Protectionism versus risk in screening for invasive species
2013
Lawley, Chad
I examine the extent to which enforcement of a biosecurity import restriction – US border inspections for foreign pests and diseases – is used as a protectionist trade barrier. The parameters of a structural model of border inspection are estimated using a detailed dataset documenting the outcome of US agricultural border inspections. I find that inspections are conducted in a manner that places an implied welfare weight on domestic producers (relative to consumers) ranging from 1 to 1.63. I also find evidence that the inspection agency takes terms of trade into account when inspecting agricultural imports. These results suggest that border inspections are used as a protectionist non-tariff barrier.
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