Unchanging protectionism in the post-ATC Era: Non-tariff measures.

Abstract

Purpose- This study explores the importance of non-tariff measures (NTMs) in the global textile and clothing trade. For this purpose, we consider the trade effects of other NTMs implemented instead of the quotas that expired in 2005 with the WTO Textile and Clothing Agreement (ATC). These results indicate that the textile and clothing trade continues to be protected by other non-tariff measures during the quota-free period. Methodology- Based on the example of Turkey, the study examines the effects of anti-dumping measures (ADP) on imports in the quota-free period compared to customs duties by using OLS and PPML methods for the period 2000-2020. Findings- The estimations indicate that the ADP measure of NTMs is much more effective than the tariff rates. The import value of textile and clothing might decline by 2,7%-4,1% due to a percentage point increase in the tariff rates compared to a decrease of 22,6%-78,6% following an ADP measure. This effect would be 5,2%-5,8% with one percentage point increase of tariffs, whereas 29,2%-78,2% after an ADP for the import volume. Conclusion- The results reveal that the anti-dumping measures, which replace quotas, could restrict imports more than customs duties. Thus, the protectionism in the global trade of textile and clothing industry continues with other NTMs instead of quotas.