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China’s Salmon Sanction

Author

Listed:
  • Chen , Xianwen

    (School of Economics and Business, Norwegian University of Life Sciences)

  • Garcia, Roberto J.

    (School of Economics and Business, Norwegian University of Life Sciences)

Abstract
Angered by the Norwegian Nobel Committee’s awarding of the 2010 Peace Prize to a Chinese dissident, China signalled its displeasure by allegedly applying more stringent regulatory measures and import licensing procedures on Norway’s iconic product, salmon. This has been widely reported in the media internationally, but not formally investigated by the scientific community. Through interviews with stakeholders in the Norway-China salmon trade and examination of trade data, personal accounts corroborate the evidence from trade data that nontariff border measures have been disproportionately applied against Norwegian salmon. These measures have distorted China’s fresh/chilled whole salmon market since 2011, and are likely to have long-term consequences in terms of trade patterns, re-routing and smuggling of salmon, and for quality concerns. Accounting for the transhipped and the smuggled Norwegian salmon via Hong Kong and Vietnam, we challenge the popular misbelief that Norway has lost its majority share in China’s fresh/chilled whole salmon market, but rather has increased its exports, suggesting that these measures have failed to prevent more salmon from entering mainland China’s market. However, the Norwegian government’s refusal to meet the Dalai Lama in May 2014 suggests that the full effect of China’s salmon sanction has made its way upstream to affect Norway’s policy.

Suggested Citation

  • Chen , Xianwen & Garcia, Roberto J., 2015. "China’s Salmon Sanction," Working Paper Series 05-2015, Norwegian University of Life Sciences, School of Economics and Business.
    • Handle: RePEc:hhs:nlsseb:2015_005
    as

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    References listed on IDEAS

    as
    1. Uchida, Hirotsugu & Onozaka, Yuko & Morita, Tamaki & Managi, Shunsuke, 2014. "Demand for ecolabeled seafood in the Japanese market: A conjoint analysis of the impact of information and interaction with other labels," Food Policy, Elsevier, vol. 44(C), pages 68-76.
    2. Neal H. Hooker & Julie A. Caswell, 1999. "A Framework for Evaluating Non‐Tariff Barriers to Trade Related to Sanitary and Phytosanitary Regulation," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(2), pages 234-246, May.
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    Cited by:

    1. Lin, Faqin & Hu, Cui & Fuchs, Andreas, 2019. "How do firms respond to political tensions? The heterogeneity of the Dalai Lama Effect on trade," China Economic Review, Elsevier, vol. 54(C), pages 73-93.
    2. Fuchs, Andreas, 2016. "China’s Economic Diplomacy and the Politics-Trade Nexus," Working Papers 0609, University of Heidelberg, Department of Economics.

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    More about this item

    Keywords

    China; economic sanction; regulatory border measures; import licensing procedures; non-tariff barriers; trade patterns; transhipment;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery
    • Q27 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Issues in International Trade

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