Measuring the costs and trade effects of phytosanitary protocols: A US-Japanese apple example

Abstract

This article investigates the trade impact of Japan's decision in 2005 to revise its phytosanitary protocol for fire blight for U.S. apple imports but retain its codling moth protocol. The analysis presents a participation model to measure the economic costs of phytosanitary barriers to trade. The model provides an explicit cost of the phytosanitary barriers in terms of the structure of the protocols, an important advantage over the price-wedge methodology. This makes it possible to separate the economic costs of various protocols-in this case, the fire blight and codling moth protocols.