US ITC Seminar: Product Standards Harmonization and Firm Heterogeneity in International Trade
Oct 07, 2010 11:30 AM ( Washington, DC )
As free trade areas have proliferated and statutory tariffs have been dramatically reduced in recent decades, non-tariff barriers (NTBs) to international trade have risen in importance. Destination-specific product standards are one of the major types of NTBs as they impose additional costs on exporters and increases the time required to bring a product to market.
This seminar examines the response of U.S. manufacturing firms to a reduction of this NTB by looking at the harmonization of European product standards to international norms in the electronics sector. Using a highly detailed dataset that links U.S. international trade transactions to U.S. firms and a new industry-level database of EU product standards, harmonization has been found to increase U.S. exports to the EU and that this increase is due to more U.S. firms entering the EU market - the extensive margin of trade.