Non-tariff Barriers Research Articles

Research on the Development Path of Industrial Internet Eco-Platform in the Context of China's Economic Digitization

The continuous innovation and promotion of digital technology represented by big data, cloud computing and artificial intelligence have accelerated the development of a new round of technological revolution. The new round of technological revolution presents intelligent and networked characteristics, digital economy and digital technology to empower China's economic form to digital transformation, giving rise to a number of new business forms, new models, and bringing new opportunities. However, China is still facing problems such as a large digital divide, digital security threats, difficulties in implementing digital taxes, serious non-tariff barriers, difficulties in the digital transformation of enterprises and a lack of digital talents. Therefore, relevant research on the connotation and characteristics of the digitalisation of China's economy should be strengthened to provide theoretical support for China's economic transformation and high-quality development.

Regional trade agreements and economic integration in Africa: assessing the impact of the African Continental Free Trade Area (AFCFTA)

This article examines the impact of Regional Trade Agreements (RTAs) on economic integration in Africa, focusing on the African Continental Free Trade Area (AfCFTA). As the largest free trade area globally, AfCFTA aims to create a unified market for goods and services across 55 African Union member states, fostering economic growth, reducing trade barriers, and enhancing intra-African trade. This article assesses the potential economic benefits of AfCFTA, including increased market access, industrialization, and job creation. It also considers the challenges of implementation, such as infrastructure deficits, varying levels of economic development, and non-tariff barriers. Through case studies of key African economies, including South Africa, Nigeria, and Kenya, the article explores how AfCFTA is reshaping trade dynamics and regional cooperation. Furthermore, it evaluates the role of AfCFTA in addressing Africa’s dependence on external markets and enhancing global competitiveness. The article concludes by providing recommendations for policy reforms, capacity building, and regional cooperation needed to maximize the benefits of AfCFTA. By analyzing both opportunities and challenges, this article offers insights into how AfCFTA can drive deeper economic integration and sustainable development across the African continent.

한국의 대외 수출에 미치는 TBT와 미통보 기술 규제의 영향분석: 중력모형과 PPML 방법론을 통한 접근

This study investigates the impact of Technical Barriers to Trade (TBT) and unnotified technologies on South Korea’s foreign exports, analyzing the background and objectives. With the expansion of regional economic blocks such as FTAs, the EU, and NAFTA, the scope of non-tariff barriers, including TBT and Sanitary and Phytosanitary (SPS) measures, has broadened. These non-tariff barriers, often implemented for safety purposes like environmental protection, can increase shipping and compliance costs, imposing a burden on domestic industries. The main objective of this study is to quantitatively evaluate the effects of TBT and unnotified technologies on South Korea's exports across various industries from 1995 to 2022. To achieve this, we employ the gravity model, one of the most widely used models in explaining trade conflicts, alongside the Poisson Pseudo Maximum Likelihood (PPML) method, which is suitable for handling the complexities of trade data with zero trade flows. This approach enables a detailed analysis of the impact of TBT and unnotified technologies on export performance, disaggregated by objective and industry. The results reveal that while TBT has a positive effect in promoting exports, unnotified technologies have a negative impact. These findings highlight the importance of distinguishing between the two in international trade negotiations.

Effects of Non-Tariff Barriers on Promotion of East African Community Integration: A Case of Magasins Généraux du Rwanda

Regional integration in East Africa has proven to strengthen investments within member nations. However, differing non-tariff barrier policies among East African Community (EAC) partner states have posed significant challenges to progress. This study assessed the effects of non-tariff barriers on the promotion of EAC integration, using Magasins Généraux du Rwanda (MAGERWA) as a case study. Specifically, the study evaluated the effects of technical barriers to trade, analysed the impact of import quotas, and scrutinised the effects of foreign exchange restrictions on EAC integration. The study was anchored in three theories: Liberal Intergovernmentalism Theory, Economic Integration Theories, and the Heckscher-Ohlin Theory. It used a descriptive research design with both quantitative and qualitative approaches. The target population consisted of 2,045 individuals. A sample size of 335 was determined using the Yamane formula and selected through both simple random and purposive sampling techniques. Data were collected using a questionnaire survey and analysed using SPSS version 26. Bivariate analysis, including P-values, was used to evaluate the relationship between independent and dependent categorical variables. Descriptive statistics such as mean and standard deviation, as well as single and multiple logistic regression models, were used to assess the strength of the relationships. A p-value < 0.05 and a 95% confidence interval were used for inference. Results were presented in frequency and cross-tabulation tables. The study found that technical barriers to trade had a statistically significant relationship with the promotion of EAC integration (r = 0.953, p<0.05). Similarly, import quotas showed a significant relationship with EAC integration (r = 0.954). Foreign exchange limitations also demonstrated a significant correlation with EAC integration, with a correlation coefficient of.966. The regression analysis showed a mean square of 199.267 and a residual mean square of 0.107, with an F-value of 1864.147 and a p-value of.000b. The researcher suggested that EAC member states should implement the planned goals of the community to promote free trade in the region, thereby enhancing economic integration.

How Product Standards Influence Tea Exports? Empirical Evidence from India

India has witnessed a declining trend in tea exports in the recent period, which can partly be attributed to competition from exporters (e.g., Kenya and Sri Lanka) enjoying price advantages over the Indian varieties. However, although after the inception of the World Trade Organization (WTO) in 1995, the tariff barriers on Indian tea exports have come down across developed partners, the incidence of non-tariff barriers (NTBs) has emerged as a challenge in many destinations, with a possible dampening effect on exports. The present analysis attempts to analyse whether the imposition of product standard related measures, particularly sanitary and phytosanitary (SPS) and Technical Barriers to Trade (TBT) interventions, may have negatively influenced Indian tea exports over the period 1996–2021. Rather than considering the mere presence of SPS–TBT standards in major partner countries, their potential impacts on Indian tea exports have been determined by analysing the stringency levels of the corresponding notifications submitted to the WTO. The constructed stringency patterns are then incorporated into the Poisson pseudo maximum likelihood estimation models. The observed negative influence of standard-related measures in partner countries on Indian tea exports calls for policy interventions to enable the sector to better ensure compliance in the future.

Strategy for Increasing Exports of Indonesian Palm Oil

Abstract Palm oil and its derivatives contribute to 13% of Indonesia’s total exports. Indonesia has a significant opportunity to become a major player in the global palm oil trade but faces threats in expanding market access and even maintaining existing markets. This research aims to analyse the strengths, weaknesses, opportunities, and threats in the plantation sector, especially palm oil, in Indonesia, using competitiveness analysis and Export Product Dynamic to formulate strategies for enhancing the export of palm products and derivatives. From this analysis, it is concluded that Indonesia has strength in its geographic conditions, but needs to strengthen human resources, especially in the agricultural sector, and add value to export commodities beyond raw materials. With the growth of the international market and the increase in the number of free trade agreements held by Indonesia, the potential for developing market access for palm and its derivatives is likely to expand. However, Indonesia also faces non-tariff barriers and environmental unfriendliness stigma, resulting in rejection or obstacles for Indonesian products to enter export destination countries. Strategies to be explored further include expanding into emerging markets while maintaining traditional markets, optimizing research and development for upstream efficiency and downstream derivative product diversification, improving sustainable palm oil industry governance, and enhancing domestic policies to support the palm oil industry.

CHEER and markets’ integration: evidence from selected East Asian economies

Purpose This paper aims to investigate markets’ integration using the capital enhanced equilibrium exchange rate (CHEER) model for seven, highly competitive, East Asian countries. Design/methodology/approach The sample consists of monthly observations, whereas unit root and cointegration techniques with structural shifts have been used. Findings The evidence shows that the weak form of the CHEER approach holds for Malaysia and Thailand. For China, Japan, Korea, Singapore and Taipei, only the uncovered interest parity condition is validated, implying capital markets integration. In contrast, for these five countries, the results indicate absence of goods’ markets integration. This outcome can be attributed to the impact of quite high non-tariff barriers and the Balassa–Samuelson effect. Originality/value To the best of the author’s knowledge, this is the first study that investigate markets’ integration in several East Asian economies, using the CHEER approach and more accurate price indices.

Regional Comprehensive Economic Partnership Can Boost Value-Added Trade in Food and Non-Food Sectors in Asia-Pacific Economies.

This study examines the effects of the Regional Comprehensive Economic Partnership (RCEP) on the value-added trade of food and non-food sectors. This study uses a global computable general equilibrium (CGE) model coupled with an extension module for the origin decomposition of value-added flows embodied in gross trade. The results suggest that by cutting down tariff and non-tariff barriers, the RCEP would significantly stimulate the economies of and gross trade among Asia-Pacific countries involved in the agreement. The potential benefits of the RCEP will be overestimated if we ignore the origin of value added and measure the benefits by gross exports. The domestic components of bilateral value-added flows between RCEP members would increase greatly, indicating an increasingly integrated value chain between RCEP members. Import taxes and non-tariff barriers for processed food, textiles and clothes, and heavy manufacturing are relatively significant in the region, so the RCEP would significantly improve their value-added exports. The domestic component of value-added exports in agricultural products and processed food from RCEP members would be increased significantly, indicating that the closely integrated food value chain boosts the food economies of RCEP members.

Japan and South Korea's engagement in the Chinese market post-RCEP implementation: A case study of the semiconductor industry

After the RCEP implementation in 2022, trade differences emerged between Japan and South Korea with China, especially in semiconductors. Japan's exports to China declined, while South Korea's grew. This study uses qualitative and quantitative methods to explain post-RCEP semiconductor trade differences, focusing on value chain complementarity, new tariff rates, and U.S. factors. Three conclusions: 1) Within the global value chain, the different positions of Japan and South Korea in the semiconductor sectors compared to China result in varying levels of market complementarity between Japan and China and South Korea and China; South Korea, in particular, exhibits a significantly higher potential market. 2) In terms of reducing tariff barriers under RCEP, compared to Japan, South Korea experienced a more substantial decline in semiconductor tariff rates in the Chinese market. 3) The non-tariff barrier sanctions imposed by the United States on Chinese semiconductors in 2022 influenced trade choices for Japan and South Korea. Japan, being more loyal to the United States, tends to align with U.S. policies, leading to a reduction in semiconductor trade with China.

TREND AND GROWTH OF INDIA’S AGRICULTURAL EXPORTS IN THE POST-REFORM PERIOD

The study is focused on evaluating the growth and trend of India's agricultural exports after the implementation of economic reforms. The changes in the composition and volume of agricultural exports and imports in the post-reform period, especially after the economic reforms of 1991, demonstrate significant shifts in India's agricultural trade. The liberalization measures adopted during this period, with the aim of integrating the Indian economy into the global market, have deeply influenced the agricultural sector. The post-reform period has seen substantial growth and diversification in India’s agricultural trade, influenced by liberalized trade policies, global market dynamics, and technological advancements. While opportunities for expansion remain, addressing challenges such as climate change, market access, and sustainability will be crucial for future growth. The results indicate that India's agricultural exports have experienced remarkable growth from 1990–1991 to 2020–2021. India's agricultural exports grew from $3.35 billion in 1990-91 to $35.93 billion in 2019-20, marking a nearly 12-fold increase over 30 years. The country is currently facing significant challenges such as low productivity and high logistics costs, limited value addition, challenges in export promotion and branding, non-tariff barriers, and quality issues.

Peran Perdagangan Internasional dalam Mendorong Pembangunan Ekonomi dalam Mengentasan Kemiskinan di Indonesia

This research aims to determine the impact of international trade on Indonesia's economic growth. The type of research used is a literature review approach with a comprehensive search of academic databases, articles, journals and books. International trade plays an important role in driving Indonesia's economic growth through exports, product diversification and international partnerships. This study also highlights the challenges Indonesia faces in international trade, including fluctuations in currency exchange rates and the impact of global economic trends. This research concludes that international trade has an important role in forming the foundation of the Indonesian economy and positioning it as a major player in the global market. The study recommends that the government implement policies that support international trade, such as reducing tariff and non-tariff barriers, to increase the country's competitiveness in the global market. In addition, this study suggests that the government should focus on developing human resources and infrastructure to support industrial growth that can contribute to the country's economic development and poverty alleviation.

Import Dynamics in the Central and Eastern European Countries

The dynamics of imports in Central and Eastern European countries are closely related to foreign direct investment and government policies. By reducing tariff and non-tariff barriers to imports and promoting trade and investment liberalization, governments can attract foreign capital and diversify the range of products and services available in the host economy. This interconnection between imports and foreign direct investment can have a positive impact on economic development and global integration, depending on national strategies and policies. The article examines the dynamics of imports in Central and Eastern European countries in relation to foreign direct investment and government policies and aims to identify trends, import differences, and adjustments made by each country to improve their economic development. The research highlights the ongoing evolution of international trade in the region and advocates for a strategic approach to trade and economic policy for economic expansion and resilience to external shocks.

Genesis of economic integration of Ukraine into the EU

The paper examines the genesis of economic integration of Ukraine to the EU. The purpose of the paper is to investigate the genesis of economic integration of Ukraine to the EU and develop recommendations for their development. The result of bilateral trade integration following the implementation of the consolidated and all-inclusive free trade zone was the modernization of Ukraine's trade policy. The primary dominants may include: the increase in trade turnover between the countries and the increase in the share of European countries in the structure of foreign trade of Ukraine; changes in import duties; improved access to the market; harmonization of legislation; establishment of tariff quotas; а further reduction in non-tariff barriers to trade; home ownership of the region is one hundred percent improved robotic work; harmonization of the technical regulation system; systems of standardization, metrology, conformity assessment and market visibility; sanitary and phytosanitary visits; Strengthening the protection of intellectual rights. The genesis of economic integration of Ukraine to the EU was investigated. An analysis of the Vikonanny Ugodi about association for 2022 and 2023 was carried out. We have analyzed the strengths and weaknesses, the emerging opportunities and threats to the integration of Ukraine into the EU. Directly from further scientific research, it is important to look at the most important aspects of the economic integration of Ukraine, since the most important payments will ensure the formation of the revenue side of the budget from further It is re-divided into different socio-economic goals of the state.

Economic diplomacy: Analyzing theories and models for informed policy

This paper examines the intricate relationship between economic theories, trade policies, and diplomatic engagements in the context of international relations. Utilizing theoretical frameworks such as the theory of comparative advantage and the Heckscher-Ohlin model, we analyze the foundational principles guiding global trade and policy-making. We explore the role of probabilistic models, including Bayesian statistics and regression analysis, in forecasting economic trends and their implications for international relations. Furthermore, we investigate the impact of trade policies, including tariffs, non-tariff barriers, and global trade agreements, on economic dynamics and diplomatic interactions. Through case studies of economic sanctions, we assess the effectiveness of sanctions as a diplomatic tool and propose policy recommendations for their optimal implementation. Our analysis highlights the complexity of economic diplomacy and underscores the importance of quantitative analysis in informing policy decisions and fostering international cooperation.

Real Exchange Rate, Exports, and Imports Movements: A Trivariate Analysis

The exchange rate exerts a strong influence on a country’s trade. It is depicted from the high correlation between the real exchange rate and exports (0.90) and that between the real exchange rate and imports (0.88). In the present-day scenario of falling levels of tariff and a reduced number of non-tariff barriers, the exchange rate has assumed a crucial role in influencing the trade deficit. Imports have a very significant association with exports as shown by the correlation between exports and imports (0.97). The increase in exports in the absence of surplus stocks requires an increase in production, which in turn requires capital and raw material. We analysed the long-run relationship and the short-run dynamics among the three variables. It is concluded that there exists a long-run relationship between real exchange rate, exports, and imports; and real exchange rate is negatively associated with the exports and positively associated with the imports. In the short-run, imports and exports adjust towards their equilibrium when there is disequilibrium. But the adjustment in the imports is greater than the adjustment in the exports. Moreover, exports do not respond to the shock caused by the real exchange rate, but imports respond to the sudden shock in the real exchange rate. The study ends up with the note that the sudden movements in the real exchange rate do not affect exports. Therefore, Pakistan should not worry about exchange rate shocks.

Impact of Trade Liberalisation and MSME Classification on Productivity of Indian Manufacturing Firms

This article examines the effects of tariff and non-tariff reductions on firm-level productivity of large as well as Micro, Small and Medium Enterprises (MSMEs) in India’s manufacturing sector for the 1999–2009 period. We calculate input and final goods tariffs, effective rates of protection and non-tariff barriers (NTBs) for broad product groups using information from India’s Exim Policy of 1997–2003 and 2004–2009 to examine this impact. We use a balanced as well as unbalanced firm-level panel data set, while accounting for firm, industry, state and time-specific factors. By using fixed effect models and Heckman’s two-step estimation procedure, we find that trade liberalisation is associated with improved firm-level productivity for large firms but not in the case of MSMEs. We posit that this might be due to the relative disadvantages that Indian MSMEs face which prevent them from benefiting from trade liberalisation. We also find that productivity gains arising from the sourcing of imported inputs have been greater than those arising from increased product competition and that NTB liberalisation has had a greater impact compared to tariff liberalisation on firm-level productivity. Changes in MSME legislation and the classification of firms are also found to have a bearing on firm performance. Our study contributes to the literature by confirming the need to focus specifically on constraints faced by MSMEs if they are to benefit from trade liberalisation. It highlights the importance of liberalising trade in intermediates as well as the role of MSME classification in enabling productivity gains. JEL Codes: L6, D24, L1, F13

A decade of Eurasian integration: An ex-post non-parametric assessment of the Eurasian economic union

This paper provides a sound ex-post evaluation of the impact of the Eurasian integration on member countries’ bilateral trade after a decade of implementation. We overcome the main limitations of current empirical analyses on the effects of trade agreements, namely the aggregation of tariff and non-tariff barriers and the likely self-selection bias, by applying a non-parametric method specifically designed to fully exploit time-series cross-sectional data. We thus compare the trade flows of the member countries in the Eurasian agreement with the exporter-importer pairs located in the Eurasian continent, which are most similar in terms of pre-treatment trends and features. Our results confirm the previous literature about the lack of a significant impact of the Eurasian customs union but find more positive net effects of the more recent integration steps. Our results ask for additional efforts to complete the Eurasian integration and let its member countries fully benefit from its hoped-for long-term effects.

African Union (Au) and Challenges of Intra-African Trade: A Study of African Continental Free Trade Pact, 2018- 2023.

The study assessed the efforts of the African Union in addressing the challenge of poor intra-African trade using the AfCFTA between 2018 and 2023. The study specifically examined how the implementation of the AFCFTA impacted on intra-African trade profile, as well as how the African Union fared in deepening Africa’s market integration using the mechanisms of the AfCFTA. Anchored on the documentary method and Neo-functionalism, the study ascertained that the implementation of the AFCFTA has undermined the intra-African trade profile. The study also revealed that the African Union has not fared well in deepening Africa’s market integration using the mechanisms of the AfCFTA. Accordingly, the study contends that the AfCFTA deal, though a laudable initiative, may not surmount the enduring structural challenges to regional integration to reposition African economies and expand opportunities for all Africans as projected. The study thus underscores the fact that despite AfCFTA deal, Africa is likely to remain an ultimate loser in the growing regional trade arrangement which is a major feature of the world trading system. Among others, the study recommends that the African Union, through the mechanisms of AfCFTA, should work towards removing all non-tariff barriers and reducing tariff barriers that undermine intra-African trade. Keywords: AfCFTA, Intra-African Trade, Market Integration, Non-Tariff Barriers, Region Trade Challenges.

Die ökonomische Bedeutung des Brexits

Abstract On January 1, 2021, Great Britain (England, Scotland and Wales) left the EU single market and customs union. Although the Trade and Cooperation Agreement between the UK and EU ensures that no tariffs or quotas are to be imposed on traded goods, there are still numerous non-tariff barriers to trade. These added a significant layer of trade complexity that did not exist pre-Brexit and it was thus inevitable that there would be ramifications for the UK economy. Carefully judging this impact is a complicated task, however, as a counterfactual must be used: how would the UK economy have fared if it were still in the EU? This difficulty is exacerbated by two other highly significant events affecting the UK economy at the same time, namely the Covid-19 pandemic and the Ukraine war. Disentangling Brexit from all this and deciding what is and is not a Brexit effect makes the evaluation thereof difficult. Nevertheless, there have been a number of studies published that have attempted such a task. UK-EU trade is widely judged to have taken a significant hit due to Brexit, with smaller firms producing a limited range of products being affected the most. The consensus view is that Brexit has also had a negative impact on UK investment levels and GDP, with the latter judged to be approximately 6 % lower than if the UK had stayed in the EU. In the long run, the UK economy may benefit from more skilled foreign labour due to the post-Brexit immigration rules. Nevertheless, any positive effects are likely to be outweighed by the non-tariff barriers in UK-EU trade, acting as a deterrent in exploiting comparative advantage and widely seen as being the main drag on UK productivity.

Policy impact analysis of law No. 11 of 2020 on job creation on palm oil export growth in North Sumatra Province, Indonesia

This study seeks to determine the impact of the Job Creation Law policy on palm oil export growth in North Sumatra Province. Palm oil itself is the largest export commodity in North Sumatra Province. The research method used is a qualitative method with a literature study method. Data collection techniques through primary and secondary data. Data analysis techniques with data reduction, data display and drawing conclusions. The results showed that deregulation of barriers regulated by the Job Creation Law can have a positive impact on the growth of Indonesian palm oil exports. The reduction of non-tariff barriers regulated by the Job Creation Law provides an opportunity for North Sumatra Province to increase its palm oil exports. The Indonesian government through the Job Creation Law prioritizes investments that affect the economy rather than justice and the environment. This condition has the potential to increase deforestation and threaten the survival of communities in North Sumatra Province. It is important to reorganize better policies to maintain a balance between the economy and the environment.