Sturm, Daniel (2002) Product standards, trade disputes and protectionism. In: European Research Workshop in International Trade - ERWIT, 14-17 Jun 2002, Munich, Germany. (Unpublished)
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Trade disputes over national product standards are a growing source of tension in the international trading system. The usual pattern is that a country introduces a new product standard for all sales of a good in its local market, which is justified as necessary for consumer or environmental protection. Importers into the local market, however, challenge the standard as a ''disguised barrier to trade'' or ''green protectionism''. The paper develops a two country political economy model to explain such disputes. It is shown how the political process can lead to a ''political failure'' which takes the form of either too many or too few product standards and disagreement between politicians in different countries over the optimal policy. In a second step the model is used to evaluate whether two common proposals to settle or avoid such disputes, mutual recognition of standards and harmonization, can improve the political process.
|Item Type:||Conference or Workshop Item (Paper)|
|Additional Information:||© 2002 Daniel Sturm|
|Uncontrolled Keywords:||Product standards; trade policy; environmental policy; political economy|
|Library of Congress subject classification:||H Social Sciences > HF Commerce|
|Sets:||Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Departments > Economics
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Product standards, trade disputes and protectionism. (deposited 29 Jul 2008 16:30)
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