Non-indigenous Species and Preemptive Trade Policy

This paper presents a theoretical model of the enforcement of an SPS standard - border inspections for invasive non-indigenous species - in the presence of both risk-reducing and protectionist motivations. The paper evaluates the impact of political economy and terms of trade motivations on optimal inspection intensity. The response of optimal inspection intensity to the infection rate and predetermined tariff rate is sensitive to the inclusion of these protectionist motivations