This paper develops an approach for quantifying the importance of exporter product quality in the effects of technical regulation of importing country on the bilateral trade flows. In this framework, dual effects of technical regulation as demand-shifter through reduced information asymmetry and cost-shifter due to adaptation are identified. Using bilateral nontariff data for 64 exporting and 56 importing countries at product levels from 2005 to 2014, we find that technical regulation can increase the export of product of high quality, while it can reduce the export, particularly in markets that have imposed technical regulation more frequently than exporting countries. This result is confirmed across different income groups and sectors, implying the importance of trade promoting effect of technical regulation through increase in perceived quality.