National Standards and International Trade

Standards and technical regulations which govern the admissibility of imported goods into an economy raise costs of exporters entering new markets, and may have a particularly high impact on firms seeking to export from developing countries. Yet standards may also have a positive side, such as certifying product quality and safety for the consumer. This paper analyzes potential conflicts of interest between consumers and firms in a developed and a developing country under different assumptions about the costs and benefits of standards imposed on tradable products by one or both of the countries.