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Adherence to international norms of food quality and safety is paramount to enhance the export of marine products from India. The exporters have focused on compliance with the non-tariff measures to widen and deepen their exports. The present study analysed the trends and compliance status of quality standards in Indian marine exports to major importers and offers policy recommendations for enhancing the safety and quality of these exports. The study emphasises the role of regulatory bodies, industry stakeholders and international partners in promoting quality compliance. [ABSTRACT FROM AUTHOR]

Higher levels of quota granted can induce and increase exports, but the impact is not the same across all tariff lines. Answers are sought to the question of how the level of exports changes as the quota size of tariff rate quotas changes, thus enabling the investigation of whether unilateral quotas granted to South Africa by the European Union have influenced fruit products' export flows in the presence of non-tariff measures. Drawing on panel data regression techniques, this study observes five fruit products' tariff rate quotas repeatedly from 2004 to 2021. It also incorporates a variable to capture non-tariff measures based on the data from the WTO I-TIP database. The findings indicate a positive relationship between quota size and exports, further showing that for a given quota size, the increase in exports is small in the presence of non-tariff measures. These findings draw attention to future trade reforms that focus on seeking the expansion of quota size for the most productive tariff lines in terms of export growth while aiming for the simultaneous reduction of non-tariff measures and tariff rates. [ABSTRACT FROM AUTHOR]

For decades, international trade has contributed to the reduction of global poverty and the income gap between countries, and the development of intercountry exchange of agricultural products has largely ensured the solution of problems of poverty and food security. At the same time, at the present stage, a high degree of dependence of many developing countries on food imports has occured, while its global exporters have faced a number of restrictions on the supply of their agricultural products. This article analyses the impact of geoeconomic fragmentation of the international trade on the development of exports and imports of products of the agro-industrial complex (hereinafter referred to as AIC). In particular, the problems of competition in the world agro-food markets are discussed in a new context, since the growing problems of monopolisation in certain segments of the AIC disrupt the stability of agricultural markets. Exclusive attention is paid to the key aspects of the application of non-tariff measures in regulating trade of the agricultural products, which, in addition to the protective role, can have a distorting effect on world prices. Our analysis places particular emphasis on the hidden costs of global agri-food systems, which necessitate their rapid modernisation to ensure sustainability in the development of the agricultural markets and to address global food security issues.

We aim to analyse factors affecting global trade in pork and poultry markets by examining trade flow determinants through gravity models. Our gravity model analysis focuses on non-tariff measures (i.e., sanitary and phytosanitary, technical barriers to trade, and other non-tariff measures) and climate change (i.e., temperature abnormalities, precipitation abnormalities, and climatological catastrophes). Our results confirm the theoretical ambiguity of the standards-trade effects. For pork trade, sanitary and phytosanitary measures are more trade-restrictive than tariffs. For poultry trade, technical barriers to trade operate as a trade catalyst, while other non-tariff measures function as a trade barrier. Policymakers should aim for a balance between protecting public health and facilitating trade. Temperature abnormalities in importing countries harm pork and poultry imports, while precipitation abnormalities in exporting countries negatively influence poultry exports. Climatological catastrophes slightly decrease pork imports (poultry exports). Encouraging climate adaptation measures within the agricultural and food processing sectors can help mitigate production and trade disruptions for exporters and supply disruptions for importers. [ABSTRACT FROM AUTHOR]

This study aims to examine whether aid for trade can help recipient countries improve their ability to meet the non-tariff measures imposed by trading partners and alleviate these measures' negative impacts on their exports. For this purpose, we examine the impacts of technical barriers to trade that raise special trade concerns (TBT-STC), aid for trade and their interactions on the manufacturing exports of aid-recipient countries. The main findings are that the highly restrictive TBT measures have seriously hindered the manufacturing exports of recipient countries; however, aid for trade not only directly promotes exports of recipient countries but also helps alleviate the negative impact of TBT-STC on their exports. This result provides empirical evidence to support the proposal. We attempt a more-detailed analysis to assess the heterogeneity of the above-mentioned mechanisms on countries' income levels and the types of aid for trade. [ABSTRACT FROM AUTHOR]

In this paper, we study the effects of international regulatory divergence in non-tariff measures on the cross-border investment of multinational firms. We verify two main research hypotheses derived from the modified knowledge-capital model of the multinational enterprise. The first hypothesis postulates that when regulatory divergence with numerous regulatory measures in the destination emerges, trade cost also increases—stimulating horizontal multinational activity. The second hypothesis states that regulatory convergence could reduce the trade costs between the two trading partners, facilitating vertical multinational activity. To verify these hypotheses, we use firm-level data from the Orbis database for 2004–2020 and the Poisson pseudo-maximum likelihood (PPML) estimation technique. Our estimation results for the full sample of firms show that greater regulatory divergence is negatively associated with the extent of multinational activity. In addition, the convergence of technical barriers to trade seems more important than the convergence of sanitary and phytosanitary measures. Moreover, more productive firms can overcome problems associated with both technical barriers to trade and sanitary and phytosanitary distances. Finally, we find significant heterogeneity across sectors that varies according to technology intensity. [ABSTRACT FROM AUTHOR]

Exporters of food products face stringent standards due to the possibility of contaminations and diseases. Standards are complex, varying across countries, time and stage of production. The cost of compliance is, typically, borne by the exporting firm. This paper examines the impact of international food standards on the export behavior of Indian marine firms. Standards negatively affect the value of exports and participation in trade. Further, there is a heterogeneous impact of standards. Relatively larger, profitable and productive firms are able to comply with the standards and gain from them. The long-term implication could be the concentration of market power in this industry. [ABSTRACT FROM AUTHOR]

We examine how non‐tariff measures (NTMs) affect the formation of free trade agreements (FTAs), using data from 114 countries over the period 1986–2019 and applying binary response models. Splitting NTMs into eight categories, some tend to be restrictive, some promotive and some neutral, in terms of their effects on FTA formation. Technical measures tend to encourage, while non‐technical measures tend to discourage, country‐pairs to join FTAs. Aggregating all NTMs into one variable would give rise to weak conclusions. Our results for the 12 control variables are largely in line with those of previous studies on international trade flows or on FTAs but without considering NTMs. [ABSTRACT FROM AUTHOR]

This paper extends the evidence on the impact of trade reforms on firms by focusing on non‐tariff measures (NTMs), an increasingly important trade policy instrument in advanced and developing economies. We build a novel time‐varying dataset on all NTMs applied to imported products by Indonesia and quantify the trade distortions they generate. We find that unlike tariffs, which reduce plants' productivity, NTMs do not significantly affect plants' performance. However, the most trade‐reducing NTMs are associated with lower plant‐level markups, which is consistent with the increase in the cost of imported inputs induced by these NTMs. [ABSTRACT FROM AUTHOR]

This article investigates the effect of shocks to the occupational structure of exporting firms induced by the introduction of technical barriers to trade (TBTs) in importing countries. We rely on specific trade concerns data to identify trade‐restrictive TBT measures, combined with matched employer‐employee data for French exporters over the period 1995–2010, and information on the product‐destinations served by each exporter. Controlling for time‐invariant firm/occupation fixed effects and for time‐varying sector/occupation shocks, the 2SLS estimates show that exporting firms adapt to the imposition of TBTs at destination by increasing the share of managers at the expense of blue collars, white collars and other professionals. [ABSTRACT FROM AUTHOR]

Modern Regional Trade Agreements (RTAs) include, among other chapters, ones concerning sanitary and phytosanitary (SPS) measures and technical barriers to trade (TBT). Drawing on recent literature highlighting the relationship between "deep" RTAs and the global organisation of production, this paper empirically investigates whether these SPS and TBT provisions affect multinational production in the food, beverages and tobacco industry. To this end, we combine two different databases to estimate, in a panel gravity framework, both the intensive and extensive margins of multinational production. Because the extensive margin of multinational production may be persistent, a dynamic probit specification is used. Our results show that legally enforceable SPS sections in RTAs, in particular, influence multinational production, though with a rather differentiated pattern in terms of intensive and extensive margins; further, the impact changes depending on the country of origin and destination. [ABSTRACT FROM AUTHOR]

This paper combines a database on non-tariff measures (NTMs) with Morocco's firm-level census to explore the effect of regulatory harmonization with the E.U. on firms' outcomes. Exploiting cross-sectoral variation in the timing and extent of regulatory harmonization, we find that harmonization waves correlate with rises in productivity, with higher markups and with greater numbers of exporting firms. These effects were reinforced by an induced market-structure change: harmonization temporarily protected the Moroccan market from competition from low-end producers in other developing countries, who took time to adapt. We identify these effects through changes in both trade patterns and firm-level outcomes. [ABSTRACT FROM AUTHOR]

As tariffs have declined to a low level, the trade literature has paid increasing attention to the impact of non-tariff measures. Unlike tariffs, non-tariff measures could act as both a barrier to trade and a catalyst for quality upgrading. This study examines the effect of technical barriers to trade (TBTs) on trade margins and quality upgrading at the firm level. To do so, we utilise rich Chinese Customs data recording the universe of export transactions from 2000 to 2012, matched with the Annual Survey of Industrial Firms and the World Trade Organization's Specific Trade Concerns database. We find that TBTs imposition results in higher probability of exit. Surviving exporters enjoy larger sales and charge higher export prices. We also find robust evidence for the quality upgrading effects of TBTs. Firms upgrade their product quality by expanding their research and development and importing more intermediate inputs and capital goods. The positive impact of TBTs on quality upgrading offsets that on price increases, resulting in lower quality-adjusted export prices. This suggests the net welfare-enhancing effect of TBTs for the consumers of imported products. The results hold after controlling for potential endogeneity and across various specifications. [ABSTRACT FROM AUTHOR]

Trade negotiators are confronted with the policy challenge of determining which non-tariff measures (NTMs) and products to focus on, particularly in the agriculture and food sectors, which face a prevalence of NTMs. Quantitative advice on the trade effects of different measures can inform one aspect of a negotiator's multifaceted prioritization process. Despite well-established methods for the quantification of trade policies at an aggregate bilateral trade level, the product-level literature suffers from a general misapplication of economic theory, leaving much of it divergent from microeconomic foundations. Furthermore, the literature generally makes compromises that inhibit the ability to draw useful insight on importer-specific policy variables like NTMs. In light of this gap in the literature, we propose an approach that leads to a proof-of-concept quantification methodology for bilateral product-level analysis, fulfiling a need in the body politic to defensibly identify trade effects of NTMs at a bilateral and product level. International grains markets are used as an example to demonstrate the proof-of-concept. [ABSTRACT FROM AUTHOR]

The substantial increase in greenhouse gas emissions in recent decades has led to a significant rise in global warming and climate change. In response, governments have introduced policies, including environmental trade regulations, to promote sustainable supply chains. These measures unevenly impact countries, with developing nations facing more significant challenges due to their reliance on primary and agribusiness sectors. Large farms and firms in agrifood chains can often comply with these regulations. However, small and medium producers need help with the financial and technical burdens, risking exclusion from global markets, environmental damage, and reduced productivity and income. Addressing these issues is essential for adapting to and mitigating climate change, enhancing agrifood sustainability, reducing rural poverty, and improving food security in developing countries. This paper proposes immediate G20 actions for South America, such as financing research and extension institutions to develop sustainable agricultural practices for small producers and creating regional programs to encourage forest conservation and low-carbon agriculture. Wealthy countries should fund these initiatives, as they are the ones that impose the strictest environmental measures on international trade.

• 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]

Introduction: With the increase in non-tariff measures (NTMs) in recent years, understanding their impact on trade policies and agricultural exports is of utmost importance for countries like Sri Lanka, where the proliferation of NTMs has posed substantial impediments to its mango export industry. However, studying NTMs can be challenging due to their complex nature, diverse range, and limited information availability. Methods: This research aims to investigate the significant effect of NTMs on Sri Lankan mango exports, identify the pivotal drivers influencing mango exports, and analyze the performance of mango exports in Sri Lanka. This study utilized a panel dataset of 16 importing countries spanning the period from 2000 to 2021. The primary focus was on examining NTM-related challenges and obstacles faced by the mango export industry in Sri Lanka. The identification and quantification of these obstacles were achieved through a multifaceted approach in which assessment of NTM-related rejections, both domestic and overseas, evaluation of NTM incidences using frequency and coverage ratio measures, and the deployment of various gravity model equations to quantify the effect of NTMs were taken into consideration. Probit, Ordinary Least Square, Random Effects, and Poisson Pseudo Maximum Likelihood estimation techniques were utilized for data analysis. Results: The findings indicate a significant inverse correlation between the increase in the total count of NTMs and Sri Lankan mango exports if the country aims to export more mangoes to relevant markets, while Sanitary and Phytosanitary Measures (SPS), Technical Barriers to Trade (TBT), and Pre-shipment Inspection (PSI) contributed to increased mango exports. Among other explanatory variables, the GDP of both importing and exporting countries had a positive influence on Sri Lankan mango exports. Surprisingly, the distance to the importing country had no significant effect, though it shows a negative sign. Discussion: This study provides valuable insights into the impact of NTMs on Sri Lankan mango exports. It highlights the considerable influence of NTMs on the overall fresh fruit export sector. We recommend proactively aligning internal quality testing regulations with the standards required by destination countries to promote future expansion. [ABSTRACT FROM AUTHOR]

Despite numerous attempts to remove tariff and non-tariff barriers, the average number of barriers in the agricultural sector, particularly in the palm oil sector, is rising. Non-tariff effects are subjective, which makes them challenging to quantify. A new palm oil trade restrictiveness index that considers each trade barrier imposed on palm oil exports, such as tariff and non-tariff measures, is necessary to facilitate the sector's exports. Hence, this study aims to calculate the trade restrictiveness index (TRI) of palm oil and analyse its impact on Malaysia's and Indonesia's palm oil exports. This study uses a gravity model with Poisson pseudo-maximum likelihood (PPML) estimation to analyse the impact of trade barriers on world palm oil export for a sample of 59 major palm oil importing countries from 2009 to 2019. The study revealed that each importing country imposes different restrictions on Malaysia and Indonesia. The TRI showed a negative and significant relationship influencing palm oil exports in the case of Malaysia, while a positive and significant relationship for Indonesia. The policy implications of this study suggest that policymakers in both Malaysia and Indonesia should take proactive steps to comply with every criterion demanded by the importing country.

Higher levels of quota granted can induce and increase exports, but the impact is not the same across all tariff lines. Answers are sought to the question of how the level of exports changes as the quota size of tariff rate quotas changes, thus enabling the investigation of whether unilateral quotas granted to South Africa by the European Union have influenced fruit products’ export flows in the presence of non-tariff measures. Drawing on panel data regression techniques, this study observes five fruit products’ tariff rate quotas repeatedly from 2004 to 2021. It also incorporates a variable to capture non-tariff measures based on the data from the WTO I-TIP database. The findings indicate a positive relationship between quota size and exports, further showing that for a given quota size, the increase in exports is small in the presence of non-tariff measures. These findings draw attention to future trade reforms that focus on seeking the expansion of quota size for the most productive tariff lines in terms of export growth while aiming for the simultaneous reduction of non-tariff measures and tariff rates.

IntroductionWith the increase in non-tariff measures (NTMs) in recent years, understanding their impact on trade policies and agricultural exports is of utmost importance for countries like Sri Lanka, where the proliferation of NTMs has posed substantial impediments to its mango export industry. However, studying NTMs can be challenging due to their complex nature, diverse range, and limited information availability.MethodsThis research aims to investigate the significant effect of NTMs on Sri Lankan mango exports, identify the pivotal drivers influencing mango exports, and analyze the performance of mango exports in Sri Lanka. This study utilized a panel dataset of 16 importing countries spanning the period from 2000 to 2021. The primary focus was on examining NTM-related challenges and obstacles faced by the mango export industry in Sri Lanka. The identification and quantification of these obstacles were achieved through a multifaceted approach in which assessment of NTM-related rejections, both domestic and overseas, evaluation of NTM incidences using frequency and coverage ratio measures, and the deployment of various gravity model equations to quantify the effect of NTMs were taken into consideration. Probit, Ordinary Least Square, Random Effects, and Poisson Pseudo Maximum Likelihood estimation techniques were utilized for data analysis.ResultsThe findings indicate a significant inverse correlation between the increase in the total count of NTMs and Sri Lankan mango exports if the country aims to export more mangoes to relevant markets, while Sanitary and Phytosanitary Measures (SPS), Technical Barriers to Trade (TBT), and Pre-shipment Inspection (PSI) contributed to increased mango exports. Among other explanatory variables, the GDP of both importing and exporting countries had a positive influence on Sri Lankan mango exports. Surprisingly, the distance to the importing country had no significant effect, though it shows a negative sign.DiscussionThis study provides valuable insights into the impact of NTMs on Sri Lankan mango exports. It highlights the considerable influence of NTMs on the overall fresh fruit export sector. We recommend proactively aligning internal quality testing regulations with the standards required by destination countries to promote future expansion.

Most studies on the impacts of non‐tariff measures (NTMs) on economic outcomes are at the macro‐level with limited micro‐level studies. This study uses primary data on 604 commercial farm households in Ghana to examine the relationship between NTMs and household welfare outcomes. The results show that NTMs are positively associated with assets, household expenditure and income but negatively associated with food expenditure, household dietary diversity score (HDDS) and poverty probability index (PPI). We find that the results are not likely to be driven by unobserved heterogeneity. Our results suggest that the potential mechanisms through which NTMs influence welfare outcomes are household income and expenditure. The main implication of the study is that a reduction in the number of customs formalities and the cost of testing and certification can facilitate trade and contribute to the economic development of commercial farm households. [ABSTRACT FROM AUTHOR]

Despite numerous attempts to remove tariff and non-tariff barriers, the average number of barriers in the agricultural sector, particularly in the palm oil sector, is rising. Non-tariff effects are subjective, which makes them challenging to quantify. A new palm oil trade restrictiveness index that considers each trade barrier imposed on palm oil exports, such as tariff and non-tariff measures, is necessary to facilitate the sector's exports. Hence, this study aims to calculate the trade restrictiveness index (TRI) of palm oil and analyse its impact on Malaysia's and Indonesia's palm oil exports. This study uses a gravity model with Poisson pseudo-maximum likelihood (PPML) estimation to analyse the impact of trade barriers on world palm oil export for a sample of 59 major palm oil importing countries from 2009 to 2019. The study revealed that each importing country imposes different restrictions on Malaysia and Indonesia. The TRI showed a negative and significant relationship influencing palm oil exports in the case of Malaysia, while a positive and significant relationship for Indonesia. The policy implications of this study suggest that policymakers in both Malaysia and Indonesia should take proactive steps to comply with every criterion demanded by the importing country. [ABSTRACT FROM AUTHOR]

Unlike the sound purposes of the NTMs to shape the necessary protection to ensure consumers and environmental safety, the majority of the past literature often addressed the adverse impact of NTMs on international trade. Among the past literature, only a handful of studies dealt with the relationship between non-tariff measures and participation in global value chains. We address two research questions. First, what are the impacts of technical regulations on participation in global value chains? Second, does the impact of technical regulations differ across the sectors? With the recently published non-tariff measures data from UNCTAD-TRAINS, this study constructs the Additional Compliance Requirement Indicator to test whether technical regulations facilitated or sabotaged the backward and forward participation in global value chains. The results indicate that additional burdens for exporters hamper global value chain participation through both backward and forward participation. Moreover, technical regulations in the agriculture sector seem to be more harmonized compared to the manufacturing sector. As technical regulations often serve as sound measures to shape the necessary protection for consumers and environmental safety, harmonization of the technical regulations is preferred rather than mere eradication. [ABSTRACT FROM AUTHOR]

The aim of this study is to quantify the trade effects of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which is considered to be a comprehensive trade agreement. To this end, we estimate the gravity equation for worldwide trade and introduce applied tariffs into this equation to differentiate between the trade effects of tariff reduction and non-tariff measure (NTM) changes. Our gravity equation results indicate that the trade effect of NTM changes under the CPTPP is insignificant on average and negative for most products. We also estimate the gravity equation for foreign direct investment (FDI) and find some evidence that the CPTPP increased FDI by a statistically significant amount. Thus, the NTM changes in the CPTPP may increase FDI, rather than trade, among member countries. [ABSTRACT FROM AUTHOR]

Background: This article assesses whether the European Union's (EU's) plant health regulations have had an impact on imports. A dynamic modelling approach was applied, using a two‐step generalized method of moments estimator for panel data, and covering an 8‐year period (2013–2020). The estimated equation includes volumes of trade, economic drivers, the trading partner, and variables capturing categories of import requirements (phytosanitary certificates, exemptions, restrictions) with regards to external border measures for enhanced biosecurity. Results: From the analysis we can conclude that the import regime and its recent changes have had a limited impact, if any, on trade flows of the affected products. The most significant impact is found for products classified as high‐risk plants, while the extension of the phytosanitary certificate requirement to new products seems to have had negligible effects on trade. Conclusion: Therefore, the plant protection regime for extra‐EU trade seems to be not trade distorting while supplying a framework to enhance plant health in the EU. © 2023 The Authors. Pest Management Science published by John Wiley & Sons Ltd on behalf of Society of Chemical Industry. [ABSTRACT FROM AUTHOR]

This paper aims to investigate the factors influencing the international beef market's trade flows by applying the gravity model. We focus on the effects of trade networks, non-tariff measures, and natural disasters on the beef trade. This is the first study to incorporate network analysis eigenvector scores into the gravity approach with a view to examining the impact of trade network improvements on trade. Eigenvector centrality scores reveal the prominent role played by the European and Southern Common Market countries and show a well-connected beef network. The results of our gravity model show that beef trade increases more when an importer improves its position in the trade network, shedding light on the importance of strategic network engagement. We also show that Sanitary and Phytosanitary measures are more trade-restrictive than tariffs, a finding which emphasises the need for trade policy to pay attention to such measures. Meteorological (hydrological) catastrophes hurt beef imports (exports); this highlights the importance of implementing safeguarding measures on beef farms. [ABSTRACT FROM AUTHOR]

This paper analyzes the effects of Non‐Tariff Measures (NTMs) on exports while considering the degree of participation in the global value chains (GVCs). Standard‐like non‐tariff measures, such as Sanitary and Phytosanitary Standards (SPS) and Technical Barriers to Trade (TBT), have influenced trade by increasing trade costs or improving consumers' awareness. Theoretically, NTMs can have either positive or negative effects on trade flows. In this study the characteristics of the production process are considered in order to disentangle the arguments of 'standards as barriers' and 'standards as catalyst'. Due to the expansion of GVCs, NTMs have accumulated along production processes. Cumulative NTMs along the GVCs affect not only the direct trade sector and its partners, but also other relevant sectors and countries indirectly through the production chains. We use panel data on product‐level ASEAN exports for 2007–2019 to estimate the effects of NTMs depending on GVC participation. The estimated results show that the impact of SPS and TBT is heterogeneous according to the degree of GVC participation. While SPS and TBT regulations have been found to promote trade, their positive effects are less significant for industries involved in forward and upstream GVC participation. This reflects the characteristics of these sectors, which require higher levels of technology and skilled labour compared to backward GVC participation and downstream sectors. As a result, ASEAN exporters heavily involved in forward and upstream GVCs face increased production costs to comply with the requirements of the standard‐like NTMs. The increased production costs limit the trade‐promoting effects of the standard‐like NTMs. [ABSTRACT FROM AUTHOR]

In several African regions, economic integration has successfully reduced tariff protection by freezing the opportunity to raise applied tariffs against fellow integration partners above those promised. We examine whether these regional tariff commitments have come at the expense of adverse side-effects on the prevalence of non-tariff trade barriers. Comparing the effects of applied tariff overhangs – the difference between MFN bound tariffs and effectively applied tariffs – towards all vis-à-vis African trading partners on SPS and TBT notifications of 35 African WTO members from 2001-2017, we find no general relationship between tariff overhangs and import regulation in our preferred model setting. Larger tariff overhangs specific to intra-African trade relations, however, increase the probability of SPS measures and TBT and thereby contrast with the common assumption of the former functioning as a flexible policy valve. We see the nature of Africa's formal trade relations as an explanation for these findings. While regional tariff commitments have not only significantly moved African countries away from multilateral commitments, they have also sharply reduced their tariff policy space within Africa, thus seemingly leaving regulatory policy as one of the few legitimate options to level the playing field with the by far closest market competitors. [ABSTRACT FROM AUTHOR]

This study empirically investigates the relationships between tariffs and non‐tariff measures before and after the global financial crisis (GFC). The panel analysis is based on traded products of 70 countries from 1997 to 2015. For developed countries, we find that tariffs and non‐tariff measures were complementary before the crisis, but they became substitutional afterward. We do not find such shift for developing countries. We also run the analysis by income levels and by types of products and observe differential effects of the GFC on the relationship between the two trade policies. [ABSTRACT FROM AUTHOR]

The COVID‐19 pandemic resulted in large and varying declines in bilateral trade flows. This study investigates whether these diverse effects can be explained by differences in trade costs as measured by pre‐existing trade policies (e.g. tariffs, non‐tariff measures and trade agreements). Results indicate that trade flows subject to higher trade costs declined more than average during 2020. The results also show that trade costs have heterogeneous effects depending on the thickness of trade relationships, with small exporters being relatively more affected by the presence of trade costs. We interpret the results as evidence that the fall in demand during 2020 caused higher‐cost and less‐established suppliers to be squeezed out of international markets. [ABSTRACT FROM AUTHOR]

This paper estimates the bilateral trade costs between Bangladesh and its leading trading partners before investigating the factors that influence Bangladesh's import costs, including the contribution of NTMs. To measure implied bilateral trade costs, we first deploy an inverse gravity equation. We then estimate the determinants of import trade costs at the HS 6-digit product level, applying PPML estimation techniques to a gravity model, using a unique new NTM database developed for the current study. Our results show that imports to Bangladesh are related in an expected way to common trade cost proxies and that NTMs negatively impact imports. [ABSTRACT FROM AUTHOR]

The Indonesian government has been working hard to engage with the world market as tariffs continue to decrease. However, the government seems to be following the global trend of relying on non-tariff measures (NTMs) to regulate the Indonesian market and protect the country's industries. This paper assesses whether these measures hurt firms by limiting their access to better quality and cheaper foreign inputs. It builds on the findings of Amiti and Konings (2007) by assessing the impact of trade policy shocks on firms' total factor productivity (TFP). It finds that tariffs and NTMs hurt firms' TFP significantly and reduce employment. The impact is less severe for bigger firms, confirming the heterogeneous effect of trade policy. The results suggest unintended consequences of protectionism in the Indonesian market. Moreover, as the country seeks to boost foreign investment, more protectionism may be used to keep mark-ups in the domestic market high as an incentive. [ABSTRACT FROM AUTHOR]

Abstract This paper aims to discuss and demonstrate the non-tariff challenges to Mercosur’s trade integration. Its Common External Tariff (CET) and exceptions will be discussed, as well as the evolution of its non-tariff protectionism framework in the last three decades. This is an unprecedented exploratory exercise on all 5019 non-tariff measures (NTM) notified by Mercosur members to the WTO from 1995 to 2020. As main results, we see that (i) members with fewer exceptions to the CET are the ones that most use NTMs to protect their markets; (ii) the stock of NTMs targeted at members and non-members varies accordingly; (iii) of the 10 countries most targeted by NTMs imposed by Mercosur members, its own members figure in the 3rd, 4th, 7th, and 8th positions; (iv) the bloc lacks deep regulatory harmonization, especially with regard to sanitary and phytosanitary barriers in 11 sectors. Based on these results, two critical policy action plans are suggested to the bloc.

Non-tariff measures as hidden barriers to agricultural trade would not only result in production and welfare distortions due to the international relocation of activities along the agricultural value chain, but also yield subsequent consequences to both the scale and distribution of carbon emissions from the agri-food system. This paper estimates ad valorem equivalents of non-tariff measures using a gravity model in combination with detailed bilateral trade data of 2001-2019, and incorporates the estimations in the Global Trade Analysis Project model and a multi-regional input-output table of Eora26 to quantify economic and environmental impacts of non-tariff measures. We show that while tariff equivalents are on average positive for all types of non-tariff measures, there are substantial heterogeneities across countries and products. The extra trade barriers imposed by these measures would increase the scale of domestic agriculture-related sectors for most agriculture importing countries, and vice versa for major exporters. Meanwhile, they would reduce the global welfare at amount of 16 millions US dollars on average and in particular, the welfare of key imposers and targeting markets of non-tariff measures. Carbon emissions from the agri-food system tend to increase about 1% around the world, especially due to the larger food processing industry in developed countries. Our paper confirms that non-tariff measures lead to both welfare distortions and carbon emissions in the agri-food system. It thus calls for urgent needs to promote further reforms of the agricultural trade regime and the policy coordination across countries to facilitate agri-food system transformation with more integration and sustainability. [ABSTRACT FROM AUTHOR]

In the last few decades, the implementation of tariff policies between countries has declined. As a result, the enforcement of non-tariff measures (NTMs) experiences an increase. Implementing NTMs raises a new obstacle to trade activities in the global market, including the trade of Indonesia’s natural rubber. Therefore, this study was conducted to determine the effect of enforcing NTMs on the export competitiveness of Indonesia’s natural rubber. This study utilized secondary data from UN COMTRADE on 1995 to 2019. The data was analyzed using frequency index, coverage ratio, comparative advantage, and two-stage least square regression model. The results revealed that India, China, and the USA enforced the most NTMs of Indonesia’s natural rubber. Additionally, the implementation of NTMs in importing countries positively correlated to the export competitiveness of Indonesia’s natural rubber in destination countries.

This paper assesses the determinants of temporary non‐tariff measures (NTMs) in response to COVID‐19 and their implications for the agricultural and food trade. Using a control function approach, we show that economic and pandemic considerations played an essential role in implementing such NTMs. Relying on variation between treated and untreated varieties, we estimate a dynamic post‐event trade response of 5.4% for import facilitating and −27.5% for export restricting NTMs. After revoking them, their trade effects fade away, implying that these temporary trade policies were effective in achieving the set policy goals, causing only a limited degree of long‐term trade disruptions. [ABSTRACT FROM AUTHOR]

Non-Tariff Measures (NTMs) are usually defined as trade costs. Their reduction through regulatory alignment increases trade and could thus be beneficial for countries concerned. NTMs include any regulations at and behind the border (i.e. domestic regulations) that may have an impact on trade. This view of NTMs does not account for potential benefits on public policy goals, welfare, value addition and trade flows. Further, asymmetrical NTM alignment between countries with strongly divergent regulatory standards will cause adjustment and compliance costs. Here we integrate the effects of compliance costs for producers emerging from regulatory alignment into the 'ÖFSE Global Trade' model. We use the ongoing negotiations on the Deep and Comprehensive Free Trade Agreement between the EU and Tunisia (ALECA) to empirically assess the compliance costs for Tunisian agricultural producers to align to EU standards and model potential economic impacts. Scenario designs for our simulation analysis build on firm surveys. Results show that North-South trade agreements with asymmetrical regulatory alignment involve substantial adjustment costs for Southern producers and lead to losses in exports, value-added and employment, resulting in high economic and social costs that need to be weighed by policy-makers against any perceived long run gains from regulatory alignment. [ABSTRACT FROM AUTHOR]

The purpose of the paper is to present a methodology for measuring contemporary protectionism - based on data from Poland. In light of the difficulties in assessing all trade barriers, an approximation was proposed: the regional barometer of protectionism (RBP). Recognizing that 21st century protectionism is observable only to a certain extent, the research is based on data that reflect the level of this phenomenon - i.e., media releases as well as Global Trade Alert data. In constructing this barometer, the TOPSIS method (a Technique for Order Preference by Similarity to an Ideal Solution) was used. The RBP constructed (for 2009-2020) is the first regional barometer of protectionism. The results of the research reveal the level and dynamics of protectionism in the case of Poland. This RBP improves the methodology of foreign trade analysis by providing a thorough basis for further research into both the effects and causes of protectionism; this paper presents initial explanations for the latter. Furthermore, after the barometer of protectionism is constructed, trade barriers may eventually be included in further research for models designed to explain Polish trade. [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]

In recent years, increased availability of services trade data and measures of non‐tariff barriers has enabled more detailed analysis of trade patterns, including the relationship between different modes of service delivery across international borders. This paper uses a detailed, sector‐level structural gravity model to shed light on the question of whether services trade via foreign affiliate sales (also known as mode 3 trade) is a complement or substitute for cross‐border services trade (modes 1, 2, and 4) in 13 services sectors. In 9 of the 13 sectors considered, there is a negative and significant relationship between trade policies that limit foreign affiliate sales and cross‐border trade, indicating a complementary relationship between the two types of trade flows. This suggests that when services firms export, they rely on multiple modes of supply to deliver their products, considering factors such as the degree of service tradability over the internet, levels of customer interaction, and complexity of particular tasks. [ABSTRACT FROM AUTHOR]

This study investigates the impacts of non-tariff measures (NTMs) on tariff evasion in agriculture. We find that sanitary and phytosanitary standard measure of tolerance limits for residues and restricted use of substances significantly reduces tariff evasion. We also find that this dampening impact occurs via price underreporting rather than quantity underreporting or product misclassification. Heterogeneous analysis shows that this impact exists for developing countries but not for developed countries. These findings highlight the importance of accounting for NTMs' impacts on tariff evasion in agricultural trade policy analysis. [ABSTRACT FROM AUTHOR]

This study aimed to highlight the role of non-tariff measures in achieving the trade protection policy by studying the extent to which Algerian exports destined for international markets are affected by the amount of those measures imposed on them, by analysing the number of non-tariff measures they are exposed to and the most important commodities affected by them by the most dealing trading partners. With Algeria by adopting both the descriptive approach and the analytical approach to address our problem, this study concluded that the European Union is the largest trading partner that acquires the highest percentage of Algerian exports. The agents under study are technical and sanitary and phytosanitary measures in addition to quantitative restrictions. [ABSTRACT FROM AUTHOR]

Non-tariff measures (NTMs) are relevant to agricultural trade policies, especially since trade negotiations have significantly decreased tariffs. Countries impose Sanitary and Phytosanitary Measures (SPS), a technical NTM, to protect human, animal, and plant health by regulating specific food quality and safety aspects. This article aims to assess the impact of SPS measures imposed by Chile’s main trading partners on agricultural trade, specifically on the value of fruit exports. It also seeks to determine the effects of harmonizing technical regulations between Chile and its partners. We estimated a gravity equation as a negative binomial regression model with Chilean fruit exports to main destination markets from 2010 to 2019 as the dependent variable. Our results confirm a negative impact of foreign SPS measures on Chilean fruit exports. However, that impact is mitigated if Chile has a harmonized SPS measure. Thus, we can conclude that harmonization reduces the negative effects of foreign SPS measures on exports. Our results suggest that trade agreements, which often contain a chapter on SPS, positively contribute to SPS harmonization and mitigate SPS’s negative impacts on trade flows. Highlights: • Sanitary and Phytosanitary Measures (SPS), aim to protect human, animal, and plant health by regulating specific food quality and safety aspects. • The impact of SPS on trade flows has been largely analyzed with heterogeneous results depending, among others, on their characteristics, as the level of harmonization. • Harmonization reduced the negative effects of SPS measures on Chilean fruit exports flows. • Trade negotiations might positively contribute to SPS harmonization, especially whether agreements have an SPS chapter that encourages coordination.