The Quantification and Impact of Non-Tariff Measures: Why Do NTMs Proliferate and What are the Consequences?

6 Pages Posted: 18 Aug 2010

See all articles by Dan Ciuriak

Dan Ciuriak

Ciuriak Consulting Inc.; Centre for International Governance Innovation (CIGI); C.D. Howe Institute; Asia Pacific Foundation of Canada; BKP Development Research & Consulting GmbH

Date Written: June 1, 2003

Abstract

At a time of unprecedented growth in trade fueled in part by a wave of trade liberalization, there has been a strong counter-current in terms of growth in non-tariff measures (NTMs) that tend to restrict trade. This short note takes up two questions: Why have NTMs proliferated and what are the policy consequences of this proliferation? It identifies three major factors contributing to the proliferation: selective protectionism in the face of mounting import pressures due to tariff liberalization, which creates concerns as it represents the replacement of efficient (tariff) protection with inefficient forms; growing concerns in areas such as health and the environment which (legitimately) collide with trade interests and thus raise important trade-offs; and large and prolonged exchange rate disequilibria which make the welfare effects of NTMs indeterminate. The paper also explores the implications for adjustment of trade imbalances and domestic competition of NTM proliferation, given their tendency to dampen price elasticities. Given the very different implications of NTMs, depending on the nature of the motivating factor, and their potentially pervasive effects, the paper argues for improved understanding of NTMs.

Keywords: trade, non-tariff measures

JEL Classification: F13

Suggested Citation

Ciuriak, Dan, The Quantification and Impact of Non-Tariff Measures: Why Do NTMs Proliferate and What are the Consequences? (June 1, 2003). Available at SSRN: https://ssrn.com/abstract=1660165 or http://dx.doi.org/10.2139/ssrn.1660165

Dan Ciuriak (Contact Author)

Ciuriak Consulting Inc. ( email )

83 Stewart St.
Ottawa, Ontario K1N 6H9
Canada

Centre for International Governance Innovation (CIGI) ( email )

57 Erb Street West
Waterloo, Ontario N2L 6C2
Canada

C.D. Howe Institute ( email )

67 Yonge St., Suite 300
Toronto, Ontario M5E 1J8
Canada

Asia Pacific Foundation of Canada ( email )

Canada

HOME PAGE: http://ciuriakconsulting.com/

BKP Development Research & Consulting GmbH ( email )

Romanstrasse 74
M√ľnchen, 80639
Germany

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