Impact Analysis of Non-Tariff Measures (NTM) on Indonesian Tuna Exports to Major Destination Countries

Oktavina Widya Kristriana,Wiwiek Rindayati

doi:10.17358/jma.15.2.172

Oktavina Widya Kristriana, Wiwiek Rindayati

Open Access

https://doi.org/10.17358/jma.15.2.172

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Abstract

Currently, international trade is hampered in both tariff and non-tariff measures. Non-Tariff Measures (NTMs) are likely applied by some major trading countries. The NTM policy mostly applies Sanitary and Phytosanitary (SPS) and Technical Barrier to Trade (TBT). Tuna commodity is one of Indonesian potential exports facing NTM barriers. Indonesia has exported its tuna to a number of major destinations including China, Japan, Thailand, United States, South Korea, Singapore, and Vietnam. This study aims to analyze the export performance and NTMs impact on the Indonesian tuna export commodity. The methods used included descriptive analysis through inventory approach (coverage ratio and frequency index) and regression analysis of gravity model panel data from the period of 2009 – 2013 with the cross sectional data of the six major destination countries. The results show that United States as a country imposing the highest NTMs and frozen tuna is the most affected commodity group by NTM effects. The gravity model estimation results show that SPS and TBT affect tuna fish exports with positive coefficients of 0.011 and 0.015 respectively.Keywords: gravity model, NTM, SPS, TBT, tuna fish

Highlights

The export growth that has been promoted by international trade is hampered in both tariff and non-tariff measures
The results show that United States as a country imposing the highest NonTariff Measures (NTMs) and frozen tuna is the most affected commodity group by NTM effects
This study aims to analyze whether the impact of nontariff measures become obstacles or, on the contrary, create opportunities for Indonesian tuna exports, and establish a new implication policy to encourage the performance of Indonesian tuna exports

Summary

Introduction

The export growth that has been promoted by international trade is hampered in both tariff and non-tariff measures. Nontariff measures have been applied by countries to protect their domestic producers in order to face import competitions with foreign products (Adi, 2007; Dahar, 2014; Fridhowati and Asmara, 2013; Deardorff and Stern, 1998; Disdier et al 2008). Product safety and sustainable environment in production process are the things people will be more concerned about, and it will make an impact on consumer’s decision on agricultural product purchasing. Their decision of purchasing is determined by them and makes the important role for non-tariff measures (Boza, 2013; Mufidah, 2014; Renita, 2015)

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