Non-tariff Barriers Research Articles

THE EFFECT OF GOVERNMENT MACROECONOMIC POLICY ON INDONESIA'S FISHERIES EXPORT TO THE UNITED STATES IN 1989-2019

Indonesia is a maritime country that has huge potential in fisheries sector. The average of indonesian fisheries production and export volumes always increase every year. This study aims to analyze the effect of exchange rates, government spending, inflation, interest rates, and sanitation policies to Indonesia fishery export to the United States in 1989-2019. Data were obtained from the Indonesian Ministry of Finance, the World Bank, UN COMTRADE, and the Indonesian Ministry of Maritime Affairs and Fisheries. This study uses the Error Coerrection Model (ECM) method to examine the effect of the independent variables on the dependent variable in the long term and short term. This study explains that in the long-term, government spending and exchange rate have positive effect, and interest rates have negative effect on export. In short-term, government spending and exchange rate have positive effect on export. Inflation and sanitation policy do not affect export in the long-term or short-term, while interest rates in the short-term do not affect Indonesian fishery exports. Keywords: Exports, Government Spending, Exchange Rates, Non-Tariff Barriers, Error Correction Model.JEL: F10, F13, C32

Legal Issues on Subsidies of The Agricultural Products on WTO Frame Work

The WTO was founded with the main objective of building a fair and market-oriented trading system. Fair trade means free and no intervention from anywhere to regulate the market. This applies to all sectors of the economy but especially concerns the agricultural sector which is the basis of a country's defense. Various efforts have been made by the WTO in terms of making trade regulations in the agricultural sector which of course aims to realize this goal. It is well known that in order to stabilize food prices, ensure abundant food production, guarantee farmers' basic income, and in general strengthen the agricultural segment of the national economy, the government has implemented various assistance in the form of assistance to agricultural product producers in the country. This assistance is called a subsidy which can take various forms, namely in the form of tariff barriers, non-tariff barriers, tax levies, positive regulations and direct subsidies to both agricultural producers and exporters. In this study, the authors examine the legal issues regarding subsidies for agricultural products within the WTO framework. The main issue in this legal research is how the legal issues regarding subsidies for agricultural products within the WTO framework. The main objective of this legal research is to find out the legal issues regarding subsidies for agricultural products within the WTO framework. This legal research is a normative legal research in which legal sources are collected through literature study. A relatively detailed review of the content of legal issues regarding subsidies for agricultural products in the WTO framework is discussed in this paper. The results of this study indicate that agriculture is one of the important trade negotiations in the WTO through the rules contained in the AoA. Agreements to implement commitments from disciplines in the AoA, from WTO member countries, are expected to be reached by both developing and developed countries

The impact of the new Northern Ireland protocol: can Northern Ireland enjoy the best of both worlds?

ABSTRACT From the 1 January 2021 the new Protocol on Northern Ireland (NI) regulates NI’s trade with the European Union (EU) and Great Britain (GB). These rules imply divergence between trade arrangements in NI and GB creating an unprecedented situation where trade frictions arise between two regions of the same country. In this paper we use a multi-sector economic model to capture the impact that potential non-tariff barriers and tariffs will have on trade in NI. Simulation results demonstrate that a weaker relation between GB and the EU will have a greater negative impact on the NI economy. However, this may be reduced by the ability of NI firms to substitute intermediate inputs from GB for EU imports.

Shaping new interregionalism: The EU-Singapore Free Trade Agreement and beyond

AbstractThe article examines the theoretical concept of interregionalism in the context of the evolving framework between the European Union (EU) and the Association of Southeast Asian Nations (ASEAN). As the EU’s first free trade agreement (FTA) with an ASEAN country, the EU-Singapore FTA is a pathfinder agreement that signifies a new phase of interregionalism and the EU’s new Asia strategy after the Treaty of Lisbon. The article argues that the innovative designs of the EU-Singapore FTA will shape the normative development of EU-ASEAN relations in the post-pandemic era. It also cautions that a comparative analysis of EU and US agreements reveals deficiencies in the FTA that require remedies. To buttress the contention, key provisions on ASEAN cumulative rules of origin, banking and legal services and non-tariff barriers are analysed in light of contemporary Asian agreements. The research further provides insight into the effectiveness of new-generation rules on geographical indications, competition, and investor-state arbitration and mediation. Hence, the findings contribute to the understanding of interregionalism and the EU’s Asia-Pacific trade and investment agreements from global and interdisciplinary perspectives.

ELIMINATION OF NON-TARIFF BARRIERS OF TRADE IN GOODS IN THE ASEAN REGION: WILL IT EVER WORK?

Within the framework of the ASEAN Economic Community (AEC), there is a mandate to promote trade liberalization with the aim of increasing intra-ASEAN trade. The realization of the AEC includes the existence of the free flow of goods, services and investments within the ASEAN region. In terms of trade in goods, the regulations within the AEC framework are intended to promote the establishment of single markets and production bases in the ASEAN region that does not only require the elimination of tariff barriers, but also non-tariff barriers. This article conclude that the NTB Regulations in the AEC 2015 are not very well implemented proven by the increase amount of NTMs imposed by ASEAN countries. It was found that several initiatives have been formulated in the AEC Blueprint 2025 in order to further eliminate non-tarrif barriers.

The Role of Trade Facilitation and Other Policy Strategies in the Successful Implementation of AfCFTA

The purpose of this research paper is to discuss the importance of trade facilitation in the successful implementation of the African Continental Free Trade Area (AfCFTA). The AfCFTA brings a great potential to African economies by creating a single market with the elimination of tariffs and non-tariffs barriers (‘NTBs’); providing a push for the development of industrial capacities; encouraging the emergence of continental value chains; contributing to promoting intra-African trade; creating jobs; and ensuring economic transformation and prosperity in Africa. However, this potential requires a trade environment featured with simplified and harmonized trade border procedures for the smooth movement of goods among African countries. The importance of trade facilitation for the successful implementation of the AfCFTA emerges from the fact that it will work as a panacea for intra-Africa trade ills of increasing trade costs arising from NTBs; inefficient transportation; weak logistics infrastructure; cumbersome regulatory procedures; lengthy customs processes; and incoherent business documentation, thereby placing Africa at a competitively disadvantaged position. The paper concludes that trade facilitation has a crucial role in maximizing the benefits of the AfCFTA. Furthermore, it recommends that the existence of wide productive capacity and diversified manufactured products that can be exchanged regionally, continentally and internationally through a flexible trade facilitation environment, should be supported to galvanize the outcomes of the AfCFTA. AfCFTA, Trade Facilitation, Boosting Intra-African trade, Empowered Private Sector, Industrialization, Sustainable Economic Growth, TBT, SPS, NTB

The AfCFTA’s Success Depends on Effective Dispute Settlement Mechanisms for the Private Sector

The state-to-state nature of the dispute settlement mechanism (DSM) of the Agreement Establishing the African Continental Free Trade Area (AfCFTA) could serve as a barrier to ensuring dispute resolution under this regional trade agreement. African countries’ low participation in trade dispute resolution at the World Trade Organization (WTO) and within their own regional economic communities (RECs) indicates that these countries either do not have the capacity to resolve trade issues through contentious litigation or those types of dispute settlement mechanisms are not suited to their needs. However, it is important that the AfCFTA ecosystem provides effective and efficient dispute settlement options for the commercial operators that will seek to take advantage of the benefits of the trade agreement. The AfCFTA non-tariff barrier (NTB) Online Monitoring Mechanism is a welcomed addition to the options available to the private sector. However, AfCFTA State Parties must resolve the complaints lodged on that platform swiftly and adequately. In the absence of continental or regional dispute resolution options, it is foreseen that domestic courts will play a large role in adjudicating AfCFTA-related disputes. Therefore, the options that State Parties could avail to private parties include establishing or capacitating commercial courts and arbitration centres to effectively adjudicate AfCFTA-related disputes. Africa, AfCFTA, dispute settlement, DSU, state-to-state, private sector, direct access, domestic courts, arbitration

Implementation of the WCO Time Release Study to Mitigate Non-tariff Barriers in AfCFTA: Lessons to Be Learned by Africa

The African Continental Free Trade Area (AfCFTA) entered into force on 1 January 2021. Its ‘trade in goods’ pillar focuses on a reduction ofnon-tariff barriers (NTBs) in addition to tariff reduction. The World Customs Organization (WCO) Time Release Study (TRS) is particularly relevant in addressing NTBs. The TRS is a WCO tool designed to measure the time spent for release and/or clearance of goods at borders. It has been created to help administrations identify bottlenecks in the trade flow process and to facilitate trade while ensuring compliance and revenue collection at borders. The aim of this article is to share the importance and benefits of applying the WCO TRS methodology to identify and address NTBs that are hampering international trade. Implementation of the TRS will support AfCFTA countries in alleviating NTBs. In this document the authors provide an overview of the current situation relating to the TRS based on WCO survey results, together with anecdotal national and regional examples within Africa and externally. The article then shows lessons that could be learned by African countries, particularly in the context of the AfCFTA. TRS, non-tariff, Africa, barriers, AfCFTA, lesson and regional

ANÁLISE DA TENDÊNCIA E CRESCIMENTO DAS EXPORTAÇÕES CHINESA E SEUS IMPACTOS NO COMPLEXO SOJA SUL AMERICANO: 1990 A 2020

The study proposes an analysis of the trends and export profiles of products from the soy complex in Argentina, Brazil, Paraguay and China in the period from 1990 to 2020. The econometric model of trend and log-linear growth rate was used as a methodology. Among the results, it was found that china has resized its international trade in the soy complex. Through industrial policy, it constituted a competition and a large industrial park. Based on trade policy, it strengthened the industry, through tariff and non-tariff barriers. On the other hand, in the South American continent, it was observed that as a promotion policy in China, it stimulates the growth of soy production in Brazil. In contrast, Argentina and Paraguay's policy was effective in maintaining and expanding activities related to soy processing.

A Study on the Effects That SMEs’ Response to Non-Tariff Barriers Exerts on Export Performance: Focusing on Technical Barriers to Trade

Purpose – This study analyzes the effects that the response to the technical barriers to trade (TBT), which are used by various countries as means to restrict imports, exerts on exports at a time when protectionism is emerging in the face of a global economic downturn. TBT has been widely used in developed countries for the safety and protection of their people. Recently, the use of TBT as a tool of protectionism has increased considerably in developing countries as well. Therefore, this study analyzes the South Korean SMEs’ response and export performance. Design/methodology – To analyze SMEs’ response to TBT and their export performance, this study conducted empirical analysis through statistical analysis. To this end, the research established a theory based on previous research and designed its hypothesis and research model. To verify the hypothesis and research model, factor analysis addressing validity and reliability was performed using SPSS 25 and AMOS 26, and the structural equation model was analyzed. Findings – This study found the causal relationship between the independent variable, the mediating variable, and the dependent variable adopted against the theoretical background to have little or no effect, in contrast with previous studies. In a break from previous studies, all hypotheses were rejected for innovation strategic competencies, one of the sub-factors of the independent variable, which is believed to be a result of the lack of practical research related to TBT. Originality/value – Previous studies performed analysis using trade statistics or macro data. A number of such studies analyzed the relationship between technical regulation and trade volume. This study differs from previous studies in some respects, because it analyzed the export performance of companies by establishing a hypothesis and implementing a research model with the factors analyzed in previous studies. In addition, a new attempt has been made by classifying the TBT response factors into technology competencies, human resource competencies, and innovation strategic competencies, and utilizing technology innovation and the export support system as mediating effects.

ELIMINATION OF NON-TARIFF BARRIERS IN REGIONAL TRADE INTEGRATIONS: THE CEFTA 2006 EXPERIENCE

For all the economies in the global world the question of trade is becoming more important by the day. But the possibility to export on the global market meets many impediments in the form of non-tariff barriers, rather than tariff these days. CEFTA 2006 regional trade integration is not an exception with more than 100 NTBs introduced during its existence. Our research found that Serbia and Albania are CEFTA 2006 signatories with the most NTBs introduced in the observed period. CEFTA has a very efficient institutional mechanism, Subcommittee on Technical Barriers to Trade (TBT) and Non-Tariff Barriers (NTBs), for the removal of NTBs between signatories. We have researched three case studies of bilateral NTBs in Serbia’s intra-CEFTA 2006 which demonstrate that our trade partner uses policy oriented NTBs. The removal of NTBs at the global, as well as regional levels is crucial for the development of trade flows after the world economic crisis.

System of trade barriers Japanese market for fishery products - Measures response of Vietnam

Vietnam and Japan are participating in three free trade agreements: the ASEAN - Japan Comprehensive Economic Partnership Agreement (AJCEP), the Vietnam - Japan Economic Partnership Agreement (VJEPA), and the Comprehensive and Progressive Agreement for Trans - Pacific Partnership (CPTPP). This is also an opportunity for Vietnamese seafood exporters to take advantage of boosting exports to the Japanese market when exported seafood products of Vietnam enjoys a 0% tax rate. However, in order to enjoy these incentives, Vietnam’s seafood industry has to face challenges to overcome non-tariff barriers (NTBs) of Japan, such as standards on residues of veterinary drugs, drugs plant protection, antibiotics, infection levels, and packaging label. This article analyses the current situation of some technical barriers in seafood trade in general and Vietnamese seafood in particular when accessing this market. On that basis, some solutions are proposed for Vietnamese seafood to overcome through trade barriers imposed by Japan

The Extensive Margin of Exporting Products: A Firm-Level Analysis

To quantify trade frictions, we examine multiproduct exporters. We build a flexible general-equilibrium model and estimate market entry costs using Brazilian firm-product-destination data under rich demand and market access cost shocks. Our estimates show that additional products farther from a firm’s core competency come at higher production costs, but there are substantive economies of scope in market access costs. Market access costs differ across destinations, falling more rapidly in scope at nearby regions and at destinations with fewer nontariff barriers. We evaluate a counterfactual scenario that harmonizes market access costs across destinations and find global welfare gains similar to eliminating all current tariffs. (JEL D22, F12, F13, F14, O14, O19)

THE ROLE OF TRADE BARRIERS IN INTERNATIONAL TRADE IN METALLURGICAL INDUSTRY OF UKRAINE

The purpose of the paper is to analyze and present the role of the metallurgical industry for the economy of Ukraine and evaluate the impact of trade restrictions on the international activity of the metallurgical industry of Ukraine. As a result, this study evaluated the risks of international activities of metallurgical enterprises of Ukraine with key partner countries. Methodology. Assessment of the role of the metallurgical industry for the Ukrainian economy and the extent of the impact of trade barriers on international activities is based on several statistical data and a few methods and rules for their analysis. Their use will allow managers of metallurgical companies to form a strategy for the development of the enterprise in international markets and quickly respond to changes in the external market situation. These methods include statistical analysis, strategic segmentation, deductive and inductive methods, data comparison method, forecasting and risk assessment. Results. Per capita steel consumption growth rates have shown positive dynamics since 2010. Volatility levels of per capita steel consumption of the population is significantly lower than the growth of world GDP. Against the backdrop of slowing global GDP growth rate of steel consumption continues to grow. According to the level of consumption of steel per capita, the author singled out three stages in the development of countries. The share of exports of products of the metallurgical industry of Ukraine in 2020 amounted to 18.3% in monetary terms. This indicator is the second after the volume of exports of agricultural products. Among the total export of steel products in Ukraine 95% are engaged in export of ferrous metals, which is a raw product. The trade balance of Ukraine in the trade of metallurgical products has been decreasing since 2018 amid a decrease in export volumes and has not yet reached the level of 2016. According to the World Trade Organization, at the end of 2020, there were 3,208 non-tariff trade barriers in the world regarding trade in metals and metal products. In terms of the number of anti-dumping measures, the market of metals and metal products ranks first – 843 measures out of 2160 measures for all product groups. This tool is used by countries to protect the domestic market and as a tool in international competition. As a result of a matrix analysis of the rates and volumes of growth of Ukraine's metallurgical products in the context of partner countries and the number of introduced trade barriers, the countries with the highest risk in international activities and the most promising sales markets were identified. The Russian Federation and the United States are identified as the countries with the highest risk of the impact of trade barriers on international activities for Ukrainian metallurgical companies. The most promising sales markets are Saudi Arabia and Italy. Practical implications. With the help of the results of this paper, managers of metallurgical enterprises in Ukraine can form and adjust the strategic directions for the development of companies in the frame-work of international activities.

The Estimated Effects of Positive List System for Pesticides Maximum Residue Limits on Agricultural Import in Korea

This study investigates the impact of positive list system (PLS) adoption on agricultural imports of nuts and tropical fruits in Korea. The government recently adopts the positive list system on pesticides maximum residue limits to improve food safety regulation. Korean farmers concern that the PLS adoption might decline their incomes due to increased production costs. However, the adoption of the PLS may increase prices of agricultural products because of the reduced total supply that is driven by the non-tariff barrier role of the PLS. Utilizing the Heckman’s two-step approach to estimate the gravity model with import data of nuts and tropical fruits, we find that the PLS adoption has a negative effect on imports as well as a probability of imports. These results provide implications to farmers and policy makers. The PLS adoption might improve the income of farmers from a rise of agricultural products’ prices. Considering the PLS adoption implies an improvement of food safety regulation, policy makers can use the PLS adoption as an advantage on promoting exports.

A Review of Key Sustainability Issues in Malaysian Palm Oil Industry

The palm oil industry has contributed enormously to the economic growth of developing countries in the tropics, including Malaysia. Despite the industry being a development tool for emerging economies, the oil palm crop is inundated with allegations of its unsustainable plantation practices and viewed as environmentally detrimental and socially adverse. These negative perceptions are amplified through anti-palm oil campaigns and protectionist trade regulations in developed countries, particularly in the European Union (EU). This situation, if further exacerbated, could potentially affect the export of palm oil and the industry as a whole. As such, this article provides a critical review of the key sustainability issues faced by the Malaysian palm oil industry as the second biggest exporter of palm oil to the global market. The various insights and the interpretations of sustainability are contested according to the contexts and the interests of the countries involved. Hence, palm oil is constantly exposed to bias masked by non-tariff barriers from consumer countries to protect their domestically produced vegetable oils. This could constrain the commodity competitiveness in the international market. As issues on palm oil sustainability continue to evolve, policymakers at key stakeholder agencies need to devise strategies to manage global disruption in the palm oil trade.

Methodological approaches to determining the impact of barriers on international trade

Today, within the framework of the functioning of foreign trade policy, there are two main opposing models: protectionism and free trade. Recently, the situation is developing towards the dominance of the policy of protectionism over the policy of conducting free trade, since there is a continuous increase in the number of non-tariff measures and the manifestation of trade wars. This situation leads to the need for a policy of trade liberalization. Implementing a foreign trade policy aimed at eliminating trade barriers is not a quick process and requires a thoughtful scientific assessment. To analyze the criticality of the situation of the absence of a free trade policy and to reflect its validity, a very wide methodological toolkit is used to study various kinds of trade barriers, ranging from the calculation of the simplest indicators to the construction of complex econometric models. This study provides a comprehensive review of the main methodological approaches to determining the impact of tariff and non-tariff barriers on the international trade activities of countries. In the scientific review work, 4 domestic and 24 foreign sources, formed on the basis of 21 resources, were involved in the search for literature. The results of the review analysis of research papers showed that in the study of tariff and non-tariff barriers, researchers mainly use three econometric models, namely gravity model, partial equilibrium model and general equilibrium model. In addition, the study of non-tariff barriers can be carried out in the context of two other methods besides the econometric one: the implementation of the "price gap" method and the derivation of "incidence indicators".

Eliminating ‘Thick’ Borders: Analysing the Legal Framework on Non-Tariff Barriers in the Africa Continental Free Trade Area Agreement

African countries have long recognised that regional integration is vital if Africa is to optimise its growth potential and boost its bargaining power in the global marketplace. This explains the proliferation of several Regional Trade Agreements (RTAs) across the continent culminating in the conclusion of the landmark African Continental Free Trade Area (AfCFTA). However, despite the concerted efforts to boost intra-trade among African countries, African borders remain ‘thick’ because of the continued existence of Non-Tariff Barriers (NTBs) that reverse gains made from initiatives of trade liberalisation. Accordingly, if the landmark Africa Continental Free Trade Area (AfCFTA) is to be successful, it must strive to address and eliminate Africa’s NTBs. It is argued in this paper that while the AfCFTA makes some important strides in reducing NTBs in intra-African trade, there are still some significant gaps in the AfCFTA’s provisions on NTBs that need to be addressed. Some of these gaps include: the lack of a comprehensive legal framework that adequately addresses all the categories of NTBs and the lack of clear guidelines on how to promote harmonisation among conflicting measures among RTAs. This article singles out and analyses provisions on NTBs under the AfCFTA with the aim of determining whether the AfCFTA addresses the challenges currently facing other RTAs in tackling NTBs. The author will identify shortcomings in the legal framework of the AfCFTA with the aim of making proposals to address them.

PRODUCTION GREENING AND EXPAND OF EXPORT OPPORTUNITIES OF UKRAINE UNDER EU ASSOCIATION

Topicality. The urgency of the problem of greening and development of export opportunities of Ukrainian producers today is growing due to the need to adapt to changes in the European Green Deal, as well as the need for environmental modernization, which creates new opportunities for export and prevents the negative impact of non-tariff environmental restrictions. Ensuring environmental modernization of production are key and relevant factors for sustainable development and competitiveness of enterprises, the basis for successful international cooperation. Aim and tasks. The purpose of the article is to develop theoretical and practical proposals that should justify the principles of greening the economy and the mechanism of their practical implementation at the enterprise level in terms of association with the EU. The proposed measures of ecological modernization of enterprises can be implemented at almost any export-oriented enterprise. Research results. In terms of environmental efficiency, Ukraine ranks 60th in the world. The structure of capital investments in environmental protection by types of environmental measures and types of economic activity where ecological modernization is taking place in Ukraine is determined. The changes due to the introduction of the European Green Course, as well as the consequences for Ukrainian exporters are outlined. A number of measures have been proposed at the enterprise level that will eliminate the risk of restricting access of Ukrainian goods to the EU market due to new "climate" non-tariff barriers to trade, including: reducing the use of non-renewable energy sources, transition to more energy and resource-efficient technologies. technologies that create a smaller carbon footprint, increase attention to the environmental characteristics of goods and services, active participation in the standardization process in accordance with international standards, introduce into production practices technical regulations harmonized with EU standards, entering the EU public procurement market with "green" goods Conclusion. The basis for the development of exports by Ukrainian enterprises is further integration into the EU market, which leads to increasing dependence of Ukrainian producers on the greening of the economy of the common European market. In anticipation of the introduction of new non-tariff environmental barriers to SWAM in the framework of the association with the EU in 2023, Ukrainian exporters must already adapt to these requirements. Prospects for future research in the field of greening of export industries are related to the mechanisms of transition to environmentally friendly industries and finding adequate to the economic situation sources of funding for environmental modernization of Ukraine's economy.

Research on green trade barriers in China's foreign trade

With the development of world economic globalization, China has been deeply integrated into the global economy. At the same time, with the increasing improvement of China's world economic level, the environmental problems caused by economic development are becoming more and more serious, followed by a new type of non-tariff trade barriers, that is, the formation of green trade barriers. At this stage, the serious impact of green trade barriers on China's foreign trade has greatly restricted the development of China's foreign trade. This paper briefly introduces the rise, performance and causes of green trade barriers, mainly introduces the impact of green trade barriers on China's foreign trade, and expounds the countermeasures to actively deal with green trade barriers.