For illustrative purposes, Table 4 presents simulations of the
trade effects of ISO and NonISO standards on five products derived
from animals at different levels of processing: HS Chapters 2, 3, 4,
15 and 16 (meat, fish and crustaceans, dairy and eggs, fats and
oils5, and preparation of meat and fish). We chose to focus on products
derived from animals because of the various food safety, sanitary,
and animal welfare standards that influence animal trade.
Additionally, regulations of plant products, especially from the
developing world have received a great deal of attention over the last
several years (e.g. vegetables and flowers from Kenya). Given that
the estimates are over the years 1996–2003 and over the four-digit
products of the two-digit HS Chapters, we simulate the effects at the
midpoint of the data set 1999 with the 1998 standards and for the
two-digit products. In the simulation, we consider the trade effects
of one additional lagged standard. We calculated the marginal effect
of one additional standard based on the estimated elasticity and the
trade and lagged number of standards for developed and developing
countries in 1999. Based on those marginal effects, we simulated the
effects of an additional lagged standard on trade and the resulting
market shares of developing and developed countries’ exports to
the EU. The number of lagged standards ranged from seven to 16.
Therefore, an additional NonISO standard would have represented
an increase of 6.67% to 14.29% in the number of standards. For the
five products in 1999, only HS Chapter 4 (dairy and eggs) had ISO
standards.