EVALUATING THE IMPACT OF SANITARY AND PHYTOSANITARY MEASURES ON AGRICULTURAL TRADE: EVIDENCE FROM THAI FRUIT EXPORTS TO CHINA

Food safety concerns have become increasingly important challenge for agricultural trade. Sanitary and phytosanitary (SPS) measures are often considered as major non-tariff trade barriers, which have surged rapidly over the recent decade. This study systematically investigates the impact of China’s SPS measures on Thai fruit exports. The panel dataset is constructed with 17 Thai fruit items for the sample period 2000–2018. Gravity equations are estimated to quantify the trade effects of SPS measures on the value of fruit exports from Thailand to China. The results from the sectoral analysis reveal that the restrictiveness of SPS measures has a positive and substantial effect on export volumes. This suggests that non-arbitrary and informative SPS requirements imposed by a large importing country would help facilitate the agricultural trade.