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Non-tariff measures in agri-food trade between Chile and the EU : comparative trade effects

(2021)

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Olivera_14641901_2021.pdf
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Abstract
Sanitary and phytosanitary (SPS) and Technical Barriers to Trade (TBT) measures are in the agenda of the negotiations for the modernization of the Association Agreement (AA) between Chile and the EU. The impact of these measures on trade has been largely discuss in existing literature. In the frame of the existing AA, the present paper aims to contribute to the understanding of the impact of non-tariff measures and specially SPS and TBT in agri-food trade between the EU and Chile through a comparative analysis of trade between the EU and Chile main southern hemisphere competitors (Argentina, Brazil, Mexico, Peru and South Africa). The analysis focuses on the following sub-sectors of interest: fruits, vegetables, meat, fish and seafood, and dairy products. In order to address this question, we first carry-on interviews with the main private actors and political decision makers both in Chile and in the EU. Complementary to this, a gravity model allows to contribute with empirical evidence to test whether SPS and TBT provisions in EU trade agreements facilitate trade between the EU and its partners and whether these provisions contribute to reducing trade disputes between the EU and its partners. Our main findings are that the effect of these provisions vary for EU imports and exports and across agri-food subsectors. For EU imports, we find that SPS and TBT provisions in EU trade agreements have a positive impact in the traded value for meat and dairy products sub-sectors, no significant effect for the fruits and fish and seafood subsectors whereas the impact on the vegetables subsector appears to be negative. For EU exports, we find a positive effect of SPS and TBT provisions in EU trade agreements for the fruit sub-sector yet a negative impact for the vegetables. The other sub-sectors under study present no significative effect of EU trade agreement with deep SPS and TBT provisions.