Impact of SPS Measures Imposed by Developed Countries on China’s Tea Export-A Perspective of Differences in Standards

Abstract

Sanitary and phytosanitary (SPS) measures have become the main obstacles to some China’s traditional export product like tea since China’s accession to WTO. Different from previous researches, this paper approaches the problem from the perspective of SPS gap between China and importing countries. Based on the panel data of China and its 10 developed trade partners during 1992 to 2013, it applies gravity model to quantify the effects of SPS gap both in quality (i.e use Maximum Residual Limits of fenvalerate and endosulfan as proxy) and in quantity (i.e regulated numbers of Maximum Residual Limits) between China and its partners on China's tea export, the results attribute China’s tea restricted by SPS measures to the big gaps from developed countries in maximal residual limits of pesticides and numbers of regulated pesticides.