Quantifying the trade impact of SPS and TBTs with product-level structural gravity

Fabio Artuso, Julian L. Clarke, Lionel Fontagné, Mahdi Ghodsi and Gianluca Santoni

No 273, wiiw Working Papers from The Vienna Institute for International Economic Studies, wiiw

Abstract: Non-tariff measures (NTMs), especially sanitary and phytosanitary (SPS) measures and technical barriers to trade (TBTs), have become crucial components of climate, industrial, and regulatory policy, impacting the majority of global trade. However, quantifying their effects on trade is challenging because NTMs are usually non-discriminatory and challenging to identify in standard gravity frameworks. Using a multi-stage structural gravity estimation strategy combined with a control-function correction for endogeneity, we estimate the trade elasticities and ad valorem equivalents of NTMs at the HS6 level for over 5,000 products. Our results reveal significant heterogeneity in NTM trade costs, especially in environmentally relevant sectors, such as clean technologies and electric vehicles. These estimates can inform regulatory impact assessments and general-equilibrium analyses of climate-aligned trade policies.

Keywords: Non-tariff measures: Ad valorem equivalents; Environmental goods; Critical minerals (search for similar items in EconPapers)
JEL-codes: F13 F14 F18 (search for similar items in EconPapers)
Pages: 24 pages including 3 Tables and 3 Figures
Date: 2026-03
New Economics Papers: this item is included in nep-min
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