Impact of Sanitary and Phytosanitary Measures and Technical Barriers on International Trade

In principle, sanitary and phytosanitary (SPS) measures aim to protect the health of humans, plants and animals, while technical barriers to trade (TBT) ensure product quality and safety. However, governments may overshoot the requirements of health and consumer safety and use SPS and TBT to shield domestic producers from fair competition. Potential abuses of both measures as protectionist tools not only constrain international trade but also consumers’ welfare by restricting the choices of goods available to them. Our analysis shows that in general the measures seem to be positive for trade after controlling for other factors. However, the impacts are mainly driven by exports from advanced economies. Less developed countries do not gain as much when implementing the measures or are disadvantaged in exporting goods, particularly when importers are advanced economies. Within South countries, developing Asia are more adversely affected by SPS while non-Asian developing country exports are afflicted more by TBT. SPS in particular is damaging intraregional agricultural trade among Asian countries, which calls for policy makers to act more proactively in resolving nontariff hurdles in the region

Impact of Sanitary and Phytosanitary Measures and Technical Barriers on International Trade

In principle, sanitary and phytosanitary (SPS) measures aim to protect the health of humans, plants and animals, while technical barriers to trade (TBT) ensure product quality and safety. However, governments may overshoot the requirements of health and consumer safety and use SPS and TBT to shield domestic producers from fair competition. Potential abuses of both measures as protectionist tools not only constrain international trade but also consumers’ welfare by restricting the choices of goods available to them. Our analysis shows that in general the measures seem to be positive for trade after controlling for other factors. However, the impacts are mainly driven by exports from advanced economies. Less developed countries do not gain as much when implementing the measures or are disadvantaged in exporting goods, particularly when importers are advanced economies. Within South countries, developing Asia are more adversely affected by SPS while non-Asian developing country exports are afflicted more by TBT. SPS in particular is damaging intraregional agricultural trade among Asian countries, which calls for policy makers to act more proactively in resolving nontariff hurdles in the region

Nexus of Technology Adoption, E-commerce, and Global Value Chains: The Case of Asia

Existing literature has examined either the key drivers of global value chain (GVC) exports or the factors affecting e-commerce growth. Studies that investigate the impact of e-commerce, in particular business-to-consumer (B2C) e-commerce, on GVCs are largely missing. The growing prevalence of digital platforms centered around e-commerce marketplaces motivates this study to examine if e-commerce growth in an economy can affect its GVC exports and how information and communication technology infrastructure and technology adoption measures, payment systems, and delivery mechanisms can facilitate this growth. Panel ordinary least squares, feasible generalized least squares, and two-stage least squares estimations are used to determine the relationship between GVC exports and e-commerce sales. The results indicate empirical evidence of the positive impact of B2C e-commerce on GVC exports. The robust and positive impact of B2C e-commerce on GVC exports—when instrumented by secure internet servers, internet bandwidth, and digital payment schemes—suggests growth of B2C e-commerce in an economy can contribute to its GVC participation

Construyendo el futuro de la relación entre Asia y el Pacífico y América Latina y el Caribe

El comercio, la inversión y los vínculos financieros entre las regiones en desarrollo se están profundizando. El mejor ejemplo de esto es la relación actual entre Asia y el Pacífico y América Latina y el Caribe (ALC). A fin de aprovechar las enormes posibilidades para la cooperación interregional, decidimos llevar a cabo un estudio conjunto destinado a examinar posibles estrategias para reforzar esta relación, y afianzar la función catalizadora que desempeñan sus respectivos bancos regionales de desarrollo. En este documento se analizan los vínculos económicos existentes entre estas dos regiones de rápido crecimiento, así como también la forma de eliminar las barreras al comercio y a la inversión, y sustentar la cooperación Sur-Sur.