601-619, November.
    2. Kuenzel, David J. & Sharma, Rishi R., 2021. "Preferential trade agreements and MFN tariffs: Global evidence," European Economic Review, Elsevier, vol. 138(C).
    3. Hoekman, Bernard & Nicita, Alessandro, 2011. "Trade Policy, Trade Costs, and Developing Country Trade," World Development, Elsevier, vol. 39(12), pages 2069-2079.
    4. Zhaohui Niu & Chang Liu & Saileshsingh Gunessee & Chris Milner, 2018. "Non-tariff and overall protection: evidence across countries and over time," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(4), pages 675-703, November.
    5. Michael Bratt, 2017. "Estimating the bilateral impact of nontariff measures on trade," Review of International Economics, Wiley Blackwell, vol. 25(5), pages 1105-1129, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    European Union; Product Requirements; Health; Safety; Environment; International Trade;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law

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