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Reforming Non-Tariff Measures

Author

Listed:
  • Olivier Cadot
  • Michael J. Ferrantino
  • Julien Gourdon
  • José-Daniel Reyes

Abstract

High levels of trade costs persist in the world trading system, despite recent progress in tariff reduction, trade facilitation, and logistics. At least some of these costs can be attributed to non-tariff measures (NTMs), policies imposed by governments other than ordinary customs duties which have an impact on the price at which exports and imports are traded, the quantities traded, or both. Such costs are particularly worrisome if they have a discriminatory or protectionist effect, or violate countries’ international commitments. However, even NTMs designed to carry out domestic regulatory objectives – for example, protection of human, animal or plant health, consumer or workplace safety, or the environment – can have substantial effects on international trade, which should be considered when such policies are developed. This book discusses some of the analytical methods that can be used to accompany the process of policy development for NTMs. It discusses the broad economic rationale for improving the design of NTMs;, illustrates the main forms of quantification of NTMs and their effects, including inventory approaches, price-based approaches, and quantity-based approaches; proposes a new analytical and measurable concept of “regulatory distance” to help guide deep integration efforts at the regional level; provides a discussion of the effects of NTMs on household expenditures, poverty, and firm competitiveness; and shows how empirical analysis of NTMs can be used to inform policy advice. As such, it should provide a valuable addition to the arsenal of tools available for applied analysis of international trade policy.

Suggested Citation

  • Olivier Cadot & Michael J. Ferrantino & Julien Gourdon & José-Daniel Reyes, 2018. "Reforming Non-Tariff Measures," World Bank Publications - Books, The World Bank Group, number 28879.
  • Handle: RePEc:wbk:wbpubs:28879
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    References listed on IDEAS

    as
    1. Linkins, Linda A. & Arce, Hugh M., 2002. "Estimating Tariff Equivalents of Nontariff Barriers," Working Papers 15855, United States International Trade Commission, Office of Economics.
    2. Michael J. Ferrantino, 2006. "Quantifying the Trade and Economic Effects of Non-Tariff Measures," OECD Trade Policy Papers 28, OECD Publishing.
    3. Ederington,Josh & Ruta,Michele, 2016. "Non-tariff measures and the world trading system," Policy Research Working Paper Series 7661, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. 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).
    2. Ana Sanjuan Lopez & Marie-Luise Rau & Geert Woltjer, 2019. "Exploring alternative approaches to estimate the impact of non-tariff measures and further implementation in simulation models," JRC Research Reports JRC113883, Joint Research Centre.
    3. Monica Hernandez, 2019. "The Rising Importance of Non-tariff Measures and their use in Free Trade Agreements Impact Assessments," GDAE Working Papers 19-03, GDAE, Tufts University.

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