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Post-SAFTA NTMs for Agricultural Trade: Revelations from the India–South Asia Approach

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  • Chandan Kumar
  • Nalin Bharti

Abstract

Commitment of South Asian Free Trade Agreement (SAFTA) from South Asian Preferential Trading Agreement (SAPTA) for trade liberalisation was one of the hopes in South Asia. This article highlights untapped trade potential in agro-trade between India and its trading partners in South Asia through Trade Potential Index (TPI). This article evaluates post-SAFTA effects of non-tariff measures (NTMs) on agro-products (HS 6-digit level) over the period 2004–2016. After 2004, many agro-products of South Asia have suffered trade restrictions which create challenges over SAFTA implementation. This article inquires whether NTMs in post-SAFTA has been trade creating or trade inhibiting in agro-trade for member countries as per the earlier commitments. Research methodology for this study includes qualitative and quantitative approach. Qualitative approach examines agri-trade constraints faced between India and rest seven South Asian countries and vice versa. Quantitative analysis explores prevailing trade barriers in selected agro-products during 2002–2016 applying Regional Trade Barrier Index and NTM Coverage Ratio. Results establish the presence of agri-trade barriers from South Asian countries against India as well as India’s barriers against rest seven countries of South Asia. Study concludes that agri-trade restrictions prevail in South Asia despite SAFTA which shows the slow process of trade liberalisation. JEL Codes: F13, F14, Q17

Suggested Citation

  • Chandan Kumar & Nalin Bharti, 2021. "Post-SAFTA NTMs for Agricultural Trade: Revelations from the India–South Asia Approach," Foreign Trade Review, , vol. 56(1), pages 117-135, February.
    • Handle: RePEc:sae:fortra:v:56:y:2021:i:1:p:117-135
    DOI: 10.1177/0015732520961309
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    References listed on IDEAS

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    1. André C Jordaan, 2017. "Impact of Non-Tariff Measures on Trade in Mauritius," Foreign Trade Review, , vol. 52(3), pages 185-199, August.
    2. Marco Fugazza, 2013. "The Economics Behind Non-Tariff Measures: Theoretical Insights And Empirical Evidence," UNCTAD Blue Series Papers 57, United Nations Conference on Trade and Development.
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    More about this item

    Keywords

    Non-tariff measures; trade potential; South Asia; RTB index;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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