Salmonella Program in the European Union and the Trade Dispute with Brazil at the World Trade Organisation: a Partial Equilibrium Framework

Mahdi Ghodsi

Rivista Internazionale di Scienze Sociali, 2023, vol. 131, issue 1, 167-212

Abstract: This contribution provides a cost-benefit analysis in a partial equilibrium framework to investigate the welfare consequences of a prohibitive regulatory sanitary and phytosanitary (SPS) measure aimed at a foreign product with perceived negative characteristics. Two groups of consumers are distinguished: one that is indifferent to the foreign product’s negative attributes, and another that is concerned about them. Different scenarios concerning the welfare gains from the introduction of an NTM are explored. The welfare implications depend on consumer awareness and information policies pursued by the imposing government. The theoretical model is illustrated with data on the production and importation of prepared poultry in the EU. This paper focusses on the recent Dispute Settlement (DS) case 607 at the World Trade Organization (WTO) that was initiated by Brazil in November 2021 to consult with the EU on restrictive SPS measures imposed on the importation of prepared and preserved poultry.

Keywords: Welfare; Trade Policy; Non-tariff Measures; Technical Barriers to Trade; Dispute Settlement (search for similar items in EconPapers)
JEL-codes: D61 F13 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:vep:journl:y:2023:v:131:i:1:p:167-212

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