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Abstract

This study investigated the determinants of trade actions in the agricultural and food sector related to the coronavirus pandemic. These emergency trade measures aimed to prevent the inflow of certain products and promote the import of others. We investigated the determinants of such measures using product-level trade action data for WTO members. Applying an instrumental variable approach that accounts for high-dimensional fixed effects, we found that trade actions relate negatively to the applied tariff level and the domestic pandemic severity. Countries implemented fewer trade facilitation actions considering increased domestic COVID-19 cases, but this was done more in response to spiking foreign case numbers.

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