Non‐Tariff Measures, Specific Trade Concerns and Tariff Reduction

29 Pages Posted: 13 Sep 2017

See all articles by Gianluca Orefice

Gianluca Orefice

Centre d'Etudes Prospectives et d'Info. Internationales (CEPII)

Date Written: September 2017

Abstract

This paper studies the determinants of the recent proliferation of Specific Trade Concerns raised at the WTO on non‐tariff trade measures (NTMs), with a focus on sanitary and phytosanitary (SPS) and technical barriers to trade (TBTs). Even though NTMs are imposed de jure to protect consumers from unhealthy products, they increase trade costs de facto. So, when tariff protection lowers, NTMs become effective barriers to trade and the exporting countries can complain at the dedicated committee at the WTO (STCs). Therefore, we study whether STCs are raised by exporting countries as a consequence of tariff reductions in importing countries, that is when non‐tariff measures become barriers to trade. Using a recent database on STCs over the period 1996–2010, we find empirical evidence that SPS and TBT concerns are raised by exporting country as a consequence of importer's tariff cut.

Suggested Citation

Orefice, Gianluca, Non‐Tariff Measures, Specific Trade Concerns and Tariff Reduction (September 2017). The World Economy, Vol. 40, Issue 9, pp. 1807-1835, 2017, Available at SSRN: https://ssrn.com/abstract=3036153 or http://dx.doi.org/10.1111/twec.12447

Gianluca Orefice (Contact Author)

Centre d'Etudes Prospectives et d'Info. Internationales (CEPII) ( email )

9 rue Georges Pitard
Paris Cedex 15, F-75015
France

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