Market Access Implications of Non‐Tariff Measures: Estimates for Four Developed Country Markets

20 Pages Posted: 12 Feb 2019

See all articles by Mike Webb

Mike Webb

University of Waikato - Department of Economics and Finance

John Gibson

University of Waikato; Motu Economic and Public Policy Research

Anna Strutt

University of Waikato

Date Written: February 2019

Abstract

We quantify the effects of non‐tariff measures on the extensive margin of trade, examining the number of countries exporting particular products to Canada, the European Union, New Zealand and the United States. We find that non‐tariff measures that impose a conformity requirement, that is, testing, certification or inspection, will reduce the number of countries exporting to these markets. Conformity requirements imposed for sanitary or phytosanitary reasons have the largest effect in Canada, reducing the number of exporting countries by 47% compared to the situation where no compliance requirement is imposed. Conformity requirements imposed for other reasons covered by the WTO Agreement on Technical Barriers to Trade have the largest effect in Canada and New Zealand, reducing the number of exporting countries by 27% compared to the situation where no compliance requirement is imposed. However, we generally find a statistically significant positive effect for nontariff measures that do not impose a compliance burden, suggesting that such measures may facilitate trade.

Keywords: extensive margin, international trade, non‐tariff measures

Suggested Citation

Webb, Mike and Gibson, John and Strutt, Anna, Market Access Implications of Non‐Tariff Measures: Estimates for Four Developed Country Markets (February 2019). The World Economy, Vol. 42, Issue 2, pp. 376-395, 2019, Available at SSRN: https://ssrn.com/abstract=3332607 or http://dx.doi.org/10.1111/twec.12706

Mike Webb (Contact Author)

University of Waikato - Department of Economics and Finance

Private Bag 3105
Hamilton, 3105
New Zealand

John Gibson

University of Waikato ( email )

Te Raupapa
Private Bag 3105
Hamilton, 3240
New Zealand

Motu Economic and Public Policy Research

19 Milne Terrace
Island Bay
Wellington, 6002
New Zealand

Anna Strutt

University of Waikato ( email )

Te Raupapa
Private Bag 3105
Hamilton, 3240
New Zealand

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