IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v13y2024i1p1-d1551919.html
   My bibliography  Save this article

The Tariff Liberalisation Policy Nexus with Non-Tariff Measures: Panel Model Evidence in the SA–EU Fruit Products Trade

Author

Listed:
  • Chiedza L. Muchopa

    (Department of Agricultural Economics, University of Limpopo, Polokwane 0727, South Africa)

Abstract

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.

Suggested Citation

  • Chiedza L. Muchopa, 2024. "The Tariff Liberalisation Policy Nexus with Non-Tariff Measures: Panel Model Evidence in the SA–EU Fruit Products Trade," Economies, MDPI, vol. 13(1), pages 1-23, December.
    • Handle: RePEc:gam:jecomi:v:13:y:2024:i:1:p:1-:d:1551919
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/13/1/1/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7099/13/1/1/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jaime DE MELO & Ben SHEPHERD, 2018. "The Economics of Non-Tariff Measures: A Primer," Working Papers P212, FERDI.
    2. Ajewole, Kayode & Beckman, Jayson & Gerval, Adam & Johnson, William & Morgan, Stephan & Sabala, Ethan, 2022. "Do Free Trade Agreements Benefit Developing Countries? An Examination of U.S. Agreements," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, vol. 2022(Economic ), September.
    3. Jafari, Yaghoob & Britz, Wolfgang, 2018. "Modelling heterogeneous firms and non-tariff measures in free trade agreements using Computable General Equilibrium," Economic Modelling, Elsevier, vol. 73(C), pages 279-294.
    4. Luisa Kinzius & Alexander Sandkamp & Erdal Yalcin, 2019. "Trade protection and the role of non-tariff barriers," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(4), pages 603-643, November.
    5. Xiaowei Wen & Zhaohui Yang & Hui Dong & Xinqiang Fan & Yong Wang, 2018. "Barriers to Sustainable Food Trade: China’s Exports Food Rejected by the U.S. Food and Drug Administration 2011–2017," Sustainability, MDPI, vol. 10(6), pages 1-12, May.
    6. Chandan Kumar & Nalin Bharti, 2020. "Why NTM is a Challenge in Trade Relations? Evidence from India–Africa Agricultural Trade," Insight on Africa, , vol. 12(2), pages 79-103, July.
    7. Muhamad Rias K. V. Zainuddin & Tamat Sarmidi & Norlin Khalid, 2020. "Sustainable Production, Non-Tariff Measures, and Trade Performance in RCEP Countries," Sustainability, MDPI, vol. 12(23), pages 1-12, November.
    8. Ajewole, Kayode & Beckman, Jayson & Gerval, Adam & Johnson, William & Morgan, Stephen & Sabala, Ethan, 2022. "Do Free Trade Agreements Benefit Developing Countries? An Examination of U.S. Agreements," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, vol. 2022(Economic ), September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Beckman, Jayson & Ivanic, Maros & Shaik, Saleem, 2023. "How bilateral trade deals get in the way of multilateral agreements: Why WTO is marginalized," Journal of Policy Modeling, Elsevier, vol. 45(5), pages 877-894.
    2. Padilla, Samantha & Ufer, Danielle J. & Morgan, Stephen & Link, Noah, 2023. "U.S. Export Competitiveness in Select Crop Markets," USDA Miscellaneous 333553, United States Department of Agriculture.
    3. Mutanga, Albert & Tagwi, Aluwani Maiwashe & Chipfupa, Unity, 2023. "The EU-SACU Economic Partnership Agreement: Resultant Trends and Patterns an SADC Intra-Regional Agricultural Trade Flows," Journal of Agribusiness and Rural Development, University of Life Sciences, Poznan, Poland, vol. 68(2).
    4. Muhamad Rias K. V. Zainuddin & Tamat Sarmidi & Norlin Khalid, 2020. "Sustainable Production, Non-Tariff Measures, and Trade Performance in RCEP Countries," Sustainability, MDPI, vol. 12(23), pages 1-12, November.
    5. Jayson Beckman & Michael E. Johnson & Maros Ivanic, 2024. "Agriculture and AfCFTA: NTM reductions increase intra‐Africa trade," Agricultural Economics, International Association of Agricultural Economists, vol. 55(2), pages 200-222, March.
    6. Yvonne Wolfmayr & Elisabeth Christen & Hendrik Mahlkow & Birgit Meyer & Michael Pfaffermayr, 2024. "Trade and Welfare Effects of New Trade Policy Instruments," WIFO Studies, WIFO, number 70732.
    7. Gabriel Felbermayr & Hendrik Mahlkow & Alexander Sandkamp, 2023. "Cutting through the value chain: the long-run effects of decoupling the East from the West," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 50(1), pages 75-108, February.
    8. Dolabella, Marcelo, 2020. "Bilateral effects of non-tariff measures on international trade: Volume-based panel estimates," Comercio Internacional 46014, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    9. Anna Matzner & Birgit Meyer & Harald Oberhofer, 2023. "Trade in times of uncertainty," The World Economy, Wiley Blackwell, vol. 46(9), pages 2564-2597, September.
    10. Gründler, Klaus & Hillman, Arye L., 2021. "Ambiguous protection," European Journal of Political Economy, Elsevier, vol. 68(C).
    11. Claire Brunel & Thomas Zylkin, 2022. "Do cross‐border patents promote trade?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(1), pages 379-418, February.
    12. Yalcin Erdal, 2024. "Wandel durch Handel im neuen Systemwettbewerb – Zeit für eine Truman-Doktrin 2.0?," Wirtschaftsdienst, Sciendo, vol. 104(12), pages 833-837.
    13. Pompeo Della Posta, 2021. "An analysis of the current backlash of economic globalization in a model with heterogeneous agents," Metroeconomica, Wiley Blackwell, vol. 72(1), pages 101-120, February.
    14. Lewis C. King & Jeroen C. J. M. Bergh, 2021. "Potential carbon leakage under the Paris Agreement," Climatic Change, Springer, vol. 165(3), pages 1-19, April.
    15. Irfan Aleem & Bushra Faizi, 2021. "Non-tariff Measures, Overall Protection and Export Competitiveness: Evidence from Pakistan and Regional Countries," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 60(3), pages 251-282.
    16. Jaewon Jung, 2021. "Economic Transformation and Sustainable Development through Multilateral Free Trade Agreements," Sustainability, MDPI, vol. 13(5), pages 1-17, February.
    17. Alexander Sandkamp, 2022. "Reshoring by Decree? The Effects of Decoupling Europe from Global Value Chains," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 57(6), pages 359-362, November.
    18. Alexander Sandkamp & Erdal Yalcin, 2021. "Different antidumping legislations within the WTO: What can we learn from China's varying market economy status?," Review of International Economics, Wiley Blackwell, vol. 29(5), pages 1121-1147, November.
    19. Shilong Yang & Xiao Liang & Zhichao Lou & Yanwen Tan & Abdelrahman Ali, 2024. "Analysing the consequences of Regional Comprehensive Economic Partnership on the agricultural economies of China, Australia and New Zealand," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 70(7), pages 362-381.
    20. Andrea Boltho, 2024. "Changes in Revealed Comparative Advantage in Machinery and Equipment: Evidence for Emerging Markets," JRFM, MDPI, vol. 17(9), pages 1-13, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jecomi:v:13:y:2024:i:1:p:1-:d:1551919. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.