Effects Of Non-tariff Measures Research Articles

The effect of non-tariff measures (NTMS) on Indonesian pulp and paper exports

<span lang="EN-US">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). Pulp and Paper commodities are some of Indonesia’s potential exports facing NTM barriers by a number of major destinations countries. This study is aimed to evaluate the effects of NTMs upon Indonesian pulp and paper export in the main destinations. NTMs are represented by coverage ratio of SPS and coverage ratio of TBT. The effect of NTMs imposition to pulp and paper between Indonesia and its main trade partners is estimated by using a panel data gravity model that is constructed by disaggregated data on bilateral export trade flow of pulp and paper between Indonesia and its main trade partners for the period from 2005 to 2019. The gravity model is estimated by a fixed effects model, Poisson Pseudo Maximum Likelihood, and Hausman Taylor model. The results indicated that the imposition of SPS and TBT of destination countries presented a positive and significant impact upon the Indonesian export of pulp. However, the imposition of SPS and TBT of destination countries presented a negative and significant impact upon the Indonesian export of paper.</span>

Non‐tariff measures, product quality and import demand

AbstractThis article examines how trade effect of non‐tariff measures (NTMs) differs across quality segments of import market. NTMs reduce total import and force exit, while import from continuing partners increases, as well as their prices. Such effects are especially large for low‐end varieties. We construct a model to explain the difference between NTMs and tariffs and the various effects of NTMs at the low end of the quality distribution. We model two competing effects. First, NTMs impose minimum quality standard. Second, NTMs also inform consumers about import quality in a way that is particularly advantageous to low‐end varieties. The model predicts how these competing effects can force exit, while also altering market shares of continuing varieties.

Estimating the Impacts of Non-Tariff Measures in the Indian Ocean Rim Association

In recent years, the Indian Ocean Rim Association has witnessed an increasing trend in the use of non-tariff measures (NTMs). This study evaluated the impact of NTMs in the Indian Ocean Rim Association through estimations of their ad valorem equivalents at the HS chapter and country levels. A gravity model using NTM count data (intensity) was specified and estimated to derive the importer-specific ad valorem equivalents for the four (4) most used NTMs in the region. The results showed the presence of both import-impeding and import-promoting effects of NTMs; however, the import-impeding effects dominated in the region. The quantitative restriction and safeguard measures were more restrictive compared to the sanitary and phytosanitary measures and technical barriers to trade. This was expected since quantitative restrictions are trade-distorting by design. This calls for reforming trade policy in the region toward NTMs that are more transparent and trade enhancing for successful subsequent trade negotiations in the Indian Ocean Rim Association, which would support the sustainable economic development of the region.

THE MAIN APPROACHES TO ASSESSING THE IMPACT OF NON-TARIFF MEASURES ON INTERNATIONAL TRADE

The article deals with analysis of the main approaches to assessing non-tariff measures of government foreign trade regulation on foreign trade indicators. The article lists the factors which make it difficult to solve the problem: diversity of non-tariff measures, their using not only at the border but also within the country, effect uncertainty and frequent lack of quantification of such measures. It is also noted that non-tariff measures effects are usually determined by assessing changes in volumes and terms of trade with various methods. The frequency analysis method defines the coverage of imported goods by non-tariff measures as a share in the volume of imports or in the number of commodity items. The price gap assessment method defines the changes in the in-country prices under the influence of non-tariff measures. Survey method allows to obtain various estimates of these measures effects from business, index analysis method – to calculate index assessments of non-tariff measures effects, including based on survey data. Econometric method estimates the qualitative effects of non-tariff measures, including changes in the volume of exports or imports. The article considers each of these methods with the highlighting of their advantages and disadvantages.

Labour Market Effects of Non-tariff Measures: A Computable General Equilibrium for the Food Processing Sector in Malaysia

Non-tariff measures (NTMs) affect the labour market indirectly through trade. However, much ambiguity surrounds the labour market effects of NTMs, as conditions of the labour market are somewhat contextual. With a specific focus on the highly regulated food processing sector in Malaysia, this paper examines the impact of reductions in ad valorem equivalents of NTMs on employment and wages using a computable general equilibrium model. The simulations indicate positive gains to employment following reductions in NTMs in the short and long run. In the long run, employment gains and wage losses are observed for the unskilled group. The findings justify the need to complement the NTM reform with other mechanisms to address the likely rise in low-quality jobs in the food processing sector.

비관세조치의 국내 고용효과

본 연구를 통해 보호무역주의 강화에 따른 무역환경의 변화가 한국의 고용에 미친 영향을 실증적으로 분석하였다. 이를 위해 對한국 비관세조치에 연계된 HS 6단위 품목정보를 이용하여 외국의 비관세조치가 수출 경로를 통해 국내 고용에 간접적으로 미친 영향을 산업 수준에서 추정하였다. 추정의 신뢰성을 제고하기 위해 비관세조치를 수출의 도구변수로 하는 2단계 IV(2SLS) 추정방법론을 준용하였다. 추정결과, 외국의 비관세조치는 수출을 저해하는 요인으로 작용하였으며 국내 고용에 부정적인 영향을 미치는 것으로 나타났다. 이러한 추정 결과는 산업 수준에서 도출된 비관세조치 노출지수의 형태에 관계없이 통계적으로 유의하였다. 비관세조치가 고용에 미치는 영향이 산업의 자본집약도에 따라 이질적일 수 있다는 전제하에 수출과 자본집약도 변수의 교차항을 추가적으로 구성하여 분석을 실시한 결과, 비관세조치가 고용에 미치는 부정적인 효과는 자본집약도가 높은 산업일수록 축소되는 것으로 나타났다.

Effects of Non-Tariff Measures on Seafood Exports from Sri Lanka: A Gravity Approach

Seafood exports are an attractive market, which has globally grown over time. However, access to the international seafood market is difficult as seafood is highly regulated by Non-Tariff Measures (NTMs). A better understanding of NTMs is needed to conquer the global seafood market. The objective of this study is to investigate the changes in the structure of NTMs imposed by importing countries on Sri Lankan seafood products and to determine the effects of NTMs on seafood exports from Sri Lanka. A gravity model was estimated using a panel dataset consisting of NTMs at 3-digit level, tariffs, gross domestic product, distance, and population for 107 countries covering 144 seafood products between 2001 and 2017. Results revealed that the most critical NTM types of Sri Lankan seafood exports are Sanitary and Phytosanitary Measures (SPS), Technical Barriers to Trade (TBT), and Pre-Shipment Inspections (PSI). Growing trends of NTMs and decreasing trends of tariffs indicate a substitution of NTMs in place of tariffs. Country-wise analysis of NTMs showed that developed countries imposed a higher frequency of NTMs than developing countries. Results of the gravity model suggested that NTMs, tariffs, and distance to the importer have a negative effect, and the GDPs of the importers and Sri Lanka have a positive effect on seafood exports. Tariff equivalent values were calculated based on the elasticities obtained from the gravity model. Results depict that the total NTMs, SPS, TBT, and PSI increase the price of seafood by 62%, 48%, 15%, and 13% respectively. This implies that different NTMs have <em>different </em>impacts on seafood exports from Sri Lanka. Hence, the impact of each NTM type warrants separate attention during policy formulation.

The Effect of Non-Tariff Measures on Vietnam Exports

The Effect of Non-Tariff Measures on Vietnam Exports

비관세조치가 세계 감자 무역에 미치는 영향 분석

비관세조치가 세계 감자 무역에 미치는 영향 분석

TRADE POLICY AND MARKET POWER: FIRM‐LEVEL EVIDENCE

AbstractThis article identifies the effect of trade policy on market power through new data and a new identification strategy. We identify market power by observing how exporting firms price discriminate across markets following variations in bilateral exchange rates. Pricing‐to‐market is prevalent in all countries in our sample, even among small firms, although it is increasing in firm size. More importantly, we find that the effect of nontariff measures (NTMs) is not isomorphic to that of tariffs. Whereas tariffs reduce the market power of foreign firms through rent‐shifting effects, NTMs reinforce the market power of nonexiting firms, domestic and foreign alike.

The Effects of Non-Tariff Measures on Agri-Food Trade: A Review and Meta-Analysis of Empirical Evidence

The increasing policy interests and the vivid academic debate on non-tariff measures (NTMs) has stimulated a growing literature on how NTMs affect agri-food trade. The empirical literature provides contrasting and heterogeneous evidence, with some studies supporting the ‘standards as catalysts’ view, and others favouring the ‘standards as barriers’ explanation. To the extent that NTMs can influence trade, understanding the prevailing effect, and the motivations behind one effect or the other, is a pressing issue. We review a large body of empirical evidence on the effect of NTMs on agri-food trade and conduct a meta-analysis to disentangle potential determinants of heterogeneity in estimates. Our findings show the role played by the publication process and by study-specific assumptions. Some characteristics of the studies are correlated with positive significant estimates, others covary with negative significant estimates. Overall, we found that the effects of NTMs vary across types of NTMs, proxy for NTMs, and levels of details of studies. Not negligible is the influence of methodological issues and publication process.

Effect of non-tariff measures on international tea trades

Purpose The purpose of this paper is to analyze the impacts of differences in sanitary and phytosanitary measures as non-tariff measures (NTMs) in the tea trade between importing and exporting countries. With the progress of trade liberalization, there has been a shift of focus to NTMs as alternative or potential trade barriers. Design/methodology/approach In order to quantify an NTM on tea trade and implement its empirical application, this study designed an index of differences in maximum residue levels (MRLs) for the pesticide endosulfan and introduced it into a gravity trade model. The estimation challenges in the presence of heteroscedasticity and many zero-trade flows are resolved by taking the Heckman and Poisson pseudo-maximum likelihood estimators. Findings This study found that differences in MRLs, arising from the stricter standards in importing countries lead to a significant decrease in tea trade value. This negative impact of differences in MRLs is found to be slightly less than that of tariffs, implying that in this case, the NTM acts as a policy substitute for import tariffs in the global tea trade. Originality/value The main contribution of this study is to suggest and quantify the differences in MRLs across countries as a substantial NTM on the global tea trade and provide its empirical application.

The impact of Non-Tariff Measures (NTMs) on Moroccan foreign trade: Comparison between developed and developing countries

The world economy is still far from the ideal model of a barrier-free market, freed from any barriers to trade. In this paper, we will try to analyse the impact of non-tariff measures on Moroccan exportations. The review of the literature shows that the effect of non-tariff measures on international trade exceeds the tariff ones. In order to analyse empirically the impact of non-tariff measures on Moroccan foreign trade, we used the elasticity of imported demand and an estimated gravitational equation for a sample of 28 countries of different levels of development. Our database consists of 4242 tariff lines during the period 2000-2015. The results show that non-tariff measures negatively affect Moroccan foreign trade. Exporting sectors are not affected to the same degree and suffer more in trade with economically similar countries (Developing countries) than in trade with developed nations.

On the effects of non-tariff measures on Brazilian exports

This article estimates the effects of TBT/SPS measures on Brazilian exports, based on the recent literature of gravity models. A Heckman selection model - theoretically grounded on the seminal Melitz model of heterogeneous firms - highlights the role played by zero trade flows as well as firm heterogeneity for estimations using gravity equations, two factors usually omitted in standard specifications. We show that both extensive and intensive margins of Brazilian exports are, on average, negatively affected by pre-existing TBT and SPS measures. Moreover, we contribute to the empirical literature by providing comprehensive evidence of the sectoral effects of such measures over domestic exports. We find that TBT/SPS measures - though predominantly harmful - can foster exports in several sectors of the Brazilian economy.

AS MEDIDAS APLICADAS AOS ACORDOS SPS E TBT SOBRE AS EXPORTAÇÕES BRASILEIRAS DE FUMO

O presente estudo tem como objetivo analisar os efeitos das medidas não tarifárias, especificamente as medidas sanitárias e fitossanitárias - SPS e medidas técnicas - TBT, sobre as exportações brasileiras de fumo e se tais efeitos permaneceram nos períodos subsequentes à emissão das notificações. Para tal, foi estimado um modelo gravitacional utilizando uma amostra de 89 países importadores do fumo do Brasil entre o período de 1997 a 2011. O método utilizado na estimação das equações foi o modelo Poisson-Pseudo Maximum Likehood-PPML. Os resultados obtidos mostram que as medidas ou SPS afetaram negativamente o fluxo internacional do comércio de fumo. Além disso, verificou-se que esses efeitos perduraram nos períodos posteriores à emissão da notificação, sendo que as empresas exportadores podem demorar até dois anos para se ajustarem às exigências requeridas. Dentre os objetivos das notificações SPS, a maior parte está relacionada a medidas para proteção da saúde humana e proteção da planta, o que pode explicar a maior dificuldade de adequação, pois são exigências que demandam grandes investimentos. Já as medidas TBT não foram estatisticamente significativas, confirmando o caráter não restritivo dessas notificações sobre o comércio internacional de fumo. Apesar da maior parte das notificações ao fumo estarem associadas a medidas técnicas, os resultados indicaram que elas não configuraram como barreiras ao comércio de fumo. Isso pode sugerir que as exigências a elas referidas, que, em sua grande maioria, foi referente à rotulagem e/ou embalagem, foram atendidas pelo Brasil sem maiores dificuldades. Dessa forma, torna-se importante a inclusão de questões referentes à regulamentação dessas medidas nas discussões e processos de tomada de decisão das empresas exportadoras de fumo. Em termos de ações governamentais, seria interessante a criação ou aperfeiçoamento de políticas no sentido de aumentar o caráter informativo das medidas sanitárias, principalmente as que envolvem questões relacionadas à saúde humana e proteção da planta, de forma a reduzir o tempo que as empresas exportadoras utilizam para se adequar a tais exigências.

PROLIFERATION OF NON-TARIFF MEASURES IN CHINA — THEIR RELEVANCE FOR ASEAN

This paper explores various non-tariff measures (NTMs) that co-exist in China and that directly influence imports into the country. Given the intensity and scope of technical measures imposed by China, the directional impacts of technical barriers to trade (TBTs) on bilateral Association of Southeast Asian Nations (ASEAN)-China exports are investigated empirically using an augmented gravity model. The results imply that Chinese TBTs do have some trade depressing effects from the ASEAN perspective. However, sectoral trade effects of TBTs are important as dual effects exist even within some TBT intensive product groups. This informs the policy debate on the effects of NTMs from the ASEAN-China perspective more specifically, and the "South–South" context more generally on two fronts. First, the identification of specific trade restricting measures for the affected sectors will assist in determining policy priorities within the ASEAN-China context. Second, trade facilitation measures that increase the business costs to the ASEAN exporters also warrant attention in addressing the scale of market access issues in China.

Proliferation of Non-Tariff Measures in China – Their Relevance for ASEAN

This paper explores the various non-tariff measures (NTMs) that co-exist in China and that directly influence imports into the country. Given the intensity and scope of technical measures imposed by China, the directional impacts of technical barriers to trade (TBTs) on bilateral ASEAN-China exports are investigated empirically using an augmented gravity model. The results imply that Chinese TBTs do have some trade depressing effects from the ASEAN perspective. However, sectoral trade effects of TBTs are important as dual effects exist even within some TBT intensive product groups. This informs the policy debate on the effects of NTMs from the ASEAN-China perspective more specifically, and the “South-South” context more generally on two fronts. First, the identification of specific trade restricting meaures for the affected sectors will assist in determining policy priorities within the ASEAN-China context. Second, trade facilitation measures that increase the business costs to the ASEAN exporters also warrant attention in addressing the scale of market access issues in China.

The Effects of Non-Tariff Measures on Prices, Trade, and Welfare: CGE Implementation of Policy-Based Price Comparisons

The global economic effects of eliminating certain significant categories of nontariff measures (NTMs) are estimated in a CGE context. As a first step, a database of institutional information identifying alleged instances of NTMs for particular products and countries is constructed based on WTO, U.S. Government, and EU sources, and compared with the UNCTAD policy inventory. This database is then concorded to a GTAP-feasible multiregion, multisector aggregation. Retail price data from the EIU CityData database, similarly concorded, are analyzed econometrically, taking into account systematic deviations from purchasing-power parity, to determine whether and to what extent the presence of alleged NTMs is associated with significantly higher prices. The estimated price effects are then used to calibrate a CGE simulation in order to obtain simulation estimates of trade and welfare effects of their removal, which can be disaggregated. Removal of the categories of NTMs under consideration yields global gains on the order of $90 billion. These gains arise notably from liberalization by Japan and the European Union by region, and from liberalization of apparel and machinery/equipment by sector.