Abstract
This study aims to analyze the impact of Non tariff measures using sanitary and phytosanitary policy (SPS) and technical trade barriers (TBTs) on fishery exports of Indonesia and its trading partner countries such as China, South Korea, Vietnam, Canada, Russia and the European Union in period of 2007 to 2016. SPS and TBT are measured using inventory approach in the form of coverage ratio. In addition, this study uses a gravity model and panel data regression method. The results of this study indicate that the variables GDP of exporting country and GDP of importing country have a positive and significant effect on Indonesian fishery exports. Distance and SPS have a negative and significant effect on Indonesian fishery exports, while TBT has no effect on Indonesian fishery exports. Keywords: Export, SPS and TBT, Fishery Export, coverage ratio
Highlights
The high production of world fishery products boosted global fisheries trade to 130 billion USD by 2015 (FAO 2015)
The panel data regression method is used to see the effect of exporter Gross Domestic Product (GDP) variables (GDP of Indonesia), GDP of importer countries (GDP of European Union, China, South Korea, Vietnam, Canada and Russia), geographical distance, sanitation and phytosanitary (SPS) and technical barriers trade (TBT) in the period 2007-2016
The estimation results obtained in this study shows that Indonesia's geographical distance with its trading partner countries has a negative and significant impact on Indonesian fishery exports
Summary
The high production of world fishery products boosted global fisheries trade to 130 billion USD by 2015 (FAO 2015). The high non-tariff barriers in the fisheries sector are preceded by environmental issues such as eco-labelling and protection of certain animal species (Ministry of Trade of Republic of Indonesia, 2014). Despite the fact that MRA still has a case of rejection of export of Indonesian fishery products in its trading partner country which can be seen on Graph 1 (BKIPM 2016). The reasons for the refusal case of Indonesian fishery exports as a whole are related to the sanitary and phytosanitary policy (SPS) and technical trade barriers (TBTs) both of which have been negotiated in the Uruguay GATT rounds of Uruguay in 1986. Based on the above background description, this research will analyze the influence of NTM in the form of SPS and TBT policy on Indonesian fishery exports with trading partner countries such as EU, Canada, South Korea, China, Russia and Vietnam in 2007 to 2016. Independent variables used in this study include exporter country GDP and importer country GDP, geographical distance between countries, SPS policy, and TBT policy
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