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Trade Standards for Welfare Maximization: A Case of Indo-US Trade in Wheat and Mango
Published in
Pages: 1 - 50

SPS standards, the commodity specific standards to protect domestic flora and fauna, are usually kept at prohibitively high levels, thereby inducing sub-optimal outcomes as an NTB. All the studies so far have overlooked the possibility of bilateral negotiations and studied the impact of SPS standards for a single commodity and on the importing nation only. The present research addresses this gap. A negotiation based SPS regime is considered, wherein a country may settle for lower benefits or a loss on trade of one commodity due to lower standards, yet a reciprocal change for another commodity may provide higher net gains.

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