at the WTO across all countries and years.<sup>28</sup> We then normalize these continuous measures to range between 0 and 1. The results, reported in Table 7, confirm that deep trade agreements generate positive spillover effects for firms that previously exported to one of the member countries, increasingly so for products that are highly sensitive to regulations.

Table 7: Continuous STC measure

||(1)|(2)|(3)|(4)|(5)|(6)|(7)|(8)|
|---|---|---|---|---|---|---|---|---|
|||Export pa|rticipation|||Export|entry||
|Exp Other...(t-1)|||||||||
|... RTA<br>... RTA x STC (cnt)<br>... Depth|0.004***<br>(0.000)<br>0.014***<br>(0.002)|0.006***<br>(0.000)<br>-0.010***<br>(0.002)<br>-0.004***<br>(0.001)|0.004***<br>(0.000)<br>0.006**<br>(0.002)|0.003***<br>(0.000)<br>0.002<br>(0.002)|0.003***<br>(0.000)<br>0.004***<br>(0.001)|0.004***<br>(0.000)<br>-0.005***<br>(0.001)<br>-0.001***<br>(0.000)|0.004***<br>(0.000)<br>0.000<br>(0.001)|0.003***<br>(0.000)<br>-0.001<br>(0.001)|
|... Depth x STC (cnt)||0.055***<br>(0.005)||||0.022***<br>(0.002)|||
|... Depth MFN|||0.008***<br>(0.001)||||0.006***<br>(0.001)||
|... Depth Pref|||-0.005***<br>(0.001)||||-0.005***<br>(0.001)||
|... Depth MFN x STC|(cnt)||0.080***<br>(0.007)||||0.029***<br>(0.003)||
|... Depth Pref x STC (|cnt)||-0.053***<br>(0.005)||||-0.017***<br>(0.003)||
|... SPSorTBT||||0.001***<br>(0.000)||||0.000<br>(0.000)|
|... SPSorTBT x STC (|cnt)|||0.019***<br>(0.002)||||0.008***<br>(0.001)|
|Observations<br>|164,595,130|164,595,130|164,595,130|164,595,130|164,298,452|164,298,452|164,298,452|164,298,452|
|R-squared|0.338|0.338|0.340|0.340|0.156|0.156|0.156|0.156|
|Spatial controls|YES|YES|YES|YES|YES|YES|YES|YES|
|Firm-prod-year FE|YES|YES|YES|YES|YES|YES|YES|YES|
|Dest-prod-year FE|YES|YES|YES|YES|YES|YES|YES|YES|
|Firm-prod-dest FE|YES|YES|YES|YES|YES|YES|YES|YES|

Robust standard errors, clustered at the firm-product level, are in parentheses. The dependent variable _yijp,t_ is a dummy variable equal to 1 if firm _i_ exported (or started exporting) product _p_ to country _j_ in year _t_ . STC (cnt) is the incidence of Specific Trade Concerns (STC) on product _p_ , normalized between 0 and 1, that has been raised in the WTO. Coefficients on spatial exporting controls are not reported for brevity. *** p _<_ 0.01, ** p _<_ 0.05, * p _<_ 0.1

# **5.2 Alternative measure of regulation intensity: FDA prior notice**

Table 8 presents the results using an alternative proxy for the regulation intensity of products: prior notice requirements for FDA. This alternative measure captures different types of regulations compared to the STC data set, as it is concentrated mainly in food, drugs, and medical devices, imported or offered for import into the United States that require prior notice to the FDA. Using this measure, the results show that the third-country effect is weaker for FDA-regulated products in case of shallow RTAs,

> 28This frequency ranges from 1 to 30 in SPS STC and 1 to 46 in the TBT STC. The most frequently raised product in the SPS STC is 0201 meat of bovine animals (fresh or chilled), and in the TBT STC is 2204 wine of fresh grapes. SPS and TBT combined, the most frequently raised product is 0201 meat and bovine animals (fresh or chilled), raised in 68 STCs.

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