IDEAS home Printed from https://ideas.repec.org/a/sae/fortra/v56y2021i1p117-135.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0015732520961309
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0015732520961309?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. André C Jordaan, 2017. "Impact of Non-Tariff Measures on Trade in Mauritius," Foreign Trade Review, , vol. 52(3), pages 185-199, August.
    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. Akin-Olagunju, O. & Yusuf, S. & Okoruwa, V., 2018. "Harmonization of Sanitary and Phytosanitary Standards in Cocoa Trade: How Competitive are the Major Exporting Countries?," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277463, International Association of Agricultural Economists.
    2. Pham Hoang Linh & Nguyen Khanh Doanh & Nguyen Ngoc Quynh, 2019. "Determinants of Vietnam`s potential trade: a case study of agricultural exports to the European Union," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 9(1), pages 33-46, June.
    3. Doan Thi Thanh Ha & Hongyong Zhang, 2022. "Technical Barriers to Trade, Product Quality and Trade Margins: Firm-level Evidence," Working Papers DP-2021-54, Economic Research Institute for ASEAN and East Asia (ERIA).
    4. Linh, Pham Hoang & Doanh, Nguyen Khanh & Quynh, Nguyen Ngoc, 2019. "Determinants of Vietnam's Potential Trade: A Case Study of Agricultural Exports to the European Union," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 9(01), January.
    5. Hea‐Jung Hyun & Yong Joon Jang, 2022. "Technical regulation and trade: Export quality matters," The World Economy, Wiley Blackwell, vol. 45(5), pages 1447-1476, May.
    6. Upalat Korwatanasakul & Youngmin Baek, 2021. "The Effect of Non-Tariff Measures on Global Value Chain Participation," Global Economic Review, Taylor & Francis Journals, vol. 50(3), pages 193-212, July.
    7. John C. Beghin & Bo Xiong, 2016. "Economic Effects of Standard-Like Nontariff Measures: Analytical and Methodological Dimensions," Center for Agricultural and Rural Development (CARD) Publications 16-wp569, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    8. Kareem, Olayinka Idowu, 2022. "Fruit safety regulations in the transatlantic region: How are Africa’s exports faring with the regulations?," Journal of Policy Modeling, Elsevier, vol. 44(5), pages 886-902.
    9. Dang Hai Luu & Craig R. Parsons, 2022. "Non‐tariff measures and Vietnam's export performance," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 36(1), pages 88-104, May.
    10. Sung Ju Cho & Saera Oh & Sang Hyeon Lee, 2020. "The Impact of Structure Similarity of Nontariff Measures on Agricultural Trade," Sustainability, MDPI, vol. 12(24), pages 1-13, December.
    11. Daragh Clancy & Donal Smith & Vilém Valenta, 2024. "The Macroeconomic Effects of Global Supply Chain Reorientation," International Journal of Central Banking, International Journal of Central Banking, vol. 20(2), pages 151-191, April.
    12. Shekar Bose & Amina Marhoon Rashid Al Naabi & Houcine Boughanmi & Jaynab Begum Yousuf, 2019. "Domestic Ban Versus Border Rejections: A Case of Oman’s Fish Exports to the EU," SAGE Open, , vol. 9(1), pages 21582440188, January.
    13. Eyal RONEN, 2017. "Quantifying the trade effects of NTMs: A review of the empirical literature," Journal of Economics and Political Economy, KSP Journals, vol. 4(3), pages 263-274, September.
    14. Susanne Fricke & Lodovico Muratori, 2017. "Spatial price transmission and trade policies: new evidence for agricultural products from selected sub-Saharan African countries with high frequency data," Working Papers 5/17, Sapienza University of Rome, DISS.
    15. Mkuna, Eliaza, 2014. "East Africa Community (EAC) Non Tariff Barriers and their Effects on Tanzanian Small and Medium Agro Enterprises Cross Border Trade," Research Theses 243444, Collaborative Masters Program in Agricultural and Applied Economics.
    16. Timini, Jacopo & Conesa, Marina, 2019. "Chinese Exports and Non-Tariff Measures: Testing for Heterogeneous Effects at the Product Level," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 34(2), pages 327-345.
    17. Sudeshna Chattopadhyay, 2019. "Index of Non-tariff Measures: A Study of the EU Textile and Garment Market," Foreign Trade Review, , vol. 54(3), pages 206-223, August.
    18. 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.
    19. Giorgio Barba Navaretti & Giulia Felice & Emanuele Forlani & Paolo Garella, 2018. "Non-tariff measures and competitiveness," Development Working Papers 438, Centro Studi Luca d'Agliano, University of Milano, revised 01 Feb 2023.
    20. Vural, Burçak Müge & Akgüngör, E. Sedef, 2019. "Quantifying the Trade and Welfare Effects of EU Aflatoxin Regulations on the Dried Fruit Industry," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 68(2), June.

    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

    Statistics

    Access and download statistics

    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:sae:fortra:v:56:y:2021:i:1:p:117-135. 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: SAGE Publications (email available below). General contact details of provider: .

    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.