This paper examines the effects of restrictions in banking and transport sector on agri-food trade. Based on a gravity model with panel data from 2014 to 2017 for 36 countries, we use both country restriction indices and regulatory heterogeneity indices for pairs of countries to capture the level of restrictions in these sectors. Our results suggest that the regulatory disparities between countries, as well as restrictions imposed by each country, have significant negative impacts on trade in food products. However, the effects can be reduced by the harmonization of these restrictive policies. Further, we find that regulatory heterogeneity has a larger trade impact when the level of trade restrictiveness is low.