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401 result(s) for "NONTARIFF TRADE BARRIERS"
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Cooperation among Nations
In Cooperation among Nations, Joseph M. Grieco offers a provocative answer to a fundamental question in world politics: How does the anarchical nature of the international system inhibit the willingness of states to work together even when they share common interests? Grieco examines the capacity of two leading contemporary theories—modem political realism and the newest liberal institutionalism—to explain national responses to the non-tariff barrier codes negotiated during the Tokyo Round of international trade talks. According to his interpretation of realist theory, Grieco characterizes states as \"defensive positionalists.\" As such, they often fail to cooperate because they fear that a joint endeavor, while producing positive gains for all participants, might also generate disparities in gains among the partners involved. Grieco demonstrates that this realist concept of defensive state positionalism gives rise to a better understanding of the systemic constraints on international collaboration and of the impact of anarchy on states than is offered by neoliberal institutionalism. Drawing on previously unreported archival materials, Grieco rigorously applies the two theories to an empirical analysis of the cooperative efforts of the United States and the European Community during the 1980s to regulate and reduce non-tariff trade barriers through the General Agreement on Tariffs and Trade.
Measurement of nontariff barriers
As tariffs on imports of manufactures have been reduced as a result of multi-lateral trade negotiations, interest in the extent to which existing nontariff barriers may distort and restrict international trade is growing. Accurate and reliable measures are needed in order to address the issues involving the use and impacts of nontariff barriers. This study assesses currently available methods for quantifying such barriers and makes recommendations as to those methods that can be most effectively employed. The authors focus both on the conceptual issues arising in the measurement of the different types of nontariff barriers and on the applied research that has been carried out in studies prepared by country members of the OECD Pilot Group and others seeking to quantify the barriers. Nontariff barriers include quotas, variable levies, voluntary export restraints, government procurement regulations, domestic subsidies, and antidumping and countervailing duty measures. The authors discuss the many different methods available for measuring the effects of these and other nontariff barriers. Illustrative results are presented for industrial OECD countries, including Australia, Canada, Germany, Norway, the European Union, the United Kingdom, and the United States. Finally, the authors offer guideline principles and recommend procedures for measuring different types of nontariff barriers. Economists, political scientists, government officials, and lawyers involved in international trade will find this an invaluable resource for understanding and measuring NTBs. Alan V. Deardorff and Robert M. Stern are Professors of Economics and Public Policy, University of Michigan.
Quantifying the Effect of Non-Tariff Measures on Imports of Saudi Arabia Using a Panel ARDL Gravity Model
Saudi Arabia implements a wide range of non-tariff measures on imports and exports. Different research articles have quantified the effect of non-tariff measures on trade, but their effect on Saudi Arabia has not been quantified. The major objective of this paper is to quantify the effect of non-tariff measures on the imports of Saudi Arabia. Panel data from 2000 to 2022 for four major regions trading with Saudi Arabia are used to estimate the panel ARDL gravity model. The results of the bound test confirm the presence of a long-run association between the model variables. In the long-run, the per capita income of Saudi Arabia is the main determinant of imports. In contrast, in the short-run the per capita income has no influence, and the non-tariff measures have a negative effect on import value. At the cross-sectional level, the results confirm the negative effect of non-tariff measures on the selected trade partners with varying degrees. The results ascertain the detrimental effect of the application of technical and non-technical measures on Saudi Arabia’s imports. We recommend policymakers in Saudi Arabia adopt a more transparent policy of NTMs application that leads to a sustainable supply of goods and services and ensures sustainable trade.
Trade in Environmental Goods: Evidences from an Analysis Using Elasticities of Trade Costs
Negotiations on the liberalization of environmental goods (EGs) and services within the WTO Doha Round (mandated in November 2001) are facing specific challenges. Conflicting interests and differing perceptions of the benefits of increased trade in EGs were reflected in different approaches proposed for determining EGs. Using import data of 34 Organisation for Economic Co-operation and Development (OECD) member countries and from a sample of 167 countries, from 1995 to 2012, we discuss the trade effect of reducing barriers on EGs. We analyze the lists of EGs proposed by the Asia-Pacific Economic Cooperation and OECD using a Translog gravity model. We found that removing tariff barriers for EGs will have a modest impact because for the biggest importers and exporters, elasticities of trade costs are very low while for most trading relationships they are very high, making it difficult for exporters to maintain their markets. Overall, our results suggest that, because of their substantial effect on international trade, future negotiations on EGs should also address the issues of standards and nontariff barriers.
The trade effect of the EU's preference margins and non-tariff barriers
Nowadays, trade negotiations afford both liberalism- and protectionism-oriented policies. Indeed, in recent decades, the developed countries have been actively engaged in negotiating many preferential agreements to integrate developing countries (DCs) into world trade and encourage their economic growth, but many of these schemes contrast with the complex rules, often imposed on international markets, that still are an obstacle for exporters. Their presence and related costs reduce the importance of preferential trade agreements (PTAs) in increasing trade flows. This article attempts to assess the impact of preferential trade policies on trade flows controlling for different non-tariff barriers (NTBs), using a structural gravity model. The analysis uses disaggregated data, registered in the year 2017, on EU imports (defined at level HS-6 digit) from a large number of exporters (187 developed and developing countries) and also includes the intra-EU trade. Our results show robust and positive estimates for the impact of preferences on bilateral trade flows, however, higher non-tariff barriers are likely to play a role in reducing both the extensive margins of trade, and so tariff preferences alone are not sufficient to access international markets. The impact of NTBs on the intensive margin of trade is ambiguous; some measures may act as catalysts and therefore increase trade, and others may act as an additional cost of trade and thus hinder trade.
Free to Trade: Democracies, Autocracies, and International Trade
Relatively little research has focused on whether countries' political institutions affect their international trade relations. We address this issue by analyzing the relationship between regime type and trade policy. In a formal model of commercial policy, we establish that the ratification responsibility of the legislature in democratic states leads pairs of democracies to set trade barriers at a lower level than mixed country-pairs (composed of an autocracy and a democracy). We test this hypothesis by analyzing the effects of regime type on trade during the period from 1960 to 1990. The results of this analysis accord with our argument: Democratic pairs have had much more open trade relations than mixed pairs.
10-year experience with the Thai national LCI database: case study of “refinery products”
Purpose Due to various environmental pressures such as climate change and scarcity of natural resources, as well as nontariff barriers from trade partners, Thailand has established the Thai national life cycle inventory (LCI) database in 2006. In the 1st phase (2006–2007), three working groups were developed for natural gas, refinery, and petrochemical products. Another seven working groups were established in the 2nd phase (2007–2010) for ferrous and non-ferrous metals, utilities and transportation, construction materials, agricultural materials and products, basic chemicals, recycling and waste management, and others. In the 3rd phase (2010 to present), expansion of the number of data sets from the previous phases has been carried out. The purpose of this paper is to present the experiences on national database development in emerging countries with the example of Thailand on both strategic and technical levels using refinery products as the case study. Methods Data sets were developed according to ISO 14044:2006. The LCI data were managed and archived at the central facility known as the “central LCI database”. The Life Cycle Assessment lab (LCA lab) at MTEC, NSTDA, has been responsible for the central LCI database management. From 2008 to 2010, the “Thai national LCI database and its applications” project was granted a 3-year funding of over 50 million THB, and was operated under supervision of a steering committee set up by the Ministry of Industry (MoI). For this case study, to illustrate the development process, primary data of the refinery products were collected by Petroleum Institute of Thailand in the year 2005 from seven refineries covering more than 70 % of the production in the country. Attributional modelling has been used, with energy content as an allocation criterion. Results and discussion During the initial phase of the “Thai National LCI Database Development Project”, two key barriers have been faced. One was the lack of awareness from stakeholders as LCI and LCA were quite new tools for most people in Thailand. This problem was tackled by collaborating with the right strategic partners to drive the LCI national project and educating stakeholders with the training supports from Japan. The other hindrance was the lack of expertise of local experts on LCA. It took several years to continually build the capacity through seminars and workshops in Thailand and Japan, including “on the job training” on some pilot projects. As of May 2016, there were more than 700 data sets in the Thai national LCI database, considering only the data that MTEC acted as the project commissioner. However, only 515 data were certified as the national database. The other 211 data were qualified merely as the data from pilot projects. More details of the database list and how to access the data can be viewed in Thai language at the URL: http://www.thailcidatabase.net . Because the Thai national LCI data were mostly primary data from a core set of products for the Thai economy with a very high representativeness (>60 %) of the actual Thai productions, the data have been treated carefully. Only C-to-G data and G-to-G data from literature were allowed to disclose to Thai delegates with some signing agreements. However, G-to-G data from the actual Thai productions were sometimes provided, only with the signing confidentiality contracts. For refinery products, seven average data sets were established as national LCI data sets, i.e. liquefied petroleum gas, sulfur, gasoline, kerosene/jet oil, naphtha, fuel oil and diesel, with the year 2005 as the reference year. The data representativeness was very high covering more than 70 % of the production in Thailand. Due to the positive feedback and engagement from industries, several LCI projects have been started after this initial phase. The national LCI data sets have been used in various national applications and policies such as sustainable biofuels, government green public procurement, green GDP, Thai carbon footprint, etc. However, some relevant limitations of the Thai LCI database were listed as follows. Similar to most surveyed national LCI database worldwide, the climate change impact category has been chosen as the main focus for these data sets. Nevertheless, there is a more growing demand to use the data for other applications. As a result, more data sets that cover other impact categories will be required in the near future. Regarding the nomenclature and format, the Thai data sets were technically unique and not fully compatible with any other database. Conclusions The Thai national LCI database could be considered as the pioneer case for other countries in the South East Asia region. Thailand has further progressed in its LCI database development. Since 2009, the Thai national LCI database has been used as one of the key infrastructures of Thailand to support public policies and applications related to green growth. Many Thai stakeholders are well aware on LCI, LCA, and EcoDesign. Expertise of local experts has been increasingly improved. However, there are still more challenges to be faced to harvest the value of the Thai database in its full potential for better decision making in industry and policy, and for better positioning of Thai products on the global markets. From our experience, the following issues could be identified as “lessons learned”. At the onset of the project, it was crucial to get in expert advices from LCA-experienced countries to establish local expertise. Also, industry experts from abroad could help in clarifying the concept and addressing confidentiality concerns, as well as building awareness on LCA to Thai industries. Searching for some supporting programmes for capacity building, such as the GPP from Japan in our case, could provide great benefits to any emerging economies for national LCI initiatives. However, sustaining the trained human resources was also vital. Continual funding supports for LCI development and its applications were necessary to keep the momentum of active people in the field. Multiplying effect of the LCI knowledge to related organizations in the three main groups, i.e. government, academia, and industries, could help sustain the knowhow. Also, effective knowledge management through media such as books, guidelines, training courses, etc. would relief the turnover problem of trained staffs. Although it took a lot of time to develop local expertise, it was an essential step to have sufficient number of local experts to sustain the national database project. Moreover, a strong network of experts and researchers locally and internationally also strengthened the technical capacity to deal with any challenges during the project implementation. Furthermore, collaboration with the right strategic partners to drive the project was also very important in order to elevate it to the national level. It should be noted for any emerging economies aiming to initiate national LCI, the work plan for LCI database development (including the database management system) and its applications should be well balanced. Also, a well-designed database management system would enhance the database usage in the long run, especially when dealing with various impact categories like those in PEF.
Potential Exports and Nontariff Barriers to Trade
This publication identifies export products from Maldives that are affected by sanitary and phytosanitary measures and technical barriers to trade. The trade patterns of Maldives within South Asia, particularly with regard to Bangladesh, Bhutan, India, Nepal, and Sri Lanka, were examined and a gap analysis was conducted on relevant legal structures, institutional frameworks, and infrastructure. Specific trade-hindering nontariff measures applied to the potential export products are identified and prioritized recommendations to address them are also proposed.
Tariff Equivalent and Forgone Trade Effects of Prohibitive Technical Barriers to Trade
We derive a method to econometrically estimate the tariff equivalent and forgone trade effects of a prohibitive technical barrier to trade (TBT) based on Wales and Woodland’s Kuhn–Tucker approach to corner solutions in consumer choice. The method overcomes the lack of observed data on bilateral trade flows and accounts for differentiated goods by place of origin. We apply the derived random utility model to international trade in apples to identify the tariff equivalent of prohibitive phytosanitary barriers imposed by Australia on potential imports of New Zealand apples. We estimate the forgone apple trade between the two countries, the implied trade injury imposed by Australia on New Zealand, and the welfare loss to Australia. The removal of the Australian policy would induce net welfare gains around US$50 million annually for Australia.
Agriculture and international trade: law, policy and the WTO
The World Trade Organization (WTO) Agreement on Agriculture has had a fundamental impact on agricultural policy worldwide. The new WTO agreements will cover agriculture,sanitary and phytosanitary measures, technical barriers to trade and trade in intellectual property rights. This book addresses the interface between the law of international agricultural trade, the emerging legal and economic order for agricultural trade under the auspices of the WTO, and its impact on agricultural policy reform both in the European Union and the USA. With contributions from leading authorities in the appropriate areas.