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• South Asia is geographically connected, but highly dis-integrated, with more than 90 % outward-oriented trade. • The cumbersome procedures, ruthless application of Non-Tariff Measures (NTM's), and restrictions are the biggest challenges for trade in this region. • Against this backdrop, this research measures the economic impact of Mutual recognition of Standards in South Asia. • Simulation results suggest that if standards are mutually recognized then all countries will be better off, and intra-regional trade and welfare are forecasted to increase. • SAFTA should proceed to establish such a mechanism that enables member countries to recognize the certificates and tests approved by the exporting countries. SAFTA (South Asian Free Trade Area) is not a success story. Geographically connected, but highly dis-integrated, with more than 90 % outward-oriented trade, this is the case of South Asia. Of course, military, and political tensions are the major obstacles. However, recent data and studies show that cumbersome procedures, ruthless application of NTMs (Non-Tariff Measures) and restrictions are the biggest challenges for trade in the region. NTMs are important for public health and the environment but if such standards are mutually recognized through bilateral or multilateral agreements then the hectic and lengthy procedures can be avoided. This is the basic hypothesis investigated and checked in this research. Taking four economies, (Bangladesh, India, Pakistan, and SriLanka) two-step process is adopted; firstly, AVEs (Ad Valorem Equivalents) of NTMs are calculated and then incorporated in an extended GTAP (Global Trade Analysis Project) based CGE model. Simulation results suggest that if standards are mutually recognized then all countries will be better off, intra-regional trade and welfare will increase. The study recommends that SAFTA should proceed to establish such a mechanism that enables member countries to recognize the certificates and tests approved by the exporting countries. Further, Port restrictions and the issue of para-tariffs should be discussed in future negotiations. [ABSTRACT FROM AUTHOR]

Regulatory non-tariff measures (NTMs), such as technical barriers to trade (TBTs) and sanitary and phytosanitary (SPS) measures, have frequently been imposed to regulate the importing market when the market fails to address some issues of concern regarding harmful products. The mechanism through which regulatory NTMs affect the quality of imported products seems like a 'Black Box', which is fully opened and analysed in this paper. Our research is built on a monopolistic competition framework, in which firms choose both the quality and the price of their exports subject to the compliance costs of NTMs and a fixed cost of technological change or bureaucratic procedures. The quality of products at the six-digit level of the Harmonised System (HS) traded globally and bilaterally during the period 1996–2017 is then estimated. Using these estimates, the impacts of TBTs and SPS measures on trade values, volume, unit value and quality are estimated. Then, by estimating the importer-specific impact of NTMs on trade indicators for each product, the NTM Black Box is opened and analysed. [ABSTRACT FROM AUTHOR]

Due to the rise in illegal, unreported, and unregulated (IUU) fishing, the sustainable management of fishing resources is in jeopardy. The European Union (EU) is the first regional player to establish stringent guidelines to prevent, deter, and eliminate IUU fishing. The EU carding system administers the mandate for requiring a catch certificate. Using a system of yellow and red cards, countries that export fishery products to the EU are encouraged to lessen IUU fishing in their waters. The yellow card acts as a formal warning, whereas the red card results in an import ban. This study examines the impact of fishery exports to the EU under the carding system. Findings from the structural gravity models show that fishery exports from yellow- and red-carded countries to the EU fall by an average of 23% and 83%, respectively. The computed marginal effects suggest that the yellow and red cards be tariff equivalents of 5% and 43%, respectively. The IUU regulation, as a trade-restrictive technical measure, is an example of effective, legitimate efforts to combat IUU fishing and ensure sustainable fisheries worldwide. [ABSTRACT FROM AUTHOR]

Since the 1960s, non-tariff measures (NTMs) have been continuously replacing tariffs as the core element of trade negotiations. In the 21st century, they take centre stage in all EU trade agreements with industrialised and emerging economies. By matching product codes to the rich data of NTM notifications to the World Trade Organization and merging information provided by the Temporary Trade Barriers Database, we provide a valuable open data source for trade policy analysis. Using data for 148 NTM-imposing economies for the period 1995-2019, we describe the evolution of NTMs across countries and sectors, with a special focus on NTMs implemented by the EU. The analysis of our data shows the merits and shortcomings of the WTO's service in providing transparency of members' trade policies. [ABSTRACT FROM AUTHOR]

We analyze the Russian restriction on chicken imports as an example of a non-tariff barrier (NTB). Cointegration test results support the hypothesis that the NTB limited trade. We calibrate an equilibrium market model to cointegration results to assess the market impact. The tariff equivalent of the Russian chicken NTB is estimated to be 30 − 40% depending on the representation of consumer demand. Removing the NTB decreases domestic production by 4–5% and domestic price by 27%–34%, while imports increase by 326–423 thousand tons annually in 2015–2019. [ABSTRACT FROM AUTHOR]

• Matching retail food items to traded primary ingredients reveals new stylized facts about food systems and access to healthy diets. • Most food items worldwide are traded. About 48% of these food items faced tariffs that averaged around 6.7% in 2017. • Tariffs are highest for vegetables, and highest in low- and middle income countries. • Taken together, tariffs account for 0.67% ($0.02) of the $3.27 cost per day for a least-cost healthy diet in 144 countries. • Even in low-income countries, retail food prices are driven mostly by domestic value added after port of entry. Recent use of least-cost diets as a measure of global food security revealed that over 3 billion people are unable to afford sufficient nutritious food for an active and healthy life, driving demand for policy changes to improve access and affordability. This study quantifies the role of imports in consumer prices, matching retail prices in 144 countries to imports by origin of the item or its main ingredient, resulting in a total of 13,846 pairs of a retail price and its import cost in 2017. We find that 55% of retail items had some active imports supplementing domestic production, and of those around 48% have nonzero tariffs whose average effective rate is around 6.7% of the imported commodity price. Over all countries for which data are available, the share of consumer prices for least-cost healthy diets that is attributable to tariffs and non-tariff measures averages 0.67% and 2.45% globally. The highest restrictions are on nutrient-rich vegetables, fruits and animal-sourced foods. Access to bulk commodities from diverse origins is essential for food and nutrition security, providing a greater diversity of foods and food ingredients at lower and more stable prices than can be grown at any one location. On average over all food products that are imported, 83% of the retail price is domestic value added after arrival. We conclude that food imports are best understood as inputs to the domestic production and distribution of retail items, with consumer prices and growth of the food sector dependent on the cost levels, infrastructure and institutions underlying each product's entire value chain. [ABSTRACT FROM AUTHOR]

Highlights: [•] We propose aggregation indices of Non-Tariff Measures to quantify their stringency. [•] The indices measure protectionism in deviation from international Codex standards. [•] We apply the indices to pesticide Maximum Residue Limit regulations for 83 countries. [•] Australia and Taiwan have the most protectionist regulations among 83 countries. [•] Protectionist occurs by setting stringent specific MRLs and/or defaults MRLs. [ABSTRACT FROM AUTHOR]

• Divergent residue limits on pesticides between trading partners generally impedes trade. • Stricter importer residue limits reduces trade in fruits and vegetables by 8.8%, on average. • The effect of residue limits is elastic for US exports to the EU market. • Residue limits constitutes a market entry barrier for exporters. Interfering maximum residue limits (MRLs) for pesticides with agricultural trade is becoming important for food and trade policies in the early 21st century. Differing levels for pesticide residues among countries have the potential to disrupt trade significantly. We employ a non-linear and disaggregated stringency index to quantify the degree of regulatory heterogeneity levels for pesticides between trading nations for fruits and vegetables in 2013 and 2014 and investigate the trade-restricting nature of this measure using the structural gravity framework. Our findings indicate that stricter importer MRLs reduce bilateral trade to the tune of 8.8%. Looking closer at MRLs with US partners, the effect of stricter MRLs is quite elastic concerning its impact on the US - EU trade. In particular, the estimates imply that a more stringent MRL's policy decreases the US export of fruits and vegetables to the EU members by a striking 13.8%. At the disaggregated level of MRL indices over different classes of chemicals, the results indicate that there is a significant gap in regulations regarding MRLs among several major US foreign markets for fruits and vegetables, particularly in the EU and the Trans-Pacific trading partners. [ABSTRACT FROM AUTHOR]