Article examines retaliatory use of public standards in trade wars between countries

free trade
Credit: Pixabay/CC0 Public Domain

Recent years have seen a resurgence in politicians' willingness to engage in trade wars with other countries. A new article published in Economic Inquiry investigates the extent to which countries use public standards—requirements that goods must satisfy before entering a country's stream of commerce—as a means of political retaliation during such wars.

Investigators found that this type of retaliatory behavior exists for economically strategic goods, and that globally, 1,000 bilateral trade flows—or just over $11.8 billion in —were subject to retaliatory standards in 2015.

"Tariff wars are a well-documented and classic example of retaliatory behavior. As tariff wars may face public backlash, this research shows that politicians' proclivities for retaliation are often satisfied through more subtle, non-tariff mechanisms, such as standards," said corresponding author Kjersti Nes, Ph.D., of the European Commission.

Economic Inquiry, a peer-reviewed journal of the Western Economic Association International (WEAI), recently welcomed their new Editor-in-Chief, Tim Salmon, Ph.D. The official announcement can be found on the WEAI website.


Explore further

Foreign retaliation to U.S. tariffs disproportionately affects Republican-leaning counties, report finds

More information: Kjersti Nes et al, Retaliatory use of public standards in trade, Economic Inquiry (2021). DOI: 10.1111/ecin.13029
Provided by Wiley
Citation: Article examines retaliatory use of public standards in trade wars between countries (2021, September 22) retrieved 27 October 2021 from https://phys.org/news/2021-09-article-retaliatory-standards-wars-countries.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.
5 shares

Feedback to editors