Global soybean trade - the geopolitics of a bean

Following a collaborative effort and with the support of The UK Research and Innovation Global Challenges Research Fund (UKRI GCRF), the Trade, Development and the Environment Hub -- or simply Trade Hub, https://tradehub.earth/ -- has recently launched the report “Global Soybean Trade – The Geopolitics of a Bean”. Originally cultivated as a traditional staple food in China, soybean today is of the most important global commodities in international trade. The report examines the economics of the ‘soybean miracle’, exploring its complex – and often controversial – implications for people and ecosystems, and analysing how different institutions and stakeholders are addressing the growing sustainability concerns. This publication not only provide a comprehensive review of the existing publications and data, but also highlights some of the open questions that need to be addressed by Trade Hub partners and other stakeholders in order to increase the sustainability of the soybean supply chain, both globally and locally

The dual trade impact of non-tariff measures: an empirical assessment of China’s pork imports

Theoretical arguments and empirical evidence suggest that non-tariff measures (NTMs) generate a mixture of trade effects. Using the maximum level of disaggregation provided by the UNCTAD NTMs database (four-digit), and focusing on those measures applied by China in its pork trade, a gravity equation is estimated with the poisson pseudo maximum likelihood estimator. Results confirm both restricting and promoting effects that higher levels of NTM aggregation mask. Compared to the average tariff applied by main importers (9 per cent) and China (14 per cent), the most restrictive NTMs are more stringent, with ad-valorem equivalents between 15 and 33 per cent. Simulations illustrate the upper bound bilateral trade gain from NTM removal and the resulting repercussions for China’s pork import shares

Regulatory patterns in international pork trade and similarity with the EU SPS/TBT standards

Aim of study: With the increasing protagonism of non-tariff measures (NTMs) in trade policy, better indexes are needed to depict the prevalence and similarity of NTMs across countries for further use in trade impact assessments.Area of study: Worldwide, with special focus on the European Union (EU)Material and methods: Using the TRAINS database on NTMs, we calculated and proposed some indicators, stressing both regulatory intensity and diversity, as well as similarity of regulatory patterns between trade partners. Our application focuses on pork trade and main importers, amongst which, the EU is singled out.Main results: We found a high level of heterogeneity in NTMs’ application, both, in the number and variety of measures. The bilateral similarity was relatively low, such as only 30% of sanitary and phytosanitary measures (SPS) and 20% of technical barriers to trade were shared, providing ground and incentive for discussing trade policy harmonization. Our analysis suggests that SPS regulations prevail in those sectors and countries more engaged in trade, while a negative correlation with tariffs raises protectionism concerns. Our bilateral indicators rank country pairs according to the similarity of their regulatory patterns. The EU, for instance, is closer in SPS regulations to China or USA than to Canada or New Zealand, which will require actions in the context of the bilateral trade agreements in course.Research highlights: The low similarity of regulatory patterns evidence the challenges faced by policy makers to streamline technical regulations. For an accurate representation of regulatory patterns and their impact on trade, both uni- and bilateral indicators need to be considered

Preliminary analysis of non-tariff measures (NTM) affecting spanish swine meat exports to China

El sector porcino lidera el consumo global en comparación con otras carnes y es la principal fuente de proteína en muchos países desarrollados y en desarrollo. La producción global ha alcanzado niveles record, así como el volumen de comercio internacional. Estimaciones realizadas por instituciones internacionales (ej. OECD, FAO USDA) sugieren una expansión en la producción, consumo y comercio internacional en el futuro. España juega un papel importante como exportador de carne de porcino y otros productos relacionados, en tanto que China es un importador clave y de gran dimensión, y como tal, un destino atractivo para los exportadores españoles. Actualmente, existen 26 empresas españolas con permiso para exportar carne de porcino y derivados a China. Para adquirir dicho permiso, las empresas tienen que cumplir estrictamente una serie de regulaciones, algunas de las cuales se definieron mediante un protocolo bilateral firmado entre ambos países en 2007. Tales regulaciones se engloban en lo que genéricamente se denominan Medidas No Arancelarias (MNAs) definidas como todas aquellas medidas políticas, diferentes a los aranceles, que pueden potencialmente afectar al comercio exterior, modificando los volúmenes, precios o ambos (UNCTAD, 2015). El objetivo de esta comunicación consiste en identificar y describir las MNAs impuestas por China, definidas a nivel de Línea Arancelaria Nacional (LAN), mediante un enfoque de inventario.Los autores agradecen financiación del proyecto INIA: RTA2015-00031-00-0 y del CIHEAM-IAMZPublishedNon-tariff measures (NTMs) have been raised as key issues impeding trade between countries and have replaced declining tariffs rates. Meats feature prominently in the discussions as they are heavily protected products. This study examines the current NTMs affecting Spanish swine meat exports to China and provides background on the market situation

Trade and Price effect of non-tariff measures in fruits trade

This paper uses two different approaches of the gravity model (value and price approach) in order to investigate the effects of non-tariff measures (NTMs) in international fruits trade. Through the value approach, we obtain information on the trade value impact of NTMs. Through the price approach, we derive directly the trade cost effect of these NTMs. The difference between both approaches allows understanding any market creating effect of NTMs.Publishe

Regulatory patterns in international pork trade and similarity with the EU SPS/TBT standards

Aim of study: With the increasing protagonism of non-tariff measures (NTMs) in trade policy, better indexes are needed to depict the prevalence and similarity of NTMs across countries for further use in trade impact assessments.Area of study: Worldwide, with special focus on the European Union (EU)Material and methods: Using the TRAINS database on NTMs, we calculated and proposed some indicators, stressing both regulatory intensity and diversity, as well as similarity of regulatory patterns between trade partners. Our application focuses on pork trade and main importers, amongst which, the EU is singled out.Main results: We found a high level of heterogeneity in NTMs’ application, both, in the number and variety of measures. The bilateral similarity was relatively low, such as only 30% of sanitary and phytosanitary measures (SPS) and 20% of technical barriers to trade were shared, providing ground and incentive for discussing trade policy harmonization. Our analysis suggests that SPS regulations prevail in those sectors and countries more engaged in trade, while a negative correlation with tariffs raises protectionism concerns. Our bilateral indicators rank country pairs according to the similarity of their regulatory patterns. The EU, for instance, is closer in SPS regulations to China or USA than to Canada or New Zealand, which will require actions in the context of the bilateral trade agreements in course.Research highlights: The low similarity of regulatory patterns evidence the challenges faced by policy makers to streamline technical regulations. For an accurate representation of regulatory patterns and their impact on trade, both uni- and bilateral indicators need to be considered.Publishe

Trade Value and Price Effect of Non-Tariff Measures in Fruits Trade

This paper uses two different approaches of the gravity model (trade value and price approach) in order to investigate the effects of non-tariff measures (NTMs) in international fruits trade. Through the trade value approach, we obtain information on the trade value impact of NTMs. Through the price approach, we derive directly the trade cost effect of these NTMs. There are two broad scenarios where NTMs either positively or negatively affect trade. The first one is seen when compliance with the NTMs provides security guarantees that encourage demand in importing markets to meet or exceed supplying costs, whereas the second scenario reflects the opposite, compliance costs are higher than demand for meeting the externality, thus decreasing supplies. We find positive advalorem equivalent (AVEs) ranging from 3% for technical measures to 7% for non-technical measures. We also find a negative AVE of -2% for category C (pre inspection measures) although this result is barely significant. The difference between estimated coefficients of both approaches allows developing qualitative information on the market creating effect of NTMs, evidencing that overall technical measures show a slight demand increasing effect in comparison to the stronger decreasing effect of non-technical measures

Non-tariff measures (NTM) affecting spanish swine meat exports to China

Spanish agrifood exports are viewed as an important engine promoting domestic economic growth. The meat sector and specifically swine meat outstands as one of the main exporting sectors, while meat exports to China have witnessed a significant increase since 2007. International trade is mostly affected by tariffs and non-tariff measures (NTMs). While tariffs are quite straightforward, NTMs are quite complex and there is a general perception that they are replacing tariffs as an alternative form of protectionism, and accordingly, are becoming increasingly relevant in trade negotiations. Our objective is to quantify the trade impact and calculate the ad-valorem equivalent (AVE) of the NTMs affecting Spanish swine meat exports to China. A gravity equation is estimated for this purpose using the Poisson Pseudo Maximum Likelihood (PPML) estimator. Our sample consists of a panel of 40 importers; 152 exporters; 18 HS6-digit products; and four years (2012-2015). The gravity equation is expanded to include, besides the usual economic, cultural and geographical explanatory variables, the frequency of NTMs. NTMs data comes from the Trade Analysis Information System (TRAINS) accessed through the World Integrated Trade Solutions (WITS) portal. We identify 19 NTM subcategories affecting Spanish swine meat exports to China: 16 SPS (Sanitary and Phytosanitary) and 3 TBT (Technical Barriers to Trade). Eight out of the nineteen NTMs categories are found to have a significant impact on trade, six of which have a trade restricting impact. In this sense, our results concur with the recent literature that posits both, a restricting and enhancing trade impact

El comercio internacional de productos cárnicos y la similitud con las normas técnicas y sanitarias de la UE

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Employing the unctad non-tariff measures database. Description across agri-food sectoers and selected regions, with a facus on EU trade partners

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