This paper analyzes the effect of nontariff measures (NTMs) on firms in Tunisia. It draws a precise picture of NTMs’ effects on firms’ imports. We use firm‐level data to take into account firm heterogeneity. We explore the impact of NTMs on small vs. medium and large firms. We also consider the differentiated impact of NTMs. Some measures have informational content and help reduce information asymmetries. When the endogeneity issue of NTMs is controlled for, results show an overall positive impact of NTMs on imports.

For many years, the European Union has been an important market for agricultural products from Africa. However, African agricultural exporters have often found the European market difficult to access because of a raft of NTMs that add to exporters’ costs. The trouble with NTMs in the agricultural arena is that, while ostensibly used to uphold health and safety standards, they could have an underlying protectionist intent – which is very difficult to prove.

This chapter investigates the uneven effects of TBT/SPS measures on bilateral trade flows, according to a country’s income level. Estimating standard gravity models, we find that the effects of TBT/SPS depend mostly on the exporter’s development level (developed, developing or least developed). We find that, on average, SPS measures promote exports from Latin American (LatAm) countries, but harm exports from developed and other developing countries. However, TBT measures raise exports of developed and other developing countries whereas they decrease LatAm exports.