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Tariff Equivalent Of Technical Barriers To Trade With Imperfect Substitution And Trade Costs

In: Nontariff Measures and International Trade

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  • CHENGYAN YUE
  • JOHN BEGHIN
  • HELEN H. JENSEN

Abstract

The price-wedge method yields a tariff-equivalent estimate of technical barriers to trade (TBT). An extension of this method accounts for imperfect substitution between domestic and imported goods and incorporates recent findings on trade costs. We explore the sensitivity of this revamped TBT estimate to its key determinants (substitution elasticity, preference for home good, and trade cost). We use the augmented approach to investigate the recent Japan-U.S. apple trade dispute and find that removing the Japanese TBT would yield limited export gains to the United States. We then draw policy implications of our findings.

Suggested Citation

  • Chengyan Yue & John Beghin & Helen H. Jensen, 2017. "Tariff Equivalent Of Technical Barriers To Trade With Imperfect Substitution And Trade Costs," World Scientific Book Chapters, in: John Christopher Beghin (ed.), Nontariff Measures and International Trade, chapter 9, pages 151-164, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789813144415_0009
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    2. Josling, Timothy E. & Roberts, Donna & Orden, David, 2004. "Food Regulation And Trade: Toward A Safe And Open Global System -- An Overview And Synopsis," 2004 Annual meeting, August 1-4, Denver, CO 20008, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    More about this item

    Keywords

    Nontariff Measures; Standards; Barrier; NTM; NTB; Technical Barrier; TBT; International Trade; Phytosanitary; SPS; Maximum Residue Limits; MRL; Food Trade;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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