Jean-Christophe Maur

Reputation Matters: Spillover Effects in the Enforcement of US SPS Measures

This paper uses a novel dataset on United States food import refusals to show that reputation is an important factor in the enforcement of sanitary and phytosanitary measures. The strongest reputation effect comes from a countrys own history of compliance in relation to a particular product. The odds of at least one import refusal in the current year increase by more than 300 percent if there was a refusal in the preceding year, after controlling for other factors. However, the data are also suggestive of the existence of two sets of spillovers. First, import refusals are less likely if there is an established history of compliance in relation to other goods in the same sector. Second, an established history of compliance in relation to the same product by neighboring countries also helps reduce the number of import refusals. These findings have important policy implications for exporters of agricultural products, especially in middle-income countries. In particular, they highlight the importance of a comprehensive approach to upgrading standards systems, focusing on sectors rather than individual products, as well as the possible benefits that can come from regional cooperation in building sanitary and phytosanitary compliance capacity.

Antidumping in Supercomputers or Supercomputing in Antidumping? The Cray-NEC Case

The U.S. antidumping case in vector supercomputers - the Cray-NEC case - resulted in the imposition of the highest antidumping duties in the entire U.S. antidumping history (454% for NEC, the main defendant). This, along with the considerable attention attracted by the dispute, would be sufficient ground for a closer examination of the case. Three additional aspects of the Cray-NEC case, however, render it particularly relevant to the economics and law of antidumping: (1) the Cray-NEC case offers an opportunity to look at cases of dumping in the context of a product where antidumping could be a likely policy option - though such a policy is probably a second best option. There are, indeed, two situations where dumping could be considered as a serious source of concern and cause of policy intervention: predatory and strategic dumping. Predatory dumping is more likely to occur where only a few firms are involved, such as in the supercomputer industry. Strategic dumping requires static or dynamic scale economies which seem also likely in this case; (2) the Cray-NEC case offers an opportunity to look at antidumping policy as a component of industrial policy. The supercomputer industry has so far been shaped by two other industrial policy tools: active subsidy through RD (3) the supercomputer case raises key issues about antidumping procedures per se, from the point of view of both determination and enforcement. Supercomputers as a product do not seem really subject to markets. The number of transactions, realized through auctioning, is very small, and the products sold are highly diversified. In these circumstances, is it meaningful to talk about a «market» for supercomputers - hence to apply GATT antidumping rules which presuppose that there is a market? Turning to enforcement, the Cray-NEC case offers an interesting development: if Japanese supercomputers cannot be sold in the U.S. market, they can be located in Japan, and their services sold to U.S. potential buyers from there (through appropriate telecommunications). In other words, the Cray-NEC case may offer the first clear example of trade in services as a substitute to trade in goods - raising a host of issues regarding antidumping procedures.

US phytosanitary restrictions: the forgotten non-tariff barrier

Purpose This paper aims to provide new evidence that the US phytosanitary regime is associated with a restrictive market access environment for fruit and vegetable products. One chief reason seems to be that the US regime uses a positive list approach, under which only authorized countries can export. Design/methodology/approach The methodology of the paper is primarily qualitative. This paper reviews the US sanitary and phytosanitary measures (SPS) system and its scope for use to protect markets, in addition to protecting life and health. The approach is institutional and political economic. Findings For most products, only a portion of global production is authorized for export to the USA. Even among authorized countries, only a small proportion is actually exported. As a result, the number of countries exporting fresh fruit and vegetables to the USA is far lower than those exporting to countries like the EU and Canada, but it is on a par with markets known to be restrictive in this area, such as Australia and Japan. Using a data set of fruit and vegetable market access and political contributions, this paper also provides evidence showing that domestic political economy considerations may influence the decision to grant market access to foreign producers. Originality/value The US SPS system has not previously been analyzed in this way, and the distinction between negative and positive list approaches is highlighted in terms of its implications for third-party exporters. Similarly, the analysis of political contributions is novel and suggestive of an important dynamic at work in the determination of the US policy.