Sanitary and phytosanitary (SPS) measures are set to protect human, animal and plant health within a country by applying quality and safety standards on domestic and imported goods. Maximum Residue Levels (MRLs) are SPS measures that limit the maximum amount of pesticides allowed to remain on edible products. In the first chapter, I identify health and environmental variables that determine the stringency of MRLs and more importantly, find empirical evidence of a strong agro-chemical lobby influencing MRL regulation in their favour. In the second chapter I estimate the effect that MRLs have on exports of a sample of agricultural goods and find that MRL compliance is a fixed cost on exporters and not a variable cost. The third chapter finds evidence that regulation heterogeneity diminishes trade when the exporter faces more stringent regulation abroad but positive effects of regulation heterogeneity on exports from countries that set the strictest standards.