Effects of SPS and TBT Regulations On Export of Iranian Shrimp

Stringent Sanitary and Phyto-Sanitary standards (SPS) have proliferated in the aftermath of the Uruguay Round Agreement on Agriculture (URAA). According to WTO rules, countries are allowed to adapt regulations under the SPS in order to protect human, animal and plant health as well as environment, wildlife and human safety. These standards are currently becoming a major stumbling block in agricultural trade for developing countries. Limited by inadequate resources and expertise, among other things, these countries also have poor participation rate in discussions related to SPS that impedes the representation of their interests and concerns in setting international standards for agricultural products. This paper estimates the trade effect of SPS regulations on the export of Shrimp in Iran. Our results suggest that these measures have a negative impact on the export of Shrimp from Iran. The demand for agricultural products is increasingly focusing on quality, packaging, labeling, and standards of products. Therefore, to increase shrimp export considering such measures are recommended.