Tariff Barriers Research Articles

The ASEAN Economic Community (AEC): Myths and Realities

ASEAN is considered one of the most successful economic regions, because it managed to dismantle many of the tariff barriers among the ten member states. Its more ambitious goal, however—of becoming not only a single trade area, but also a single production base by the year 2015—appears elusive. The investment liberalization goals stipulated in the ASEAN Economic Community Blueprint, a roadmap for regional economic integration, is meek, indicating unwillingness of member states to open up their cosseted and, at times, lucrative, service sectors. Moreover, current commitments of member states do not even match up with such goals. To be able to establish a regional production base, member states will have to stand up against local interest groups that benefit from the status quo, be they large domestic state and private companies operating in key service sectors such as telecommunications, energy and finance, or professional councils or professional associations that would like to reserve jobs exclusively for their members. If not, the region will certainly gradually but surely lose its economic flair.

The Industrial Development Authority, 1949–58: establishment, evolution and expansion of influence

Abstract Established in 1949 in the face of Fianna Fáil hostility, and greeted with suspicion by both the department of Industry and Commerce and the department of Finance, the Industrial Development Authority within ten years had carved out a powerful position for itself within the bureaucracy. By the early 1950s, while Seán Lemass was still wedded to the concept of import-substituting industrialisation, the I.D.A. was formulating its vision for ‘industrialisation by invitation’ and lobbying internally for the introduction of export profits tax relief. The adoption of this measure in 1956 initiated the low corporation-tax regime that remains in place to this day. Though frequently conflated, the reorientation of industrial policy in the 1950s and the dismantling of tariff barriers in the 1960s were quite separate initiatives. That the establishment of the I.D.A. and the adoption of export profits tax relief were opposed by the department of Finance and enacted by inter-party governments clearly distinguishes them from the later trade-liberalisation initiative associated with the partnership of T. K. Whitaker and Lemass. The present paper explores the circumstances surrounding the establishment of the I.D.A. and traces its evolution and expanding influence over the first ten years of its existence.

The Impacts of the Marine Transportation Openness Policies against the Transportation Costs

Transportation costs are the driving factors of the world trade growth, lower transportation costs can increase thecompetitiveness of a commodity. With the openness of the transportation services sector, transportation costsdue to the removal of tariff and non-tariff barriers will be lower. Some of the commodities exported andimported by Indonesia are farm commodities thus how the policies influence their transportation cost needs to beknown. Analysis was performed using the 2010 cross section data of 15 countries. The analysis result indicatedthat the transport services sector openess did influence the transport costs of imports yet it didn’t significantlyinfluence the export transport costs.

Free Trade Agreement between Tunisia and the European Union, Do Institutions Matter?: An Empirical Validation by A Gravity Model

Tunisia has signed a free trade agreement with the European Union in 1996, which provides for the reduction of tariff barriers between Tunisia and the EU. In this article, we aim to know and test whether the similarity of the institutional framework has to stimulate international trade between Tunisia and the European Union. In this context, we built a variable called “Institutional distance” to valid the institutional dimension of international trade, near borders effects reported in the literature. To this end, a gravity model was used initially (Tunisia and 21 European countries). Secondly, the estimate shows the existence of spatial autocorrelation. The latter has been corrected using spatial econometrics. The results show that the geographical distance remains more important than the institutions in this type of agreement between north and south shores of the Mediterranean.

WTO Discussions on Technical Barriers to Trade and Implications for Asia-Pacific Regional Economic Integration

As tariff barriers, of traditional and typical policy instruments in international trade, have been reduced significantly under preferential trade agreements as well as the multilateral trading system, non-tariff measures (NTMs), especially those of technical barriers to trade (TBT), become more and more important as means to control international trade. This study is to analyze and better understand TBT or more accurately, technical measures. Based on the analysis, it will attempt to identify some implications and ways to reduce TBT or to facilitate international trade, and ultimately contribute to enhancing economic integration in the Asia-Pacific region.The characteristics and trends of technical measures can be best identified and evaluated by the notifications of WTO members according to the Agreement on Technical Barriers to Trade (TBT Agreement), discussions in the WTO TBT Committee - especially specific trade concerns (STCs), and dispute settlement cases in TBT related issues. In fact, the number of TBT notifications have surged as various and comprehensive legitimate objectives of technical regulations were allowed and on other backgrounds since the launch of the WTO in 1995. It is noted, however, that TBT notifications are not regarded as TBT itself but as “potential” TBTs in this study. To analyze the trends and characteristics of TBT measures, this study utilizes the information in the WTO TBT notifications, STCs, and dispute settlement cases related to the TBT Agreement. Focus will be on the APEC member economies. Some trends and characteristics of TBT measures by the objective of regulation, by commodity, and by the country notified (e.g., developed and developing economies) will be analyzed and identified. Some of implications from the results are as follows. Due to the fact that technical measures are mostly domestic regulations but controlled at the border to restrict market access, there needs to be consultation, cooperation and harmonization of regulation rather than competition and retaliation. There also needs to be developed a system for information and experience exchange, capacity building including on development and implementation of standards, technical regulation, and conformity assessment procedures, especially for developing economies. APEC is well positioned to lead international cooperation in TBT with its diverse members and related specific institutions.

Export of Fruits from India: Growth, Pattern and SPS Issues

The total export of agricultural products from India has touched $45 billion during 2013–14 from about $18 billion during 2009–10. In present context non tariff barriers are playing greater role as compared to tariff in the international trade. This study was conducted to analyze the growth of major fruit (Mango, Grapes, Banana) export, changes in the direction of export and various SPS issues related to export of fruits. Mangoes export has showed significant growth rate of 6.5 per cent per annum in terms of quantity. Export value showed significant growth rate of 8.75 per cent per annum while export price showed significant growth rate of 2.25 per cent per annum. Bananas export has also shown significant positive growth rate of 21.91 per cent per annum. At the same time export value and export price showed significant growth of 25.8 per cent per annum and 3.89 per cent per annum respectively. Growth rate in export quantity, value and price of Grapes was found 12.7, 16.77 and 4.08 per cent respectively during 1990–91 to 2011–12. UAE was found more stable market in case of Grapes and in case of mangoes; Saudi Arabia and Bangladesh were more stable market. Bahrain, Iran and UAE were stable market for banana, therefore it was suggested that the attention should be focused on the market requirement and specifications of those stable markets.

Free-trade agreements: challenges for global health.

In this study new free-trade agreements are discussed, which are based on the breaking down of tariff and technical barriers and normally exclude most of the poorest countries in the world. Considering the current context of economic globalization and its health impacts, seven controversial points of these treaties and their possible implications for global public health are presented, mainly regarding health equity and other health determinants. Finally, this research proposes a greater social and health professionals participation in the formulation and discussion of these treaties, and a deeper insertion of Brazil in this important international agenda.

Preferencyjne porozumienia handlowe – znaczenie dla handlu dobrami i innych dziedzin współpracy Unii Europejskiej z partnerami zagranicznymi

The EU’s trade in goods with the majority of its partners is regulated by preferential agreements, of a unilateral or mutual character, under PTAs. Today, the role of PTAs in eliminating tariff barriers is not important for the EU, mainly because, first, EU imports include many goods for which the MFN duty rate is 0%, and, second, the preferential margin (the difference between 0% preferential duty and MFN duty above 0%) is low in the EU. Also, all mutually preferential agreements, be they free trade agreements or customs unions, provide for some exceptions. The exceptions cover specific agricultural products the EU considers to be sensitive. Apart from the improved tariff access the EU gains to partners’ markets, a far more important objective for the EU in negotiating PTAs, is that there is a willingness to eliminate barriers of regulatory character, which have recently been the most important impediments for EU exporters. PTAs go beyond the existing WTO multilateral arrangements and are used by the EU to achieve foreign policy objectives, such as political and economic stabilisation in its vicinity and strengthening the role of the EU in the world. The EU has recently negotiated mutually preferential agreements with a number of neighbouring countries, under the European Neighbourhood Policy. It has also been negotiating agreements with key developed countries, including Canada, Japan, and the US. It has done so to deepen its ties with those partners’ producers and investors, and also to address the low efficiency of WTO multilateral rules which do not properly apply to particular aspects of concrete relations.

Eurasian Economic Union and the Difficulties of Integration: The Case of South Ossetia and Abkhazia

And here comes in the question whether it is better to be loved rather than feared, or feared rather than loved. Niccolo Machiavelli, The PrinceIntroductionThe Ukrainian crisis of 2013, followed by the annexation of Crimea, has redistributed the balance of power among the political players of the world arena. Moreover, since Putin's return to the presidency in 2012, the concept of a shared neighborhood between the Russian Federation and the European Union (EU) becomes a strategic challenge not only for both but foremost for those post-Soviet republics struggling between two strategic decisions: to accept Russian protection or to choose Western development.1The aim of this paper is to shed light on the forthcoming 2015 Eurasian Economic Union's (EEU) economic and political perspectives, on South Ossetia and Abkhazia's economic attractiveness, the sentiment inside those breakaway regions of Georgia and the Russian Federation standpoint in resolving or maintaining the situation in the disputed territories.Originating in 2009, the Eurasian Customs Union or Customs Union of Belarus, Kazakhstan, and Russia (CU) came into existence on 1 January 2010 as an attempt to establish a defensible economic integration model. However, the EEU was also enthused by the creation of the Eastern Partnership (EaP), an initiative of the European Union to establish closer ties with the six post-Soviet countries in Eastern Europe and the South Caucasus (Armenia, Azerbaijan, Belarus, Georgia, Moldova, and Ukraine), designed to promote regional stability between the EU and its Eastern neighbors trough trade and economic agreements, and democratic institutions building.2 Aimed at supporting these countries in overcoming economic and political challenges, the EaP was perceived by the Russian government as a platform for the European Union's (EU) enlargement, close to Russia's borders and its strategic near abroad, thereby threatening Russia's national, geopolitical and security interests.Since 1990, Russia has openly resisted any North Atlantic Treaty Organization (NATO) expansion towards its periphery3 and reemphasized this rhetoric several times: in 2004 when Georgia declared its intention of Euro-Atlantic integration; during the war in South Ossetia in 2008 by sending a strong message to Ukraine that its insistence on NATO membership may lead to war and/or its dismemberment4; and, most recently, when Ukraine's fomented domestic crisis over the European Trade Association Agreement resulted in Putin's annexation of the Crimean peninsula as a means of securing Russia's strategic naval base in Sevastopol.5Ukraine's importance to Russia has always been considered critical, even before the dissolution of the Soviet Union in 1991. Therefore Ukraine's choice to take a European path has meaningfully reshaped Putin's concept of the EEU integration.6At the very beginning, the EEU was regarded as an economic foundation for prosperous shared dividends, a project of broader reintegration within the former Soviet area to cement Russia's influence within the near abroad and as a direct response to the EaP activities. Today, however, we face a new geopolitical reality in which Russia may amend the EEU with political and military agreements in order to tip the balance of power in the region in its favor and secure its borders. Nonetheless, this scenario is a critical topic when hypothesizing about Russia's possible reaction towards a rapidly changing foreign context.Eurasian Economic Union: Perspectives and DrawbacksOn 1 January 2015 the EEU, an economic bloc comprised of Armenia, Belarus, Kazakhstan and Russia, was launched. Founded on the basis of the CU, the EEU will continue the policy of reducing tariff barriers, establishing free trade zones in all economic sectors among member states, facilitating trade and allowing the free movement of goods and services. In addition, all members must adopt common external and internal economic and trade policies, free movement of citizens and capital and possibly a common currency. …

THE INSTITUTIONAL BARRIERS’ IMPACT ON THE ECONOMIC GROWTH IN THE INTERNATIONAL ECONOMIC INTEGRATION

The purpose of the paper. In our study we try to assess the causality link between a number of the international economic integration politico-economic factors, institutions and basic production factors with the growth of the economy. We form a sample of 18 post-socialist countries, including Central and Eastern Europe (CEE) countries-members the European Union, and the rest of CEE non-members countries and CIS countries, who have not acquired the membership in the EU, including Ukraine. The time period of our study is 23 years, starting from 1991 – the year of independence of Ukraine till 2013 – the last year for which statistics are published for our group of a corresponding list of indicators that make up our interest. In the estimating equation we use econometric analysis panel data by least squares method with fixed effects transformation to eliminate countries’ heterogeneity. In the study we use such determinant of the institutions quality as the Index of Economic Freedom (Heritage Foundation), and we investigate various components of the Index of Economic Freedom (freedom of ownership, freedom of trade, freedom from corruption, freedom of investment). We assume that institutions towards freedom of foreign trade and reducing corruption will have a greater effect on the economy of the investigated countries. It is advisable to attach to the international economic integration politico-economic factors the indicator of foreign trade taxation as a measure of tariff barriers, international aid programs of the foreign donors and the European institutions to assess their role for the economic growth of the countries surveyed, and we take into account the capital and the labor as the basic factors of production. Methodology. The methods of synthesis, logic, abstraction and analysis are used in the study. On a sample of 18 post-socialist countries (CEE and CIS) for the period of 23 years (1991-2013) we had conducted the econometric panel analysis by the method of least squares with fixed effects transformation method, in order to avoid the heterogeneity across countries. The statistics of World Bank, IMF, OECD is used in the study. Results of the survey showed that the specifications test results confirm the positive role of the international aid programs to support the growth of GDP, in addition, we can assume the existence of positive effects simultaneously improving institutions and the positive effect of the external trade determinants. Practical implications. This study makes it possible to confirm that in terms of economic policies, countries that are in the integrating process should focus their efforts on improving the institutions in the trade area. Value/originality. The results of both models provide a better understanding of the impact of political, economic and institutional factors on the economic integration process of Central Eastern Europe countries and Commonwealth of Independent States. Further research in this area will help to reveal the problem in more details.

The Effects of Trade and Investment Liberalization on Korea's FDI

While most of RTA talks have incorporated rules on industrial tariff and non-tariff barriers, services, and trade remedies in the past, countries now seek to co-operate on other areas of policymaking, such as rules on investment. This article provides detailed analysis on the effects of trade and investment liberalization on Korea's inward and outward foreign direct investment (FDI) by collecting all relevant information on substantive investment provisions contained in all Korea FTAs in force as May 2013 and constructing indices of the extensiveness of investment provisions.

How thick is the border: the relative cost of Canadian domestic and cross-border truck-borne trade, 2004–2009

Despite the elimination of tariff barriers between Canada and the United States, the volume of trade between the two countries is less than would be expected in the absence of impediments. While considerable work has been done to gauge the degree of integration between the Canadian and U.S. economies through trade, relatively little analysis has parsed out the underlying costs of the border. The costs of crossing the border can be divided into formal tariff barriers, non-tariff barriers, and the cost of the transport system. This paper focuses on the latter by estimating the cost of shipping goods by truck between Canada and the U.S. during the 2004–2009 period. The incremental cost of import and export over domestic shipments is measured in both absolute and ad valorem terms. The latter provides an estimate of the border increment in transportation cost as a tariff equivalent. The incremental cost is further broken down into fixed and variable (line-haul) components. Higher fixed costs are consistent with border delays and border compliance costs being passed on to the consumers of trucking services. Higher line-haul costs may result from difficulties obtaining backhauls for a portion of the trip home, which may stem from trade imbalances and regulations that restrict the ability of Canadian-based carriers to transport goods between two points in the U.S.

DAMPAK KEBIJAKAN TARIF IMPOR TERHADAP PASAR JAGUNG DI INDONESIA

Maize is the second largest contributor to GDP after rice in the food crops subsector in Indonesia. The domestic maize production is unable to meet the high demand. Therefore, there is a gap or imbalance between supply and demand and maize import cannot be avoided. The implementation of ASEAN Free Trade Area has reduced and eliminated tariff barriers. The objectives of the study are to: (1) identify factors that affect the supply and demand for maize, and (2) analyze the impact of changes in maize import tariff on the supply, demand, and welfare of producers and consumers of maize in Indonesia. The study used time series data from 1986-2010. Indonesian Maize Trade model is constructed as a system of simultaneous equations and estimated method using Two Stage Least Squares (2SLS).The elimination of Indonesian maize import tariff from AFTA or non AFTA countries is leading to decreased producer surplus. Therefore, the combination of eliminating Indonesian maize import tariff from AFTA and non AFTA countries, decreasing the retail price of urea fertilizer, and increasing maize prices at the farm level can compensate the decrease of producer surplus so that the welfare can be increased(net surplus).

The Prospects of ECOWAS Trade Liberalisation in Nigeria

This paper, The Prospects of ECOWAS Trade Liberalisation in Nigeria examines Nigeria’s participation in the ECOWAS Trade Liberalisation Scheme and the potential gains that may accrue the country opening up to trade in the West African sub-region. The ECOWAS Free Trade Area is to give rise to the elimination of custom duties and accompanied by the total elimination of all non – tariff barriers and other administrative measures impeding the free flow of trade in the sub – region. Employing a deductive approach the paper posit that Nigeria stand a chance of benefiting through such gains as improved wages and employment, increased productivity in the manufacturing industry and enhanced technological progress and economic growth. With Nigeria remaining committed to the implementation of the Common External Tariff, she heads toward jointly taking advantage of the opportunities of trade liberalization.Key words: Trade Liberalisation, Economic Integration, Common External Tariff, Openness to trade, Intra-Regional Trade.

If the British left: Agricultural policy outside the CAP?

SummaryIf the Conservative party wins Britain's General Election in 2015 the incoming Government intends to negotiate a new settlement with the EU, and then hold an in–out referendum. Opinion polls suggest a narrow majority would vote to leave. To exercise an informed choice the electorate would need to know what feasible alternatives are available, so that these can be assessed and debated. Furthermore, in the event of a No vote the Government must be ready to implement its alternative strategy: Plan B. This implies that both a new EU settlement, and Plan B, need to be negotiated concurrently. There has been no serious attempt to explain what Plan B would mean for UK farm policy. Would, for example, British farmers continue to receive the level of support that they currently enjoy; would support be more focussed on environmental objectives? WTO rules on most‐favoured‐nation treatment and regional trade agreements would apply. Could a WTO compatible agri‐food trade agreement be negotiated with its former EU partners, or would Irish and Brazilian beef face the same tariff barriers on imports into the British market? For the EU, the loss of a major net contributor to EU finances could result in a re‐examination of the CAP budget.

Evaluation of the Role of Single Window in Facilitating the Process of Goods Import in Customs of Qazvin Province

This study evaluates the impact of single window in facilitating the process of goods import in customs. Since in recent years, international organizations, consistently have emphasized reducing tariff barriers and trade facilitation (including tariff and non-tariff) and given that the establishment of a single window is effective solution to facilitate business interactions and an important step in the development of e-commerce, this hypothesis was formed that applying of single window will facilitate clearance process in customs of Qazvin province (Iran). To examine this relationship were used CEFACT organization model to assess the benefits of implementing a single window. In this study, single window elements including hardware, software, database, network, documentation, and human resource. Dimensions of dependent variable means facilitates of the import process derived from research of CEFACT organization. The research method used is descriptive that was carried out as survey. According to this study have two populations (Commissioners and Customs staff). Therefore, a separate questionnaire was designed for each statistical population. Sampling method and sample size has been done by Morgan table. According to surveys conducted, single window taken into consideration an important factor in facilitating clearance process in Qazvin.

Trans-Pacific Tariff Barriers: a Case Study of Five Asia—Pacific Developing Countries and Canada

Though the Trans Pacific Partnership (TPP) is believed to greatly benefit the developing countries of the Asia—Pacific (AP) region, most of the countries, such as China, are still hesitant to join. The major concern for these countries is whether or not the gains from the free trade provisions of the TPP will provide enough of an advantage given that most of them have already joined the WTO. In this paper, I first apply Feenstra’s (1995) TRI to gauge the actual Canadian tariff barriers facing five Asia—Pacific developing countries: China, Thailand, Malaysia, the Philippines, and Indonesia. The calculation of TRIs enables us to estimate the gains (from retrieving deadweight loss due to tariff distortion) to Canada if it completely removes its tariff barriers from the 2010 level against the five exporting countries. The gains for Canada would reach USD 276.45 million solely from China’s exports, and another USD 33.96 million total from the four other countries. Then, based on the gravity model, I estimate the impact of tariff reduction on imports and the gains, in terms of possible export growth, to the five developing countries. I find China’s exports to Canada may increase by 60.58%. Export growth then would be 68.21% for Indonesia, 39.77% for Malaysia, 69.64% for the Philippines, and 42.62% for Thailand.

Measuring China’s trade liberalization: A generalized measure of trade restrictiveness index

Neither simple average nor import-weighted average tariff indexes are ideal measures of tariff barriers. In this paper, we propose a generalized trade restrictiveness index (GTRI) that extends Feenstra’s (1995) tariff restrictiveness index (TRI) by relaxing the crucial assumption of a small open economy. We show that the GTRI can be measured using import tariffs, import shares, and the corresponding import and foreign export elasticities. We then apply the GTRI to examine how trade restrictiveness has evolved in China from 1997 to 2008, the period in which China entered the WTO. The GTRI indicates a higher level of protection than simple and import-weighted averages, but lower than the TRI. We further show a negative correlation between tariffs and product export supply elasticity, indicating that strategic trade policy was being pursued prior to China’s WTO accession. Finally, we calculate the welfare loss and terms-of-trade gain due to tariff protection. The overall tariff pass-through increases from around 28% to almost 47% because of the WTO.

EXPORTACIONES Y DESARROLLO DE LA PEQUEÑA EMPRESA NACIONAL

Ante las dificultades que muchas veces presenta el mercado peruano, dado su limitado tamaño para el desarrollo de la emergente pequeña empresa industrial, esta podría aprovechar las posibilidades que brinda el mercado ampliado de la Comunidad Andina –mayormente sin trabas arancelarias- para las empresas peruanas, planificando sus estrategias de desarrollo empresarial(1) incursionando en los mercados vecinos, donde la similitud con los consumidores locales y la cercanía física, facilitaría conseguir resultados comerciales favorables. En esta perspectiva, se analiza el impacto que pueden tener las exportaciones en su crecimiento de ventas, y como nuevo proveedor internacional, el desarrollo imprescindible de ventajas competitivas que le permitan ingresar a un primer mercado extranjero; asimismo, se revisan los cambios administrativos, productivos etc. congruentes con la nueva condición de empresa exportadora, y como estos repotenciarán la nueva organización. Del trabajo, centrado en la pequeña empresa, se vierten conclusiones sobre las posibilidades que se le presentan a estas unidades con la exportación, a fin de aprovechar su potencial para buscar el desarrollo contando con un extendido mercado internacional. 1 Larousse 1995, Diccionario (vincula el término desarrollo a la mejora y al crecimiento), página 202

Selecting alternative export markets for Namibia's red meat products: Application of a decision support model

ABSTRACTThe Namibian red meat industry is the backbone of the local agricultural sector, contributing almost 75% to total agricultural output. Through its export activities, the red meat industry is also an important generator of foreign exchange. However, Namibia exports its red meat to only a few trading partners, including South Africa (46%) and the European Union (EU) (29%). This is raising concerns because Namibia could lose its preferential (i.e. duty- and quota-free) market access into the EU with the expiry of the Interim Economic Partnership Agreement (IEPA) in 2014, while over-reliance on only a few markets increases the export sector's vulnerability to external shocks. Namibia therefore needs to diversify its markets for red meat. The purpose of this paper is to identify new export markets as realistic alternatives to the traditional main markets of South Africa, the EU and Norway. A Decision Support Model (DSM) was applied as the market selection tool in this study. The DSM consists of four filters that systematically analyse export opportunities against factors such as macroeconomic risk, market size, market concentration, shipping costs and tariff barriers. Two hundred and thirty-one countries and 28 red meat products were put through this filtering process. The analysis revealed that the most promising alternative export markets for Namibian red meat include Hong Kong, Switzerland, Qatar, Bahrain, Singapore, Malaysia and China. The DSM results constitute an important foundation for more in-depth research into demand patterns, as well as other possible deterrents, in the identified markets.