This paper represents the opinions of the authors, and is the product of professional research. Nontariff barriers to international trade world problems. These two tariffs databases are the main sources of data used in the estimation of the indicators. The term non tariff measures ntms covers a diverse set of measures in terms of purpose, legal form and economic effect. Staiger stanford, wisconsin and nber december 31, 2011 abstract in this paper i sketch out the rough contours of the challenge faced by the wto in dealing with non tari. The classifcation of non tariff measures presented here is a taxonomy of all those measures considered relevant in todays situation in international trade. Unctad programme on nontariff measures in world trade. The effect of non tariff measures on trade is a growing area of interest in international trade research. A shorter version of this paper appeared as chapter 2 in nontariff measures. The factbased contributions herein provide a solid overview of the evolving role of non tari. Monica eaton, bradley leatherbarrow, zachary shapiro, jose e.
The term nontariff measures ntms covers a diverse set of measures in terms of. It is based on the unctad coding system and was developed by several international organizations forming what was called the mast group multi. The compilation of data gathered during the two rounds of interviews led to a unique database covering goods exported from all 28 eu member states, by companies of all sizes, in 26 agricultural and industrial sectors. E v acknowledgements this paper is based on data from the international trade centres itc business survey on nontariff measures ntms in the european union eu conducted with the support of the european commission in 2015 and 2016.
An introductionary guide raoul minetti, luca salvatici1 fondazione manlio masi via listz 21,0014 roma tel. However, it is favoured as an appropriate measure to meet the demand of the country and to protect the industry. Non tariff measures are generally defined as policy measures other than ordinary customs tariffs that can potentially have an economic effect on international trade in goods, changing quantities traded, or prices or both. It is the result itcs work over several years to which many people have contributed. If a party considers that a non tariff measure of the other party is an unnecessary. Three essays on nontariff measures and the gravity equation. Available data do not show any clear increasing trend in the overall use of nontariff measures in the last decade. Mexico imposes non tariff measures to protect national security, public health, plant and animal health or the environment and for balanceofpayments reasons. Since this definition is broad, a detailed classification is of critical importance so as to better identify and distinguish among the various forms of non tariff measures. The chapters in the classification a sps b tbt c preshipment inspection and other formalities d contingent tradeprotective measures e non automatic licenses, quotas, prohibitions, quantitycontrol measures f pricecontrol measures, taxes and charges. Trade defence measures, technical measures and their specific trade concerns stcs, quantitative restrictions, the ntms from the agreement on agriculture and information on state trading enterprises. Quantifying the effects of non tariff measures on international trade flows is most difficult. E october 2016 leila baghdadi wto chair, tunis business school, university of tunis, tunisia sonia ben kheder essect and wto chair, tunis business school, university of tunis, tunisia hassen arouri national institute of statistics, tunisia. Top 6 types of nontariff barriers managerial economics.
Unctad programme on non tariff measures in world trade in a context where tariffs have significantly decreased over the last few decades, non tariff measures ntms have become major determinants in restricting market entry, particularly for developing countries. As a result, wits offers an interface that provides access to databases covering imports, exports and protection data tariff and non tariff measures over time. Nontariff barriers to trade and the wto 3 with regard to categoryclassification of non tariff measures, since the definition of non tariff measures is very broad, discussing a detailed classification is very important in order to better identify the various forms of non tariff measures. At the same time, the number of nontariff measures ntms, including.
Non tariff measures and the world trading system1 josh ederington university of kentucky michele ruta world bank jel. Non tariff barriers encompass a wide range of specific measures, many of whose effects are not easily measured. Nontariff measures streamlining nontariff measures a toolkit of r policy makers thank you for your attention. Non tariff measures tiada terjemahan di dalam bahasa malaysia the concept of ntms is very broad, and includes a number of different measures, ranging from quantitative restrictions of all kinds, technical regulations, standards, sps measures, customs rules, etc. Non tariff measures, specific trade concerns and tariff reduction working paper pdf available january 2015 with 83 reads how we measure reads. It was extensively discussed and agreed upon by several international organizations forming what was called the mast group multiagency support team to. In fact, unctad research shows that the ability to gain and benefit.
Nzier public discussion paper quantifying the costs of nontariff measures in the asiapacific region i key points asiapacific trade is characterised by the increased use of nontariff measures as tariff levels fall over time, the use of nontariff measures ntms has become more common in the asiapacific region. The itc programme on non tariff measures main objective. The trade effects, protectionism, and political economy of. Nontariff barriers to trade ntbs or sometimes called non tariff measures ntms are trade barriers that restrict imports or exports of goods or services through mechanisms other than the simple imposition of tariffs the southern african development community sadc defines a non tariff barrier as any obstacle to international trade that is not an import or export duty. Addressing non tariff barriers on regional trade in southern africa ian gillson and nick charalambides1 january 2011 introduction a recent and important trend in global trade has been the proliferation of regional trade agreements rtas and southern africa is no exception. The impact of nontariff measures on agrofood export. The non tariff measure include of some constraint to trade.
Julia grubler with mahdi ghodsi and robert stehrer pronto annual conference. To ensure stakeholders in beneficiary countries are aware of ntms and other obstacles affecting their trade, so that they are in a better position to address these challenges. Figure 2 illustrates the distribution of ntms across five main chapters. According to the world trade organization, non tariff barriers to trade include import licensing, rules for valuation of goods at customs, preshipment inspections, rules of origin made in, and trade prepared investment measures. Pdf nontariff measures in indian context and the european. Indicators related to non tariff measures ntms are calculated based on the information notified by the wto members. As a type of protectionist policy, non tariff barriers produce the general consequences identified above. Over the past fifty years, there has been significant progress in lowering tariff barriers to international trade. Evsl atl evsl stands for early voluntary sectoral liberalization, an initiative taken by apec during the 1997 ministerial meeting in vancouver. Assessing the impact of non tariff measures on imports. This is a working paper, and hence it represents research in progress. The evolution of nontariff measures and their diverse. The objective of this study is an attempt to measure the impacts of technical barriers, institutional quality and infrastructure on trade, particularly agrofood.
With tariffs the government receives the revenue whereas no revenue is received by the government by applying non tariff measures. The classification of nontariff measures presented here is a taxonomy of all those measures considered relevant in todays situation in international trade. The upcoming discussion will update you about the difference between tariff and non tariff barriers. Pdf non tariff measures, specific trade concerns and. Non tariff measures ntms have become increasingly present in markets whereas border tariffs have been reduced from successive rounds of general agreement on tariffs and trade gatt and the world trade organization wto. Nontariff measures add approximately a significant 26 27 percent to the cost of trade and investment in the automotive sector in both directions that could be reduced to 14 percent in the eu and 15 percent in the us a 42 percent and 48 percent reduction respectively, based on actionability of the ntms found.
Advantages and disadvantages of ntms economics essay. There are various reasons why policymakers and trade analysts should worry about nontariff measures ntms. Quantifying nontariff barriers to trade and investment 27 february 2016. Nonautomatic licensing, quotas, prohibitions and quantity control measures other than for sps or tbt reasons 1607 6. It is worth bearing in mind that in many cases, non tariff measures are used to pursue legitimate policy goals. World trade organization integrated trade intelligence. The paper examines how nontariff measures ntms applied by the european. I in this chapter, we will determine the role of sps and tbt measures on the exports of pakistan. Quantifying the costs of nontariff measures in the asia. Such behindtheborder measures include domestic legislation covering health technical product labor environmental standards, internal taxes or charges, and domestic subsidies. Nontariff measures ntms are policy measures, other than ordinary customs tariffs, that can potentially have an economic effect on international trade in goods, changing quantities traded, or prices or both source. Meanwhile, the proliferation of non tariff measures ntms, including sanitary and phytosanitary sps measures and technical barriers to trade tbts, has been triggering trade concerns and protracted trade disputes, and efforts to harmonize these measures.
Some ntms are manifestly employed as instruments of commercial policy e. Nontariff measures, specific trade concerns and tariff reduction working paper pdf available january 2015 with 83 reads how we measure reads. E v acknowledgements this paper is based on data from the international trade centres itc business survey on non tariff measures ntms in the european union eu conducted with the support of the european commission in 2015 and 2016. In recent years, numerous methodologies have been proposed for estimating the trade costs associated with non tariff measures. The rise of nontariff measures united nations escap. Nontariff measures overview glossary of related terms. An inventory of nontariff measures and services measures.
Furthermore, exporters and domestic producers differ in their capacities to cope with. On an average, countries impose tbts, quality control and sps on 32%, 24% and 16% of trade, respectively. There is also a link to the technical notes which describe in more detail the indicators available in. Itc working paper series international trade centre. What is on the table would constrain the scope for tariff protection in all goods, ban agricultural export subsidies in the industrial countries and sharply reduce the scope for distorting domestic support by 70 per cent in the eu and 60 per cent in the us. As this book shows, all these policies measures, generally referred as non tari. International classification of nontariff measures unctad. Import impact of chinas non tariff measures shunli yao and yunhua tian institute for applied international trade iait wtoescapartnet capacity building workshop.
Non tariff measures include a very diverse array of policies that countries apply to imported and exported goods. Insights from a business survey in the european union iv mar1666. Nontariff measures in euus trade and investment an. Most of nontariff measures ntms are now included in itip. International trade commission 1, 2 the compilation of ntms for goods and services described in this paper cover 53. Over the years, globalization has been associated with greater interdependency among states and new types. Local profits, transportation, handling charges etc. Nontariff measures are generally defined as policy measures other than ordinary customs tariffs that can potentially have an economic effect on international. Eminent persons on nontariff barriers established by the secretarygeneral of unctad in 2006. Itc and ec encourage the reprinting and translation of this publication to. Key aspects of nontariff measures and economic development.
Non tariff measures and indian textiles and clothing exports gordhan k. However, several ntbs have proved hard to solve and new ones have emerged. Saini introduction during past two decades, with the eight gatt rounds of multilateral trade liberalization, applied tariffs have been halved on average globally and policy makers have started grasping the importance of non tariff measures ntms. Countries are allowed by the wto to regulate their imports and exports in order to achieve legitimate nontrade. Mexico therefore prohibits the import of certain chemicals and drugs 22 products of the hs 2012 at eightdigit level. With the reduction in tariff barriers, non tariff and behindtheborder measures ntm and btb have increased in importance. It also examines whether regulatory harmonization andor mutual recognition help. Compliance to non tariff measures such as tbt and sps requires meeting stated process benchmarks and certifications, which add to costs, thus. Staiger dartmouth and nber may 2018 abstract in this paper i sketch out the rough contours of the challenge faced by the wto in dealing with non tari. One must first identify the non tariff measure facing exporting countries. In the presence of information asymmetries, the imposition of standardlike ntms e. The financial express, 12 february, 2018 nontariff measures.
Nontariff measures and indian textiles and clothing exports. Non tariff measures and standards in trade and global value chains, staff general research papers archive 38908, iowa state university, department of economics. This paper surveys the state of knowledge with the view to drawing implications for policy suggestions to reduce those ntm barriers that are welfare reducing. E iii acknowledgements this paper is based on the data from the international trade centres itc business surveys on non tariff measures ntms in 23 developing countries.
This emergence of ntms, especially standards like ntms, has been also motivated by concerns about market imperfections to address asymmetric information and external. Rules of origin as non tariff measures 12th artnet capacity building workshop 12. Non tariff measures the concept of ntms is very broad, and includes a number of different measures, ranging from quantitative restrictions of all kinds, technical regulations, standards, sps measures, customs rules, etc. Nontariff measures affecting small and medium enterprises in the asiapacific region ramon l. International classification of nontariff measures, 2019 version. Non tariff measures in euus trade and investment v 16. Staiger stanford, wisconsin and nber january 2012 disclaimer. The trade effects of nontariff measures and services measures. Following multilateral and regional trade agreements, import tariffs on agricultural and food products have been declining globally. World trade organization nontariff measures and the wto. Trade in the 21st century faces fewer traditional tariffs, but has seen a proliferation of rules and regulations that affects the movement of goods and services.
Linda calabrese and andreas eberhardruiz november 2016 key messages the east african community eac has made decisive advances in the elimination of non tariff barriers ntbs affecting trade within the region. Second, the identified measures must be categorized to determine which measures are likely to have the more adverse effect on exports. Insights from a business survey in the european union x mar1666. Non tariff measures and their relationship to international standards chapter 3 asiapacific trade and investment report 2019 61 chapter 3 non tariff measures and their relationship to international standards the costs of complying with non tariff measures ntms in international trade are high as detailed in chapter 2. This paper was produced as part of the pronto productivity, nontariff measures and openness project funded by the european commission under the 7th framework programme.
Exporters have to comply with non tariff measures ntm including standards and other requirements in order to supply foreign markets. Ntms comprise all policy measures other than tariffs and tariff rate quotas that have a more or less direct impact on international trade. Bound tariffs are stored in the consolidated tariff schedules cts database. What types of non tariff barriers affect the east african. Most of non tariff measures ntms are now included in itip.
The online tariff is meant for all people who are trading goods with third party countries. The inclusion of additional non tariff measure issues for negotiation is an important element in the consultation outcomes in light of myriad nontariff barriers that have historically impeded market access in japan for u. Introduction and purpose during the last few decades, multilateral and regional trade negotiations and unilateral liberalization have substantially reduced tariff rates. This section discusses the trade effects of non tariff measures and services measures in general before focusing on technical barriers to trade tbt, sanitary and phytosanitary sps measures and domestic regulation in services. Available data do not show any clear increasing trend in the overall use of non tariff measures in the last decade.
Pdf nontariff measures, specific trade concerns and tariff. Assessing the impact of nontariff measures on imports. Key aspects of non tariff measures and economic development short courses for permanent missions in geneva organised by the division on technology and logistics friday, 17 march 2017 delivered by the division on international trade in goods and services, and commodities trade analysis branch. Non tariff measures, trade effects, trade agreements, deep integration 1 this paper will appear as chapter of the handbook of commercial policy edited by kyle bagwell and robert staiger. I ntms can be tradeenhancing if exporters are able to increase consumer awareness and bene t from a reduction in competition from non compliant rms. Chapter one discusses the newly revamped non tariff measure ntm classification system, the data collection effort so far, and the key characteristics of the data. Chapter 4 overview of sanitary and phytosanitary measures and technical barriers to trade in nepal 20 4. Itc working paper series impact of non tariff measures on smes in tunisia wp032016. The global trade slowdown and the public resistance against attempts to stimulate trade through megaregional trade deals are placing the role of non tariff measures ntms in the limelight of public discussions. With the reduction in tariff barriers, nontariff and behindtheborder measures ntm and btb have increased in importance. In this paper, we examine the question how different types of non tariff measures affected global trade during the period 19952014. Non tariff measures need not be non tariff barriers.
Minimise trade protection and compliance costs in dealing with non tariff measures ntms 1 accelerating work towards full elimination of non tariff barriers. Addressing nontariff barriers on regional trade in southern. Nontariff measures ntms are policy measures other than ordinary customs tariffs that can potentially have an economic effect on international trade in goods, changing quantities traded, or prices or both. International trade today has seen a decline in tariff rates as a result of multilateral and regional trade negotiations and growing importance in nontariff measures.
Clarete and epictetus patalinghug executive summary it is widely recognized that the participation of small and medium enterprises smes in global trade will significantly help realize the apecs goal of inclusive growth, job creation. The main purpose of the system is to provide accurate and updated data about the eu taric and national tariff and non tariff measures through the internet, 24 hours a day and 7 days a week. The invisible barriers to trade international trade centre. Economic and policy issues for developing countries iii foreword due to the proliferation of various nontariff rules and regulations affecting international trade, trade policy is becoming increasingly complex and multifaceted. Quantifying non tariff barriers to trade and investment 27 february 2016 this paper was produced as part of the pronto productivity, non tariff measures and openness project funded by the european commission under the 7th framework programme.