Evaluating the Trade Restrictiveness of Phytosanitary Measures on US Fresh Fruit and Vegetable Imports

Empirically assessing sanitary and phytosanitary regulations has proven difficult because most data sources indicate whether a regulation exists but provide no information on the type or importance of the respective measure. In this article, we construct a novel database of U.S. phytosanitary measures and match these to 47 fresh fruit and vegetable product imports from 89 exporting countries over the period 1996-2008. A product-line gravity equation that accounts for zero trade flows is developed to investigate the trade impact of different pest-mitigation measures. While the results suggest that phytosanitary treatments generally reduce trade, the actual restrictiveness of these measures diminishes dramatically as exporters accumulate experience, and it vanishes when exporters reach a certain threshold. The results have important policy implications considering the number of empirical studies that find a negative impact of non-tariff measures on trade.