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The trade effect of non-tariff measures in a high-quality trade agreement

Author

Listed:
  • Hayakawa, Kazunobu
  • Jongwanich, Juthathip
  • Kohpaiboon, Archanun

Abstract

The aim of this study is to quantify the trade effects of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which is considered to be a high-quality trade agreeme nt. To this end, we estimate the gravity equation for worldwide trade and introduce applied tariffs i nto this equation to differentiate between the trade effects of tariff reduction and non-tariff measur e (NTM) changes. Our gravity equation results indicate that the trade effect of NTM changes under t he CPTPP is insignificant on average and negative for most products. We also estimate the gravity equatio n for foreign direct investment (FDI) and find some evidence that the CPTPP increased FDI by a statistic ally significant amount. Thus, the NTM changes in the CPTPP may increase FDI, rather than trade, a mong member countries.

Suggested Citation

  • Hayakawa, Kazunobu & Jongwanich, Juthathip & Kohpaiboon, Archanun, 2022. "The trade effect of non-tariff measures in a high-quality trade agreement," IDE Discussion Papers 871, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper871
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    More about this item

    Keywords

    CPTPP; Trade; Non-tariff measures;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations

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