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Discriminatory Consequences of Non-discriminatory Standards

Aaditya Mattoo

Journal of Economic Integration, 2001, vol. 16, 78-105

Abstract:

This paper shows that environmental, labour and other standards can be effective strategic policy instruments even when they are strictly non-discriminatory. This is because standards can be set which the foreign producer optimally chooses not to meet, allowing the domestic producer to monopolize the standardized segment of the market. Thus, it is important for policy to consider how much scope there should be for the imposition of unilaterally determined standards - which could impact negatively on trading partners even when they are non-discriminatory-rather than internationally negotiated standards.

Keywords: Standards; Oligopoly; Strategic Trade Policy; Environment (search for similar items in EconPapers)
JEL-codes: F12 L13 (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (6)

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Working Paper: Discriminatory consequences of non-discriminatory standards (1996) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:0155

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