Abstract:

SPS Measures Impact on the Trade Model: a Case Study of China's By adopting the partial equilibrium and compliance cost, this paper analyzes four models produced by SPS measures impact on trade. They are: a country discriminated by another, a trader discriminated by all importers, a large trader discriminated by all importers, and nondiscrimination. By demonstrating China's agricultural trade, the paper concludes that the compliance cost is maximized when small countries are discriminated by all importers, and is minimized when large countries are in a nondiscrimination situation. Accordingly, international standards are the best reference to reduce compliance cost and transaction cost.

Key words: trade, compliance cost, agricultural products, SPS measures (the sanitary and phytosanitary measures)