Quantitative Methods for Assessing the Effects of Non-Tariff Measures and Trade Facilitation

Abstract

That nontraditional (non-tariff) manifestations of protection may constitute a formidable barrier to international trade has been given increased recognition since at least the Uruguay Round, with its successes in reducing tariffs and in curtailing the use of quotas and voluntary export restraints. This recognition was codified initially in Article XI of GATT 47, which prohibited the use of quantitative restrictions of trade. However, recognizing that these barriers exist is a substantial step from cataloguing them. In turn, this is a significant step from measuring their effects, and this is an even greater step from achieving an agreement to reform. An objective of this book is the provision of an impetus towards a negotiating forum to consider their reduction. The present book constitutes a commendable effort at cataloguing and measuring these barriers and their impacts. The book is the proceedings of a conference held in Bangkok on 8–10 October 2003, under the auspices of APEC.A strength of the volume is that it contains a roughly even distribution of contributions by authors that have affiliations with national and international institutions, and authors that have academic appointments. As such, the book entails an appealing mixture of contributions by authors with experience in the implementation of policy, and more traditional academic papers that are at least partially concerned with empirical (inferential statistics and simulation) method. Those authors with experience in policy have a thorough knowledge of the existence and limitations of data. A weakness, and not a surprising one in a proceedings, is that the non-tariff measures (NTM) that are identified, and the sources of data that are disclosed and discussed, do not always concord with the empirical techniques of the more academic papers. That is, the book does not provide a technique to measure every trade impediment that is identified. However, measures of a great many forms of NTM are addressed. After beginning with an overview by the editors, and by Robert Scollay in Section One, the volume addresses the obtaining of data on non-tariff measures in Section Two. The chapter by Bora discusses various forms in which NTM may be manifest. It is followed by a preliminary discussion by Manifold and Donnelly of an ongoing project at the US International Trade Commission (USITC) to quantify NTM. The section concludes with a chapter by Fischer that invokes an all too uncommon method in economics—that of survey or field work—to assess the effects of NTM on Chilean exporters. Section Three addresses the effects of barriers to trade in services, beginning with Dee’s survey of efforts to quantify the effects of such barriers, with particular reference to Australia. Sarkar discusses how provision of services is often embodied in skilled labor, and contends that international impediments to factor movements inhibit