Impact of sanitary and phytosanitary measures on Indonesia’s tea export: A gravity model approach

Purpose ― This study examines the impact of Sanitary and Phytosanitary (SPS) measures, particularly the Maximum Residue Level (MRL) regulation for Anthraquinone, on Indonesia’s green and black tea exports.Methods ― An augmented gravity model of international trade is employed using panel data on Indonesia’s bilateral tea exports from 2001 to 2020. The model incorporates standard gravity variables, including economic size and geographical distance, along with regulatory indicators representing non-tariff measures (NTMs) and Anthraquinone MRL standards affecting tea exports.Findings ― The empirical results show that NTMs overall have a positive effect on Indonesia’s black tea exports, indicating that regulatory measures may also function as quality signals in international trade. However, stricter Anthraquinone MRL standards negatively affect black tea exports while having a positive effect on green tea exports. These results suggest that the impact of SPS regulations differs across tea product categories.Implication ― The findings underline the importance of regulatory compliance, quality control, and adaptive production strategies to maintain export competitiveness under increasingly stringent food safety standards. Originality ― This study distinguishes between general NTMs and specific MRL regulations and differentiates between green tea and black tea exports, providing new empirical evidence on the heterogeneous trade effects of SPS regulations in Indonesia’s tea sector.