Are non-tariff measures a substitute for tariffs in agricultural trade? Recent evidence from southern Mediterranean countries

[EN] The significance of and interest in non-tariff measures (NTMs) have increased as a consequence of the reduction in agricultural tariffs. This paper analyses the relationship between NTMs and tariffs in southern Mediterranean countries (SMCs) through two complementary analyses. First, the authors construct a taxonomy of protection for products, distinguishing between high protection, transparent protection, low protection and disguised protection. The low protection category is most widely represented, and the disguised protection category is also important. Second, the policy substitution hypothesis between tariff and non-tariff protection is tested. This hypothesis appears in the literature as the possibility that countries implement NTMs for protection purposes, as a result of the progressive reduction in the tariffs levied. Policy substitution is found in some SMCs, which is consistent with an upward trend of non-tariff protection as tariff liberalization progresses in the region.The authors are grateful for support from the European Commission through FP7 'Sustainable agri-food systems and rural development in the Mediterranean Partner Countries' (SUSTAINMED, FP7-KBBE-2009-3-245233), and from the Universitat Politecnica de Valencia (PAID-06-12).Tudela Marco, L.; García Alvarez-Coque, JM.; Martinez Gómez, VD. (2014). Are non-tariff measures a substitute for tariffs in agricultural trade? Recent evidence from southern Mediterranean countries. Outlook On Agriculture. 43(4):235-240. https://doi.org/10.5367/oa.2014.0187S23524043

Orbital Observations of Dust Lofted by Daytime Convective Turbulence

Over the past several decades, orbital observations of lofted dust have revealed the importance of mineral aerosols as a climate forcing mechanism on both Earth and Mars. Increasingly detailed and diverse data sets have provided an ever-improving understanding of dust sources, transport pathways, and sinks on both planets, but the role of dust in modulating atmospheric processes is complex and not always well understood. We present a review of orbital observations of entrained dust on Earth and Mars, particularly that produced by the dust-laden structures produced by daytime convective turbulence called “dust devils”. On Earth, dust devils are thought to contribute only a small fraction of the atmospheric dust budget; accordingly, there are not yet any published accounts of their occurrence from orbit. In contrast, dust devils on Mars are thought to account for several tens of percent of the planet’s atmospheric dust budget; the literature regarding martian dust devils is quite rich. Because terrestrial dust devils may temporarily contribute significantly to local dust loading and lowered air quality, we suggest that martian dust devil studies may inform future studies of convectively-lofted dust on Earth

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. Copyright 2009, Oxford University Press.

TRADE OPENNESS: AN AUSTRALIAN PERSPECTIVE

Australia's external trade is relatively low compared with the size of its economy. Indeed, Australia's openness ratio (exports plus imports as a proportion of GDP) in 2002 was the third-lowest among the 30�OECD countries. This paper seeks to understand Australia's low openness by analysing the empirical determinants of aggregate country trade. We present an equation for country openness which explains a substantial amount of the cross-country variation. The most important explanators of openness are population and a measure of distance to potential trade partners. Countries with larger populations trade less, as do countries that are relatively more remote. Furthermore, after controlling for trade policy there is little evidence of a positive correlation between openness and economic development. The openness equation suggests that Australia's level of trade is relatively close to what would be expected. The most important factors in explaining Australia's low openness ratio are its large geographic size and distance to the rest of the world. Copyright 2006 The Authors Journal compilation 2006 Blackwell Publishing Ltd/University of Adelaide and Flinders University.

The Institutional Determinants of Bilateral Trade Patterns

This paper studies the effect of institutions on trade flows, using a gravity model approach. Standard gravity equations incorporate factors such as geographical proximity, language, trade policy and common history as explanatory factors for variation in bilateral trade that reflect the costs of trade across geographical and cultural distance. We extend this type of analysis by focusing on the relevance of the quality of governance and the extent of familiarity with the resulting framework of rules and norms in explaining variation in bilateral trade patterns. More specifically, we test whether institutional homogeneity and institutional quality have an independent impact on the trade volume between pairs of countries. We find that having a similar institutional framework promotes bilateral trade by 13%, on average. Furthermore, a better quality of formal institutions tends to coincide with more trade. Depending on being either importer or exporter, an increase in overall institutional quality of one standard deviation from the mean leads to an estimated increase of 30-44% in bilateral trade. Copyright WWZ and Helbing & Lichtenhahn Verlag AG 2004.

Tariff Equivalent of Technical Barriers to Trade with Imperfect Substitution and Trade Costs

The price-wedge method yields a tariff-equivalent estimate of technical barriers to trade (TBT). An extension of this method accounts for imperfect substitution between domestic and imported goods and incorporates recent findings on trade costs. We explore the sensitivity of this revamped TBT estimate to its key determinants (substitution elasticity, preference for home good, and trade cost). We use the augmented approach to investigate the recent Japan–U.S. apple trade dispute and find that removing the Japanese TBT would yield limited export gains to the United States. We then draw policy implications of our findings. Copyright 2006, Oxford University Press.