Standards, a catalyst for the winners - a barrier for the losers? An empirical analysis of the impact of higher SPS measures on the trade performance of developing countries

Within the debate about developing countries export competitiveness the increasingimportance of food safety and quality standards especially in OECD countries appeals to be one ofthe major sources of concern. The paper analyses the trade performance of 73 developing countrieswithin the context of stricter SPS measures. The analysis concentrates on the meat and fruit /vegetable sectors as especially high value product sectors are determined by standards. The periodsunder consideration are 1993- 1995, as a period before the implementation of the SPS Agreementand 2002- 2004, as a period after the implementation. A cluster analysis groups the countriesaccording to the variables "ratio" and "difference" of the export value to OECD countries includingthe possibility to explore trade performance regarding to the absolute level of change and relativedynamics. Subsequently, interconnections with EU and US border rejections as well as with STDF(Standards and Trade Development Facility) investment are explored. For the results three majorfindings should be underlined: e) The group of developing countries shows as well in total as inrelative terms a very heterogeneous picture of their export development and there is no linearrelation between total export value and direction of development. ee) Ten groups were identified inthe cluster analysis, like e.g. small winners, large winners, small losers, large losers. eee) Most largeexporters increased their market share, but very successful groups were also found among smallexporters, especially in the fruit / vegetable market. eeee) Both, border rejections as well as STDFinvestments did not reflect a particular structure related to market share development of individualcountries.