Measuring the Costs and Trade Effects of Phytosanitary Protocols: A U.S.–Japanese Apple Example

Calvin, Linda; Krissoff, Barry; Foster, William

doi:10.1111/j.1467-9353.2007.00395.x

Cited by 24 publications

(13 citation statements)

References 5 publications

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“…The average unit fee for international transportation and insurance ␥ is estimated to be $8.55/(10 5 km * kg). This is comparable to estimates provided by Calvin, Krissoff, and Foster (2008) on fees to transport apples from the United States to Japan. Estimated parameterŝ measure how consumers' marginal preferences for apples vary by country as characterized by their development level.…”

Section: Data Econometric Estimation and Resultssupporting

confidence: 81%

“…We provide an upper-bound estimate of the injury New Zealand could claim in a WTO dispute with Australia in terms of forgone apple exports to the latter country. Our estimate is an upper bound because of the caveats inherent to price-wedge techniques, and because some SPS measures are likely to survive the WTO panel ruling as it was the case in the US-Japan apple dispute (Calvin, Krissoff, and Foster 2008). Finally, the welfare analysis shows that it is optimal for Australia to eliminate its SPS policy on New Zealand apple imports even in the case of a significant fire blight contamination and under various domestic supply conditions, as Australian consumers' gains would largely outweigh producers' losses.…”

Section: Resultsmentioning

confidence: 98%

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Tariff Equivalent and Forgone Trade Effects of Prohibitive Technical Barriers to Trade

Yue

Beghin

2009

American J Agri Economics

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We derive a method to econometrically estimate the tariff equivalent and forgone trade effects of a prohibitive technical barrier to trade (TBT) based on Wales and Woodland’s Kuhn-Tucker approach to corner solutions in consumer choice. The method overcomes the lack of observed data on bilateral trade flows and accounts for differentiated goods by place of origin. We apply the derived random utility model to international trade in apples to identify the tariff equivalent of prohibitive phytosanitary barriers imposed by Australia on potential imports of New Zealand apples. We estimate the forgone apple trade between the two countries, the implied trade injury imposed by Australia on New Zealand, and the welfare loss to Australia. The removal of the Australian policy would induce net welfare gains around US$50 million annually for Australia. Copyright 2009, Oxford University Press.

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Section: Data Econometric Estimation and Resultssupporting

confidence: 81%

Section: Resultsmentioning

confidence: 98%

Tariff Equivalent and Forgone Trade Effects of Prohibitive Technical Barriers to Trade

Yue

Beghin

2009

American J Agri Economics

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“…Others have quantified the effective rate of protection offered by SPS measures following an approach that assesses costs of compliance (e.g., Calvin et al, 2008; Hooker and Caswell, 1999; Karov et al, 2009; Peterson and Orden, 2008). If various transaction costs are difficult to quantify, or if there is significant heterogeneity between domestic and imported products, the cost approach may offer a more realistic assessment of the effect of an SPS measure.…”

Section: A Closer Look At Key Sps Measures In Fresh Fruit Marketsmentioning

confidence: 99%

“…Country‐level tariff rates for apples are listed in Table 5 and for oranges in Table 6 (International Customs Tariffs Bureau, 2010; International Trade Administration, 2010). For simplicity, and following the approach used in Calvin et al (2008), transportation costs are set equal to a share of the import price. Baseline international transportation costs are also adjusted to account for the distances between major ports in the partner countries (Sea Rates, 2010).…”

Section: A Closer Look At Key Sps Measures In Fresh Fruit Marketsmentioning

confidence: 99%

How important are tariffs and nontariff barriers in international markets for fresh fruit?

Rickard

Lei

2011

Agricultural Economics

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International markets for agricultural products are often subject to a range of trade barriers, and horticultural products are no exception. This article examines the economic implications of tariffs and sanitary and phytosanitary (SPS) regulations that are applied to global markets for fresh apples and fresh oranges. We calculate regional-level tariff rates and ad valorem equivalents for SPS barriers following the price-wedge approach. A simulation model is developed and used to assess the price, quantity, and welfare implications of reducing tariffs, removing SPS barriers, and removing SPS barriers that have been identified as a Specific Trade Concern (STC) by the World Trade Organization. Results suggest that a 36% reduction in global tariffs would lead to greater welfare gains than would the elimination of SPS measures in apple markets. However, in orange markets, we find that SPS measures have much larger economic implications for producers and consumers. Here, a 36% reduction in tariffs would lead to smaller overall welfare effects compared to removal of all SPS measures, and only slightly larger effects than those from removal of STCs alone.JEL classifications: F13, Q17, Q18

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“…Approximately 90 percent of the total volume 22 Product deterioration due to methyl bromide fumigation varies by commodity. Approximately 84 percent of Red Delicious apples are marketable after fumigation (Calvin, Krissoff, and Foster 2008). Methyl bromide fumigation of citrus can cause fruit losses of up to 60 percent (Lynch 2001 of broccoli/cauliflower and bean/pea shipments is physically inspected, 50 percent of pepper import volume is inspected, and roughly 20 percent of onion import volume and tomato import volume is physically inspected.…”

Section: Variables and Summary Statisticsmentioning

confidence: 99%

Protectionism versus risk in screening for invasive species

Lawley

2013

Journal of Environmental Economics and Management

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The perception that biosecurity import restrictions are used as disguised barriers to trade is widespread. Despite this perception, there has been little empirical analysis distinguishing genuine attempts to protect against introductions of foreign pests and diseases from attempts to distort trade. In this dissertation, I examine the extent to which enforcement of a biosecurity import standard -US agricultural border inspections for non-indigenous species (NIS) -is used as a disguised barrier to trade.I develop a theoretical model of border inspections that incorporates incentives to protect domestic agricultural producers from import competition as well as incentives to protect against NIS damage associated with agricultural imports. The theoretical model is used to specify an econometric model of border inspection that identifies a parameter representing the implied weight the inspection agency places on domestic producer welfare relative to consumer welfare. The structural model further identifies a parameter representing expected NIS damage as implied by the inspection agency's choice of inspection intensity. I estimate the parameters of the model using a dataset that documents the outcome of US agricultural border inspections.I find evidence suggesting that the inspection agency places greater weight on domestic producer welfare relative to consumer welfare, independent of expected NIS damage. Estimates of the implicit weight on domestic producer surplus range from 1 to 1.63. These results suggest that inspection protocols are implemented in a trade distorting manner to the benefit of domestic producers and at the expense of domestic consumers. I also find evidence that border inspections are influenced by terms of trade motives. The evidence that inspections are not implemented in a least trade distorting manner is independent of expected NIS damage. A second outcome of the econometric analysis is an estimate of expected NIS damage: I find that the inspection agency behaves as if expected NIS damage ranges from $0 to more than $0.25 per dollar of inspected imports.

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Measuring the Costs and Trade Effects of Phytosanitary Protocols: A U.S.–Japanese Apple Example

Cited by 24 publications

References 5 publications

Tariff Equivalent and Forgone Trade Effects of Prohibitive Technical Barriers to Trade

Tariff Equivalent and Forgone Trade Effects of Prohibitive Technical Barriers to Trade

How important are tariffs and nontariff barriers in international markets for fresh fruit?

Protectionism versus risk in screening for invasive species

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