Reforming Non-Tariff Measures : From Evidence to Policy Advice / Olivier Cadot.

Format:

Book

Government document

Author/Creator:

Cadot, Olivier.

Contributor:

Cadot, Olivier.

Series:

World Bank e-Library.

Directions in Development

Language:

English

Subjects (All):

Non-tariff trade barriers.

Non-Tariff Measures.

Foreign trade regulation.

Physical Description:

1 online resource (120 pages)

Edition:

1st ed.

Place of Publication:

Washington, D.C. : The World Bank, 2018.

System Details:

data file

Summary:

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.

Contents:

Front Cover

Contents

Acknowledgments

About the Authors

Abbreviations

Overview

Chapter 1 Introduction

Note

References

Chapter 2 The Policy Case for Tackling Non-Tariff Measures

Trade as an Engine of Growth

High Trade Costs in Spite of Liberalization

Streamline, Not Eliminate: The Basic Welfare Economics of NTMs

Regional Efforts at Tackling NTMs

Making NTM Streamlining Part of Country-Level Competitiveness Agendas

Notes

Chapter 3 The Big Numbers: Do NTMs Matter?

How Prevalent Are NTMs? The Inventory Approach

How Stringent Are NTMs? Price-Based and Quantity-Based Methods for Calculating the Ad Valorem Equivalent of NTMs

How Do NTMs Differ? A Regulatory Distance Approach

Chapter 4 Which NTMs Matter for Household Expenditures, Poverty, and Firms' Competitiveness?

Non-Tariff Measures and Poverty

Firms' Access to Imported Inputs

Chapter 5 Getting to Policy Advice

Identifying and Flagging Problem Cases

Registration Requirements Hampering Entry and Competition in the Steel Sector in Indonesia

Export Registration Requirements and Mandatory Certificates of Origin Increase the Cost of Exports in Cambodia

Chapter 6 Conclusions

Appendix A Sources for Policy Data on NTMs

Appendix B Some Methods for Handicraft and Mass-Produced Handicraft Estimates of Tariff Equivalents

Appendix C Model to Estimate Trade Costs to Export

Appendix D Price Index of Products with and without Import Bans in Nigeria

Boxes

Box 2.1 Mexico's Experience with Regulatory Reform

Box 4.1 NTM Pass-Through to Domestic Prices

Box 5.1 Are the Results Driven by Compositional Effects?

Figures

Figure 2.1 Sample Means of Growth and Investment around the Date of Trade Liberalization.

Figure 2.2 Average Tariffs, by Country Income Level, 1980s-2000s

Figure 2.3 Transformation of Non-Tariff Barriers in the Middle East and North Africa Region, 2001 and 2011

Figure 2.4 Evolution of Gravity-Simulated Trade Costs, by Country Income Level, 1996-2009

Figure 2.5 Number of Non-Tariff Barriers Identified for Elimination in the East African Community Time-Bound Program, by Priority, 2008 and 2010

Figure 2.6 Workflow of Planned NTM Reviews in Cambodia

Figure 3.1 Frequency Index, Coverage Ratio, and Prevalence Score, by Country

Figure 3.2 Frequency Index, Coverage Ratio, and Pervasiveness Score, by Harmonized System Chapter and Region

Figure 3.3 Combined Ad Valorem Equivalents, by Sector

Figure 3.4 NTM Compliance Costs versus Market-Creating Effects

Figure 3.5 Estimated Equilibrium Changes, by Country

Figure 3.6 Bilateral Regulatory Distance for Manufactured Products and TBT Measures

Figure 3.7 Bilateral Regulatory Distance for Agri-Food Products and SPS Measures

Figure 3.8 Bilateral Regulatory Distance for Manufactured Products and TBT Measures

Figure 3.9 Patterns of Non-Tariff Measures: Distance from International Best Practices

Figure 3.10 Price Effect versus Regulatory Distance with Partners, by Country

Figure 4.1 Consumption-Weighted Ad Valorem Equivalent (AVE) for Sanitary and Phytosanitary (SPS) Measures Faced by Kenyan Households

Figure 5.1 Decomposition of the Variation in Unit Values across Products and Country Pairs

Figure 5.2 Distribution of Unit Value Residuals and Relative Position of Imported Steel Bars and Rods (Harmonized System 721310) in Indonesia

Figure 5.3 Relative Position of Imported Steel Bars and Rods (Harmonized System 721310) in the Distribution of Unit Value Residuals in Indonesia, by Origin.

Figure 5.4 Unit Value Residuals for Imported Steel Bars and Rods (Harmonized System 721310) in Indonesia, by Country of Origin

Figure 5.5 Licensing or Permit Requirements to Export in Select Countries: Coverage and Frequency Ratios

Figure 5.6 Number of Exporters and per Capita Income in Cambodia, 2009

Figure 5.7 Distribution of Export Value across Firms in Cambodia, 2009

Figure 5.8 Export Size, Concentration, and Survival Rate of Firms, by Country 2009

Figure 5.9 Estimated Probability to Export in Five Southeast Asian Countries, by Firm Size

Figure 5.10 Estimated Fixed Costs to Export in Five Southeast Asian Countries

Figure 5.11 Burdensome Internal NTMs Faced by Exporters in Cambodia, 2013

Figure 5.12 Effect of an Import Prohibition When the Domestic Market Structure Is Competitive

Figure 5.13 Effect of an Import Prohibition When the Domestic Market Structure Is a Monopoly

Figure 5.14 Price Levels in Nigeria, by Cluster and Region

Figure 5.15 Price Levels of Banned and Other Products in Nigeria, by Region

Figure 5.16 Gain in Real Income from the Elimination of Prohibitions in Nigeria, by Income Quartile

Figure 5.17 Gain in Real Income from the Elimination of Import Bans in Nigeria, by Income Quartile and Product Category

Figure 5.18 Gains in Real Income from the Elimination of Bans in Nigeria, by Region

Figure 5.19 Shift in the Distribution of Real Income Generated by the Elimination of Import Prohibitions in Nigeria

Figure 5.20 Consumer Price Index with and without the Elimination of Import Bans in Nigeria, 2008-11

Figure B.1 Prices along the Supply Chain

Tables

Table 3.1 Frequency Index, by Economic Sector

Table 3.2 External Occurrence of Nontrade Measures for Tunisian Exports

Table 3.3 Average Ad Valorem Equivalents for Non-Tariff Measures, by Type and Sector.

Table 3.4 Regression Results for Regulatory Distance and Regional Trade Agreements

Table 4.1 Frequency Ratios, by Non-Tariff Measure Chapter Level

Table 4.2 Coverage Ratio, by Non-Tariff Measure Chapter Level

Table 4.3 Leading Categories of Reported Non-Tariff Measures, by Coverage Ratio

Table B5.1.1 Size, Concentration, and Survival Rate of Export Firms in Cambodia

Table 5.1 Share of Exporters in Five Southeast Asian Countries, by Firm Size, 2009

Table 5.2 Median Size and Productivity of Exporters in Five Southeast Asian Countries

Table 5.3 Indicators of Trading across Borders in Five Southeast Asian Countries

Table 5.4 Products Subject to Import Bans in Nigeria

Table 5.5 Household Expenditure Patterns in Nigeria, by Region

Table 5.6 Household Expenditure Patterns in Nigeria, by Income Quartile

Table 5.7 Price-Gap Calculations for Lagos versus Nairobi

Table 5.8 Inflation Rates on Locally Produced, Imported, and Banned Products in Nigeria

Table 5.9 Effect of the Elimination of Prohibitions on the Price Index and Inflation in Nigeria, 2008-11

Table A.1 Countries Available in the United Nations Conference on Trade and Development Non-Tariff Measures Database as of 2014

Table C.1 Regression Results for the Expected Probability of Cambodia Firms to Export, by Firm Size

Table D.1 Price Index of Products with Import Bans in Nigeria, by Region

Table D.2 Price Index of Products with and without Import Bans in Lagos, Nigeria.

Notes:

Description based on print version record.

ISBN:

9781464811395

1464811393

Publisher Number:

10.1596/978-1-4648-1138-8