Quantifying the Trade Impact of SPS and TBTs with Product-level Structural Gravity

Fabio Artuso, Julian Clarke (), Lionel Fontagné, Mahdi Ghodsi () and Gianluca Santoni ()
Additional contact information
Fabio Artuso: ADB - Asian Development Bank
Julian Clarke: ADB - Asian Development Bank
Mahdi Ghodsi: WIIW - Wiener Institut für Internationale Wirtschaftsvergleiche
Gianluca Santoni: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris

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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 multistage 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)
Date: 2026-03
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-05545520v1
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Working Paper: Quantifying the Trade Impact of SPS and TBTs with Product-level Structural Gravity (2026)
Working Paper: Quantifying the trade impact of SPS and TBTs with product-level structural gravity (2026)
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