Trade effects of standards harmonization in the EU: improved access for non-EU partners

Anirudh Shingal and Malte Ehrich

Indian Council for Research on International Economic Relations (ICRIER) Working Paper from Indian Council for Research on International Economic Relations (ICRIER), New Delhi, India

Abstract: In September 2008, the EU replaced national-level regulation on Maximum Residue Levels (MRLs) in pesticides with harmonized Community-wide regulation. Using data on pesticide MRLs for 53 trading partners over 2005-2014, we examine the effects of this harmonization on both intra- and extra-EU imports in an original empirical contribution to this literature. We also embed regulatory heterogeneity in the Melitz (2003) framework in a theoretical contribution. We find robust evidence for adverse effects of regulatory heterogeneity on intra-EU trade in the pre-harmonization period, which questions the implementation of the Cassis de Dijon principle. Our findings also suggest that the EU’s MRL harmonization may have improved access for non-EU, including non-OECD, exporters to the Common Market.

Keywords: Standards; MRL Regulation; Harmonization; EU; Trade; icrier (search for similar items in EconPapers)
Pages: 33 page
Date: 2019-04
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