Wood Packaging SPS Regulations: Effects on U.S. Imports and Containerized Trade

摘要

International standards for wood packaging material (WPM) used in international trade were fullyimplemented by the United States in July 2006. These standards were based on guidelines of theInternational Plant Protection Convention (IPPC) and were designed to meet the pest eradication concernsof the countries party to the agreement. Other countries, such as Australia, the European Union, China,Canada, Mexico and New Zealand, have also implemented the IPPC standards. The IPPC standardsrequire that WPM in international trade be either heat treated or fumigated with methyl bromide, andmarked with an approved international logo. These standards are expected to raise the costs of woodpackaging material used in international trade.This paper analyzes how the effects of a sanitary and phytosanitary (SPS) regulation, such as thetreatment of wood packaging, can be analyzed using a global model of international trade. The paperconcentrates on the effects on U.S. imports and on the use of wood pallets, the most common type ofwood packaging used in international trade. The paper includes a pallet database, based on U.S.containerized vessel trade and truck imports, to estimate the number of pallets that might be subject tothese new import regulations. The Global Trade Analysis Project (GTAP) model was used to analyzehow changes in pallet costs could affect U.S. imports. The increased pallet costs were incorporated intothe model through the international trade and transport margins for various U.S. import sectors. The paper includes three scenarios: (1) adoption of wood pallet treatment by all U.S. trading partners,except China, which had already met the IPPC standards, and Canada, which is exempted from U.S.wood pallet regulations, (2) requirements for alternative packaging (low-cost scenario), and (3)requirements for alternative packaging (high-cost scenario).