Impact Of Non-tariff Barriers Research Articles

Intelligent evaluation of trade efficiency of agricultural products between China and ASEAN: An stochastic frontier approach with noise reduction

As the world’s largest free trade area among developing countries, the China-ASEAN Free Trade Area has gone through 15 years, and the China-ASEAN (Association of Southeast Asian Nations) Free Trade Area cooperation framework with tariff reduction as the core has diminished incentive effects on regional trade, the “21st Century Maritime Silk Road” strategy provide new opportunities for the upgrading and development of the China-ASEAN Free Trade Area. Based on the stochastic frontier gravity model, the random disturbance term was introduced to overcome the inevitable noise problem of macro statistical data, the trade efficiency of agricultural products between China and ASEAN were estimated in this study. The result shows that the potential for trade promotion between China and ASEAN countries is fully tapped. Based on this, it is proposed to strengthen infrastructure construction and smooth maritime trade channels with the help of the “One Road” platform. Strengthen communication and dialogue to weaken the impact of non-tariff barriers on trade, and use the Shanghai Free Trade Zone test plot to enhance the international competitiveness of Chinese agricultural product trade.

The Trade Effect of the EU’s Preference Margins and Non-Tariff Barriers

Nowadays, trade negotiations afford both liberalism- and protectionism-oriented policies. Indeed, in recent decades, the developed countries have been actively engaged in negotiating many preferential agreements to integrate developing countries (DCs) into world trade and encourage their economic growth, but many of these schemes contrast with the complex rules, often imposed on international markets, that still are an obstacle for exporters. Their presence and related costs reduce the importance of preferential trade agreements (PTAs) in increasing trade flows. This article attempts to assess the impact of preferential trade policies on trade flows controlling for different non-tariff barriers (NTBs), using a structural gravity model. The analysis uses disaggregated data, registered in the year 2017, on EU imports (defined at level HS-6 digit) from a large number of exporters (187 developed and developing countries) and also includes the intra-EU trade. Our results show robust and positive estimates for the impact of preferences on bilateral trade flows, however, higher non-tariff barriers are likely to play a role in reducing both the extensive margins of trade, and so tariff preferences alone are not sufficient to access international markets. The impact of NTBs on the intensive margin of trade is ambiguous; some measures may act as catalysts and therefore increase trade, and others may act as an additional cost of trade and thus hinder trade.

Impact of non-tariff barriers on trade within the Eurasian Economic Union

How great is the impact of non-tariff barriers on trade in the Eurasian Economic Union (EAEU) and how much will internal trade grow if they are eliminated? The Treaty on the EAEU declares removal of non-tariff barriers as a common goal. This article estimates the impact of non-tariff barriers on trade in goods in the EAEU based on 2010–2015 trade data. The empirical approach draws on the Haveman and Thursby disaggregated model. The estimates show that various trade-growth effects can be observed in different trade groups if non-tariff barriers are reduced or fully eliminated. Agriculture and the food industry have the highest growth potential: around 40% growth with a 50% reduction of barriers. The highest growth potential is found for trade between Belarus and Kazakhstan. The most significant effects are observed for member-states that are small in terms of the size of the economy and for which the internal trade share is large.

Taking the Measure of the TPP as Negotiated

We assess the impact of the Trans-Pacific Partnership (TPP) as negotiated, based on the actual text and liberalization schedules, supplemented by the technical summaries provided by various governments interpreting the outcome of the negotiations. In addition to the impact of tariff reductions and the expansion of agricultural market access through tariff rate quota concessions, we take into account estimates of likely preference utilization, and the impact of non-tariff barriers on trade in goods and services and on investment. We evaluate the latter on the basis of the extent to which the TPP reduces the parties’ scores on indexes measuring restrictiveness of the parties’ regimes for goods, services, and investment. We also take into account the value of binding market access commitments for services trade. We consider the potential spillovers on third parties of higher labour and environmental standards as well as of standards harmonization. We comment on the welfare costs stemming from the administrative burden of preferential trade and from compensating agricultural subsidies promised in some parties’ sensitive sectors; and discuss the implications of the TPP intellectual property regime. The assessment is based on a dynamic specification of the Global Trade Analysis Project model, modified to directly represent goods and services trade conducted through foreign affiliates, as well as on a cross-border basis, and to reflect the impact of liberalization of foreign direct investment.

The impact of non-tariff barriers on maize and beef trade in East Africa

The East African Customs Union was established in 2005 with the aim of increasing intraregional trade. The Customs Union protocol commits member states to eliminate non-tariff barriers (NTBs) to intraregional trade. However, several NTBs are still applied by member states. This study identifies the existing NTBs on maize and beef trade and quantifies their impact on trade and welfare of EAC citizens using a Spatial Equilibrium Model (SEM). Data on NTBs were collected from traders and transporters of maize and beef cattle in East Africa. Roadblock checks, bribes and custom rules and procedures were identified as the main NTBs to trade. The SEM model shows that a 50% reduction of the cost of NTBs, or their complete elimination would improve social welfare in EAC. The study recommends: removal of the NTBs; improved efficiency in administrative procedures; and establishment of a monitoring system to track the effectiveness of implemented initiatives to remove barriers to trade.

The Impact of Non-tariff Barriers on China’s Textile and Clothing Exports and Relevant Strategies

The textile and clothing industry is a traditional pillar industry for China’s economy. We have developed rapidly in international textile and clothing trading and have gained significant achievements in this field with reform and opening-up to the international market. China also expects to maintain this prevailing trend and to even increase the volume of exports with the gradual reduction of tariffs and the elimination of quotas. With these gains, however, a number of problems have arisen that may threaten the future of the Chinese textile and clothing industry.World trade liberalization doesn’t necessarily mean free markets. The industry is still facing great challenges and difficulties from non-tariff barriers which are playing an ever-greater role in the ability of governments to regulate imports from other countries. Known as “green trade barriers”, new non-tariff barriers to trade, such as technical trade barriers and environmental trade barriers, have taken the place of traditional trade barriers, such as tariffs and quotas. By analyzing the background and current situation of China's textile and clothing industry, as well as the great impact on both sides of these new barriers, this paper puts forward an effective way to clarify what efforts should be made not only by trade companies, but also by the government to alleviate the effects of NTBs. Only through a well-coordinated joint-effort can manufacturers break through such non-tariff trade barriers and enhance the overall quantity and quality of clothing exports, so that China can maintain its current growth in the textile and clothing trade and also regain its reputation as the “kingdom of textiles”.

Quotas on Clothing Imports: Impact and Determinants of EU Trade Policy

We assess the impact of the phasing-out of quotas on European clothing imports within the framework of the phase-out of the Multi-Fiber Agreement and the accession of the CEEC. We use 1996 data on trade barriers for 20 categories of clothing products and 22 exporters. The estimation of a standard gravity equation concludes that tariffs have a large and negative impact as expected but seldom corroborated in the literature. The negative impact of non-tariff barriers also appears clearly after controlling for an endogeneity bias by the instrumental variables method. The phasing-out of quotas should increase EU imports by 20%.

The relative price discipline of domestic versus foreign entry

In this paper we combine data on industry entry, imports, and producer price indexes for 46 4-digit SIC industries over the 1972 to 1987 period to determine the impact of entry on industry pricing. Domestic entry's restraining influence is weak and occurs only at high levels of concentration while import changes exhibit a procompetitive influence for lower levels of concentration that include nearly all industries in the sample. In addition, the threat of foreign entry plays a role in disciplining domestic pricing; the impact of nontariff barriers on price changes seems to increase with concentration levels.