Non-tariff Barriers Research Articles

Identifying markets and developing export promotion strategy for woolen textiles from India

The woollen textile industry in India is an industry in the MSME sector with a few key players but having huge export potential mainly attributed to the abundance of availability of raw material. India is one of the leading producers of wool and woolen products in the world and it is estimated to be the seventh-largest producer of wool in the world. The present paper uses yearly and monthly data of exports of woollen products from India from 2008-2018 collected from UN-COMTRADE to forecast exports from 2016-2022. The paper based on Revealed Comparative Advantage and Export Intensity Index narrows down on top 9 countries where India has a potential for increasing its exports.An attempt has been made to identify the markets using ARIMA Model to forecast the future destinations for woolen exporters. Before applying ARIMA, it is necessary to check the stationarity of the series being forecasted. The paper indicates that the thrust countries of India's exports of woollen textiles are Australia, Bahrain, Brazil, Saudi Arabia, Senegal, South Africa, Senegal and United Arab Emirates. It is found that projected woollen textile exports from 2018-2022 are constant in case of Australia, Bahrain, Brazil and Senegal but rising at an increasing rate for Saudi Arabia, Sri Lanka, South Africa and United Arab Emirates. Thus, this indicates that India needs to gain more competitive advantage to diversify and grow in the identified markets for export and further to enter new markets of various other countries and increase its level of exports in the future. For enhancing exports of woollen textiles from India, it is suggested that, policy makers as well as exporters of Woollen products from India need to work in sync to achieve the objective of export promotion to the identified thrust markets. Favourable terms should be negotiated to meet the non-tariff barriers in the identified export destinations. Initiatives need to be taken to reduce the cost of production, increase manufacturing capacity and integrate the fragmented supply chain.

The Case for Healthy U.S.‐China Agricultural Trade Relations despite Deglobalization Pressures

AbstractThe COVID‐19 pandemic is crippling the global economy and heightening distrust and political disagreements among major countries. Furthermore, ongoing deglobalization efforts taken by firms and countries are fueling the rise of economic nationalism. A prime example is the possible decoupling of US–China economic and trade relations, which the ongoing trade war has already significantly disrupted. This paper analyzes the impacts of COVID‐19 on US agricultural exports to China, especially the added delays and uncertainty regarding China's food imports meeting the US–China phase one trade deal target. I present the views of US farmers and the general public toward China and argue that healthy US–China agricultural trade relations are not only critical for both countries but welcomed by US farmers. I also discuss the possible rise in nontariff barriers following the pandemic as well as trade policies that are increasingly intertwined with political tensions. Finally, I discuss how the US–China phase one trade deal could possibly lead to a more balanced bilateral agricultural trade portfolio with greater share of protein and retail food products.

Evaluating Asian Free Trade Agreements: What Does Gravity Model Tell Us?

This paper evaluates the performance of Free Trade Agreements (FTAs) by analysing the determinants of trade flows of Asian economies for a panel of 31 countries during 2007–2014 using a Gravity model. The estimated results suggest that certain FTAs negatively contribute to trade flows across the region and, that GDP and population, among other factors, can explain total trade flows. This study also finds that trade costs using distance as a proxy has a significant and negative effect on trade. Our results are in-line with the expectations which can be drawn by looking at trends of trade flows in Asia. Thus, a case is attempted for smoothening trade-flows across the region by reducing tariff and non-tariff barriers, pumping in investments on transport infrastructure and improving productivity of the partners as a whole which has positive effects on GDP and thus trade. JEL Codes: F13, F14, C23

Non-tariff barriers removal in the Brazilian coffee industry

PurposeThis study aims to identify and classified non-tariff measures (NTMs) on Brazilian imports of robusta coffee beans, calculated a tariff-equivalent of non-tariff barriers (NTBs) and assessed the effects of removing NTBs from upstream and downstream domestic instant coffee supply chain.Design/methodology/approachThe analysis uses documentary research to identify NTMs and the price-wedge method is applied to estimate a tariff-equivalent. The effects of suppressing the tariff-equivalent were evaluated using a partial equilibrium model with constant elasticity of substitution (Armington, 1969) and by incorporating vertical integration and uncertainty (Hallren and Opanasets, 2018).FindingsThe results show that NTMs seemingly hinder the entrance of coffee beans into the domestic market. The tariff-equivalent was estimated at 13.61%. Suppressing it reveals that the share of domestic coffee beans used to produce domestic instant coffee falls 0.21 p.p. while the share of domestic instant coffee consumed by the international trade rises 8.60 p.p.Originality/valueWhat makes this paper original is that this paper investigated the effects of NTMs in a developing country, namely, Brazil. Although Brazil is one of the largest agricultural producers in the world, it has not appeared in literature in this type of analysis until now. Furthermore, it contributes to the literature on using existing techniques to investigate the impact of NTM removal on individual products in a specific country, in contrast to more recent papers that discuss using multi-country and multi-product data sets at the HTS-6 level. Thus, this paper demonstrates how a case study approach can be useful in quantifying policy changes.

International Trade and Investment and Food Systems: What We Know, What We Don't Know, and What We Don't Know We Don't Know.

Background: Globalised and industrialised food systems contribute to human and planetary health challenges, such as food insecurity, malnutrition, and climate change. International trade and investment can serve as a barrier or enabler to food system transformations that would improve health and environmental outcomes. Methods: This article used health impact assessment (HIA) to analyse what we know, what we don’t know, and what we don’t know we don’t know about the role that trade and investment might play in food system transformations to improve human and planetary health. Results: Evidence exists for the link between trade and investment and the spread of unhealthy food commodities, efforts to impede nutrition labelling, and increased concentration of ultra-processed food and beverage product companies. The role of trade and investment in the reduction of animal sources in human diets is emerging and may include challenging measures that restrict the use of terms like ‘milk’ and ‘burger’ in plant-based alternatives and the promotion of plant-based foods through non-tariff barriers and targeted efforts at regulatory harmonisation. Trade disputes may serve as the forum for battles around state discrepancies in the safety and acceptability of technological innovation in the food supply, as was the case with hormone treated beef between the European Union (EU) and the United States. Corporate social responsibility (CSR) obligations are unambitious but represent welcome progress in balancing public and private interests. Finally, introducing greater policy flexibility, transparency, and participation provides opportunities to shape a modern trade and investment system that can respond to future food system challenges in a timely fashion. Conclusion: Research at the intersection of trade and investment and food systems should address emergent food systems issues, particularly those that intersect health and climate, while policy efforts should be future-proofing the flexibility of the trade and investment system to enable food system design that supports improved human and planetary health outcomes.

CUSTOMS POLICY OF UKRAINE IN THE CONTEXT OF CYCLICAL ECONOMIC DEVELOPMENT

Анотація. Визначено, що економічний розвиток України протягом усього періоду її функціонування був дуже нестабільним. У результаті порівняння тенденцій економічного розвитку України і країн ЄС було визначено, що українська економіка набагато більше схильна до різких коливань економічної активності, тоді як розвиток економік країн ЄС є більш стабільним і передбачуваним без стрімких стрибків економічного розвитку. Проведено аналіз основних факторів, що впливають на циклічність розвитку економіки України. Визначено значний вплив політичної ситуації на економічний розвиток України. Обґрунтовано істотний вплив зовнішньоекономічних факторів на розвиток економічних процесів в Україні. Визначено, що ефективна і виважена митна політика України може сприяти стрімкому розвиткові зовнішньої торгівлі, що допоможе подоланню негативних наслідків циклічності економічного розвитку. Розглянуто створення зони вільної торгівлі між Україною і країнами ЄС у контексті циклічності економічного розвитку. Виявлено основні переваги і вірогідні ризики зменшення тарифних і нетарифних бар’єрів при торгівлі України з країнами ЄС. Розглянуто обсяги торгових потоків між Україною та ЄС, обґрунтовано, що Україна має досить слабку позицію в торговельних відносинах із країнами ЄС, це проявляється у від’ємному сальдо зовнішньої торгівлі з країнами ЄС, а також у превалюванні експорту товарів із низькою доданою вартістю. Проаналізовано обсяги надходжень податків на міжнародну торгівлю до Державного бюджету України, на основі чого визначено, що лібералізація торговельних відноси з ЄС уже в перші періоди створення зони вільної торгівлі привела до досить істотного зниження надходжень мита до Державного бюджету України. Обґрунтовано, що створення зони вільної торгівлі з ЄС було б менш загрозливим з позиції інтересів економіки України, у тому разі якщо б воно відбувалося в період сталого економічно зростання. Ключові слова: економічний цикл, митна політика, мито, міжнародна торгівля, зона вільної торгівлі. Формул: 0; рис.: 3; табл.: 1; бібл.: 10.

Economic Relations between Pakistan and India: Impressions from the Past and Prospects for Future

Pakistan and India have failed to establish substantial and sustained economic relations between them. Despite being neighbours, they couldn't enjoy a good volume of bilateral trade in multiple sectors. This study traces the history of bilateral trade between Pakistan and India. While identifying patterns of trade between them, the study attempts to identify barriers in bilateral trade between them like trade regimes, non-tariff barriers and other discriminatory measures. The study also makes an attempt to address the question concerning how the impediments in bilateral trade can be removed to enhance bilateral trade and economic connections. On the basis of interviews of Key Informants (KIs), this study explores the potential of bilateral trade between Pakistan and India and finds possible sectors where bilateral trade can be augmented. Lastly, this study finds possible sectors where Pakistan and India can initiate joint ventures to seek win-win approach in bilateral economic relations.

Development of the financial policy of the Eurasian economic union countries: tax harmonization

The paper presents an analysis of viewpoints in the debate concerning tax harmonization in integration unions and the results achieved in the Eurasian integration process, focusing on the specifics of taxation in the EAEU member states. The findings have led the author to conclude that there are considerable differences in taxation approaches and the rates of major budget-forming taxes and excises in the EAEU countries and non-tariff barriers still exist in product and services markets, which is an obstacle for mutual trade and access of excisable goods to the markets of union states. Measures to refine taxation systems are identified with a view to expanding budget revenues and ensuring the competitiveness and financial stability of the EAEU member states. Such measures include the establishment of a unified identification system for foreign trade operators (UISFTO), enhancement of electronic services, automation of information exchange between tax and customs authorities and implementation of new tax administration mechanisms in digital trade.

STATISTICAL ANALYSIS OF WORK ACCIDENTS IN SOYBEAN CULTIVATION, OCCURRED IN BRAZIL AND THE CENTRAL-WEST REGION, FROM 2008 TO 2018

A soja e seus produtos derivados são amplamente utilizados para alimentação humana e animal em todo o mundo. O Brasil é segundo maior produtor mundial de soja e o maior exportador, sendo que a região Centro-Oeste detém a maior parte da produção brasileira. No país, o cultivo de soja é classificado como uma atividade que compreende somente cultivo do grão e a produção de sementes, quando esta é complementar ao cultivo. Por meio de dados disponibilizados no Anuário Estatístico de Acidentes de Trabalho, foram analisados os acidentes de trabalho ocorridos no Brasil e na região Centro-Oeste durante o período de 2008 a 2018. Constatou-se que acidentes típicos foram os mais predominantes durante o período (80,67%), apresentando tendência de aumento, e que as ocorrências de acidentes na região Centro-Oeste influenciaram significativamente o cenário nacional. Barreiras não-tarifárias impostas pelos mercados importadores da soja brasileira, que incluem a restrição da utilização de determinados produtos químicos para o controle de pragas, podem contribuir para redução da incidência de doenças do trabalho. Programas com o objetivo de possibilitar a melhoria da saúde e segurança no trabalho rural, como o Soja Plus, que teve início em 2011, podendo influenciar na redução de acidentes sem CAT (Comunicação de Acidentes de Trabalho).

Effect of Non-tariff Barriers on Maize Production and Marketing by Smallholder Farmers in Tanzania

This study assessed the effect of non-tariff barriers (NTBs) on the production and marketing of maize for smallholder farmers in Mbozi and Momba Districts located in Songwe region in Tanzania. A cross-sectional design was employed in gathering primary data. A two-stage stratified sampling procedure was used in the selection of 400 smallholder farmers, who were surveyed using standardized questionnaires. In estimating the effect of NTBs on maize production and supply, the duality model was employed. The results indicate that NTBs have a depressive effect on the quantity of maize produced and marketed. The findings further show that a unit increase in transaction costs attributed to NTBs could reduce the quantity of maize produced by 16 per cent in the two districts. Based on these findings, it is concluded that the quantity of maize produced and supplied by farmers in the two districts decreases with an increase in the NTB costs. The study recommends the reduction and/or removal of the NTBs, which impede maize production and marketing among smallholder farmers. This would help the government to achieve its goals of creating high prices in the surplus districts and attain low consumer prices in the deficit urban centers, thus reducing poverty.

India–ASEAN Trade Relations: Examining the Trends and Identifying the Potential

The Association of South East Asian Nations (ASEAN) is an important trading partner for India. Through its Act East Policy, India seeks deeper economic integration with ASEAN. In this article, we investigate the pattern of trade between India and ASEAN, using comparative advantage by country (CAC) and market comparative advantage (MCA) as criteria, which are more appropriate measures for showing comparative advantage in a specific market. These measures indicate some major Indian exports to ASEAN are not competitive. When domestic industries are not competitive, governments protect them through tariffs and non-tariff barriers, which act counter to deeper economic integration. We also identify the sectors in which India has the potential to become competitive but is not because of distortionary domestic policy measures. These domestic constraints prohibit Indian firms from participating in the ASEAN supply chain network, an important factor in developing deeper economic integration. Two such sectors—namely aluminium automotive components and the ready-made garment industry—are examined as case studies. Notwithstanding these distortionary policy measures, India still offers a bigger market to do business. The ability to supply lower cost chemicals and affordable pharmaceutical products at the time of COVID-19 is an added plus.

Impact of COVID-19 on China's agricultural trade

PurposeThe outbreak of the novel COVID-19 virus has spread throughout the world, causing unprecedented disruption to not only China's agricultural trade but also the world's agricultural trade at large. This paper attempts to provide a preliminary analysis of the impact of the COVID-19 pandemic on China's agricultural importing and exporting from both short- and long-term perspectives.Design/methodology/approachThis study seeks to analyze how the outbreak of COVID-19 could potentially impact China's agricultural trade. With respect to exports, the authors have pinpointed major disruptive factors arising from the pandemic which have affected China's agricultural exports in both the short and long term; in doing so, we employ scenario analysis which simulates potential long-term effects. With regard to imports, possible impacts of the pandemic regarding the prospects of food availability in the world market are investigated. Using scenario analysis, the authors estimate the potential change in China's food market—especially meat import growth—in light of the implementation of the newly signed Sino-US Economic and Trade Agreement (SUETA).FindingsThe results show that China's agricultural exports have been negatively impacted in the short-term, mostly due to the disruption of the supply chain. In the long term, dampened external demand and potential imposition of non-tariff trade barriers (NTBs) will exert more profound and lasting negative effects on China's agricultural export trade. On the other hand, despite panic buying and embargoing policies from some exporting and importing countries, the world food availability and China's food import demand are still optimistic. The simulation results indicate that China's import of pork products, in light of COVID-19 and the implementation of SUETA, would most likely see a sizable climb in quantity, but a lesser climb in terms of value.Originality/valueAgricultural trade in China has been a focal-point of attention in recent years, with new challenges slowing exports and increasing dependence on imports for food security. The outbreak of the COVID-19 pandemic adds significant uncertainty to agricultural trade, giving rise to serious concerns regarding its potential impact. By exploring the impact of the unprecedented pandemic on China's agricultural trade, this study should contribute to a better understanding of the still-evolving pandemic and shed light on pertinent policy implications.

Non-tariff barriers: Ukrainian practice under conflict with Russia and COVID-19

This article deals with the study of Ukraine’s measures of non-tariff barriers during the armed conflict in eastern Ukraine and under the conditions of the COVID-19 pandemic. The first part of the article identifies the reasons for the establishment and genesis of non-tariff barriers to foreign trade. The modern international legal basis of non-tariff regulation and its application in Ukraine is also outlined. Moreover, the impact of the EU-Ukraine Association Agreement 2014 on the mechanisms for setting non-tariff barriers is described. The second part of the article focuses on the characteristics of modern approaches to the classification of measures of non-tariff barriers to trade. Their diversity and lack of a definitive, orderly list in international agreements and national legislation are emphasized. The third part of the article is devoted to the analysis of measures of non-tariff barriers to trade, which were applied by Ukraine in relations with the Russian Federation and under the conditions of the COVID-19 pandemic. Their adequacy to the current crises in Ukraine was stated, but their untimeliness contributed to a significant reduction in efficiency in minimizing the negative impact of crises caused by the aggression of the Russian Federation and the COVID pandemic.

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.

DOMINANTS OF INTERNATIONAL TRADE INTEGRATION DEVELOPMENT

Introduction. The dynamic development of trade and integration processes, their expansion and deepening necessitate the identification of key dominants of this process and the factors that influenced their formation and development. The purpose of the study is to determine the modern dominants of the development of international trade integration and to identify the factors of their formation. Results. The article identifies and substantiates the key dominants of international trade integration, namely: transgeographic spatial localization, which is manifested in the emergence of international trade integration at the interregional and sometimes intercontinental level; trade liberalization, which takes place at both the global and regional levels and is manifested in the reduction of tariffs, removal of non-tariff barriers and the growth of the total number of regional trade agreements; multilevel trade integration - modern integration processes cover not only countries, subregions and regions, but also corporations, small and medium enterprises through their inclusion in global value chains; multilevel implementation of trade integration processes requires the formation of a multilevel regulatory system. The dynamics of the share of exports of interregional and intercontinental trade and integration associations in world exports of goods and services is analyzed. The determining factors of the dominants of international trade integration are singled out and classified. It is determined that economic factors, to a greater extent, affect trade liberalization and multilevel integration processes. Conclusions. Integration processes are an integral part of modern global economic development. They are developing quite dynamically at all levels. Among the modern dominants, it is necessary to single out transgeographic spatial localization, trade liberalization, multilevel trade integration, formation of a multilevel system of regulation. However, it should be added that in a turbulent economic environment, which can generate or transform modern factors, there is a transformation of the dominants of international trade integration. Keywords: international trade integration, trade liberalization, multilevel international trade integration, regional trade agreements, integration associations.

Indonesian maize imports: a gravity approach

The implementation of the ASEAN Economic Community (AEC) will affect the trade flow of goods and services in the ASEAN region. The flow of food from surplus countries to the food-insecure countries will improve national food security. The purpose of this study is to investigate the factors that affect Indonesia’s maize Import in ASEAN trade. The study analyzed the annual data from 1990 to 2016 and cross-section ASEAN member countries, as well as Indonesia’s trading partners such as Malaysia, the Philippines, Thailand, Vietnam, Myanmar, and Singapore. The study applies the Gravity model approach to identify factors that influence maize import in Indonesia. The panel data regression applied to the fixed-effect method. The results show that Indonesian maize imports were influenced by growth in GDP per capita, economic distance, import tariffs, the exchange rate of the Rupiah against the Dollar, the implementation of AEC (ASEAN Economic Community), non-tariff barriers, and the population growth. All the independent variables together affected Indonesian maize imports from Southeast Asia. The empirical results of this study reveal the implications for the development of the production and competitiveness of Indonesian maize. The Indonesian government should strive to increase farm productivity and efficiency to increase maize production.

Trade Remedy Rules for Digital Services: Inapplicability of GATT-type Safeguard Rules

Digitalization considerably complicates the application of previous trade remedy norms to the new and expanding digital services trade, and there is a need to reprioritize and restructure the existing framework to reflect this difference. Emergency safeguard is an essential element in the trade regime, but the classic concept of GATT-type safeguard measures that is based on a dichotomy of tariff and nontariff barriers and clear-cut rules between goods and services are not suitable for regulating the expanding digital services transactions where barriers tend to be much more diverse and less obvious. Hence, a new trade remedy framework must incorporate the elements of convergence, interconnectedness and externality, while taking a sectoral approach, as generic rules on trade remedies that cater to all possible scenarios and sectors are no longer suitable in these realms. It must prioritize rules-making on subsidies and domestic tax schemes, while also considering for issues specific to the digital features such as data flow restrictions and their implications. Digital trade, digital services, trade remedy rules, emergency safeguard, GATT

Analysis on Trade Effect of Green Barriers and on Agricultural Product Export and Maritime Transport in China

Li, L.Y. and Zhu, H., 2020. Analysis on trade effect of green barriers and on agricultural product export and maritime transport in China. In: Bai, X. and Zhou, H. (eds.), Advances in Water Resources, Environmental Protection, and Sustainable Development. Journal of Coastal Research, Special Issue No. 115, pp. 477-480. Coconut Creek (Florida), ISSN 0749-0208.As emerging non-tariff barriers, green barriers have become a new stumbling block to agricultural product export and maritime transport in China. In this thesis, the SPS (Agreementon the Application of Sanitary and Phytosanitary Measures) notified numbers are selected as a measurement index of green barriers to study its trade effect on China's agricultural product export. Research finds that in the current period and the third year, green barriers have a positive effect on the agricultural product export in China and that in the third year, they have a positive market diversion effect on the agricultural product export in China, which enables China's agricultural products to increase their market shares in other countries. Due to the fact that the period from notification to implementation of SPS takes seven to eight months, and that at the same time, the cycle of production adjustment of agricultural products is relatively long, green barriers do not take positive effect until the third year arrives on agricultural product export and maritime transport.

Hambatan Ekspor Crude Palm Oil (CPO) Indonesia ke Uni Eropa pasca Kebijakan Renewable Energy Directive (RED)

Beside Malaysia, Indonesia is also one of the largest Crude Palm Oil (CPO) producer and exporter in the world. European Union is one of Indonesia’s trading partner and the biggest importer of CPO that used for the biofuel production, especially the biodiesel for transportation sector. But, in 2009, European Union released the Renewable Energy Directive (RED) that required all members to used renewable energy for every sector with the minimum requirement 20% for general sectors and 10% for transportation sectors. While this policy will make the European Union countries used the clean energy, RED became a new kind of NonTariff barriers for Indonesia’s CPO that become an important commodity from Indonesia. This paper will explain by the theory of International Political Economy (IPE) by focused into the Neo-Mercantilism to the analysis of Non-Tariff barriers that used by European Union for the CPO import into Indonesia. Besides that, the writer also used a National Interest concept to explain the importance of CPO for Indonesia and European Union Countries that agreed with the RED.

Can the Japanese agri-food producers survive under freer trade? A general equilibrium analysis with farm heterogeneity and product differentiation

The roles of firm heterogeneity and product differentiation in the manufacturing industries have attracted research attention on the “new new trade theory.” The agricultural sectors also produce new goods using product differentiation through breeding, branding, and other activities. In reaction to globalization, the Japanese Government has sought to revitalize its agri-food sectors by promoting exports of differentiated products. This computable general equilibrium study examines the relevance of this policy, focusing on five agri-food sectors other than grains. We simulate Japan’s three trade deals and a policy intervention that cuts fixed export costs to promote exports. We show that only a few agri-food sectors can increase exports and maintain domestic output under freer trade, and that export promotion would markedly increase entrants into export markets and increase exports of the vegetables and fruit, and processed food product sectors. In these trade deals, tariff and nontariff barriers have different impacts on trade, output, and farm/firm entry.