ABSTRACT
The implementation of Sanitary and Phytosanitary (SPS) agreements as one of the non-tariff measures within the European Union (EU) member countries through Commission Regulation EC No. 1881/2006, setting maximum levels for certain contaminants in foodstuffs, is predicted to be influencing the export of pepper and nutmeg from Indonesia. To prove the hypothesis, this research was done using a gravity model approach with dummy SPS measures as a variable target which described regulation implemented in the EU, for analysing the impact on the export of these commodities. The analytical method used in this research is the econometric analysis model with panel data. Estimation data was made in terms of period of time from 1996 to 2015 with control variables of Gross Domestic Product (GDP), production, Real Exchange Rate (RER), dummy regulation of SPS, price, transportation cost, tariff and interaction of variables as dummy regulation of SPS and tariff. The results of this estimation show that the SPS regulations of the EU have significantly had a negative impact on the export of nutmeg and pepper from Indonesia to the EU within a 99% confidence level of estimation of each.
