Lowering Regulatory Trade Costs

Abstract Negotiations on ‘deeper’ trade agreements and estimates of tariff equivalents have increased the awareness that regulatory trade costs are (too) high. This paper discusses ways to effectively lower such costs, reviewing the potential role of trade agreements and international regulatory cooperation, and the approaches that have been taken in different world regions. Attention is also paid to cost reduction via global technical standardization. Key issues are how to reduce the prevalence of national standards setting and how to best promote international standards. In both dimensions, Europe is argued to play a frontrunner role.