Hidden Trade Costs? Maximum Residue Limits and U.S. Exports of Fresh Fruits and Vegetables

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dc.contributor.authorHejazi, Minaen
dc.contributor.authorGrant, Jason H.en
dc.contributor.authorPeterson, Everett B.en
dc.contributor.departmentAgricultural and Applied Economicsen
dc.contributor.departmentCenter for Agricultural Tradeen
dc.date.accessioned2018-09-21T13:44:02Zen
dc.date.available2018-09-21T13:44:02Zen
dc.date.issued2018-07en
dc.description.abstractConsecutive rounds of trade negotiations at the multilateral and regional level have resulted in significant reductions to agricultural tariffs. However, agricultural economists and policy makers alike agree that non-tariff measures (NTMs) are more obscure in nature and have the potential to be more trade distorting. Among the list of NTMs, Sanitary and Phytosanitary (SPS) measures play an influential role in agri-food product trade. In this article we focus on a specific type of SPS measure known as maximum residue limits (MRLs) that features prominently in multilateral and regional trade negotiations. The purpose of this research project is threefold. First, we construct a comprehensive database of country-and-product specific MRLs for global fresh fruit and vegetable trade that varies by pesticide chemical type: herbicides, insecticides and fungicides. Second, we develop a new index summarizing the extent of bilateral MRL stringency between importing and exporting countries on pesticide tolerances focusing specific attention on the U.S. and its bilateral trading partners. Third, formal econometric models are developed to quantify and test the degree to which more stringent MRL standards in importing countries as compared to comparable domestic standards that exist in exporting countries restrict fresh fruit and vegetable trade. The results suggest importer MRL standards that are stricter than exporter MRLs can impart significant reductions in bilateral fresh fruit and vegetable trade.en
dc.description.sponsorshipThis work was supported by the USDA’s Office of the Chief Economist under project number 58-0111-17-012.en
dc.format.extent47 pagesen
dc.format.mimetypeapplication/pdfen
dc.identifier.urihttp://hdl.handle.net/10919/85061en
dc.language.isoen_USen
dc.publisherCenter for Agricultural Tradeen
dc.relation.ispartofseriesResearch Report; CAT-2018-06en
dc.rightsIn Copyrighten
dc.rights.holderVirginia Techen
dc.rights.urihttp://rightsstatements.org/vocab/InC/1.0/en
dc.subjectFruit and vegetable tradeen
dc.subjectBilateral tradeen
dc.subjectNon-tariff measuresen
dc.subjectMaximum residue limitsen
dc.subjectGravity modeen
dc.subjectIntensive and extensive margins of tradeen
dc.titleHidden Trade Costs? Maximum Residue Limits and U.S. Exports of Fresh Fruits and Vegetablesen
dc.typeReporten
dc.type.dcmitypeTexten

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