The effect of sanitary and phytosanitary measures on EU exports: The case of agri-food products

Abstract: With protectionism on a global rise, non-tariff measures have been an object for public debates and research, as the work of WTO has reduced the possibilities of raising traditional trade restrictions as customs tariffs. Hence governments have turned to non-tariff measures and regulatory standards to fulfill their agendas. This study aims at shedding light on the question of whether non-tariff measures, and particularly sanitary and phytosanitary (SPS) measures, have been decreasing trade between 2002 and 2017. This is conducted by investigating the effects of EU exports of agri-food products as the importer imposes an SPS measure towards these products. The result is estimated by applying Ordinary Least Squares and Pseudo-Poisson Maximum Likelihood to the gravity model of trade. The data sets include EU export of agri-food gods to 122 countries during 2002-2017. This study does not find any decreases in EU exports. However, the results are mostly insignificant and any definite conclusion can not be drawn. There is, however, significant proof of a decrease in exports towards low-income countries as these impose SPS measures.