Is the European Union providing a regulatory model for other countries?

Cristina Herghelegiu () and Fernando Martin ()
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Cristina Herghelegiu: European Commission, Directorate-General for Internal Market, Industry, Entrepreneurship and SME, Chief Economist Unit
Fernando Martin: LICOS - Centre for Institutions and Economic Performance, KU Leuven

No WP2023/15, Single Market Economics Papers from Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs (European Commission), Chief Economist Team

Abstract: We examine whether the European Union (EU) is providing a model for other countries for product requirements aimed at protecting health, safety, and the environment. The analysis draws upon information on detailed categories of sanitary and phytosanitary (SPS) measures and technical barriers to trade (TBTs) introduced on specific products by 86 countries across the world over the 2009-2019 period. First, we examine whether the existence of requirements within a given product- level SPS/TBT category in other countries is associated with the prior existence of requirements within the same product-level SPS/TBT category in the EU, and document a positive and significant correlation. Second, we delve into potential mechanisms likely to explain the subsequent adoption of requirements by other countries within the same product-level SPS/TBT categories as the EU. The results indicate the presence of both market-driven forces, such as the importance of the EU as an export market for other countries, and treaty-driven forces, such as the existence of trade agreements between the EU and other countries. Finally, we show that the EU’s role in providing a regulatory model for other countries for product requirements aimed at protecting health, safety, and the environment is (1) predominant when compared to the United States or China, and (2) reinforced in the area of environmental protection.

Keywords: European Union; Product Requirements; Health; Safety; Environment; International Trade (search for similar items in EconPapers)
JEL-codes: F13 F14 I18 K32 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2023-11
New Economics Papers: this item is included in nep-eec and nep-eur
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Persistent link: https://EconPapers.repec.org/RePEc:bda:wpsmep:wp2023/15

DOI: 10.2873/100819

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