Standardization Union Effects: The Case Of EU Enlargement
The analysis of trade policy shows growing interest in various types of "Standards". While technical regulations and standards are introduced to protect the interest of consumers, they can also act as Technical Barriers to Trade (TBT), as foreign suppliers complying with national regulations might be required to bear certain costs of adjustment to the new regime. Recent literature focused on the concept of standards and concluded that shared standards promote trade. The authors instead set the attention to technical regulations of the European Union and concentrate on their effects on trade costs. The analysis is inspired by Gandal and Shy's (2001) cost reducing standardization union theory.