Quantifying the trade effects of NTMs: A review of the empirical literature

Abstract. In recent years, the imposition of Non-Tariff Measures (NTMs) has increased rapidly both in quantity and importance. This development, with its considerable economic impact, particularly within the area of global trade, has prompted numerous scholars to explore the direction and magnitude of the trade effects of NTMs. Moreover, increased efforts are being placed on further exploring the determinants behind the use of NTMs, as well as their policy implications. The current paper aims to survey the empirical trade literature, in order to uncover the available responses to major questions regarding the trade effects of NTMs, principally of TBT and SPS measures. Among these questions posed are: (1) How do specific types of NTMs affect imports and exports? (2) Are developing countries more sensitive to NTMs? (3) Are small-medium sized firms more adversely affected by NTMs? (4) How are particular sectors/products affected by NTMs? And (5) Do Harmonization and Mutual Recognition necessarily impact trade positively?Keywords. Non-tariff measures, Technical barriers to trade, Sanitary and phytosanitary.JEL. F13, F14

How necessary? A comparison of legal and economic assessments under GATT dispute settlements, article XX(b), TBT 2.2 & SPS 5.6

This paper identifies the legal and economic assessments applied to resolve WTO disputes requiring an assessment of the contribution of the measure to the objective pursued, along with identifying any reasonably available alternatives. It focuses on disputes encompassing an interpretation of GATT Article XX (b), Sanitary and PhytoSanitary Agreement (SPS) Article 5.6 and the Technical Barriers to Trade (TBT) Agreement Article 2.2. This narrow focus is because the WTO DSB has opined that there are no significant differences between the tests developed under Art. XX(b) of the GATT 1994 and Art. 5.6 of the SPS Agreement, nor that any aspect of the Art. XX(b) jurisprudence relating to the interpretation of the term "necessary" would be inapplicable to Art. 2.2 of the TBT Agreement. This provides an opportunity to compare the legal and economic assessments applied in disputes falling under these provisions. This paper identifies no significant differences between the legal tests relating to the interpretation of the term "necessary". A WTO Panel is under no obligation to quantify the measure's contribution to the objective pursued and 'a risk may be evaluated either in quantitative or qualitative terms'. However, the same cannot be said for the economic assessments determining whether the necessity of the contribution of the contested measure. After setting out the legal tests, the paper identifies those economic assessments undertaken to resolve disputes involving these three different GATT/WTO provisions. The paper finds that quantitative economic models are rarely employed in WTO dispute cases. The lack of coherent guidelines for assessing the economic dimensions of a dispute in a transparent and robust manner potentially undermines the effectiveness and the reputation of WTO Dispute Settlement Body (DSB) recommendations

Tariffs and Non-Tariff Measures: Substitutes or Complements. A Cross Country Analysis

Alongside the global tariff liberalization, a growing body of evidence demonstrates the rise in the use of non-tariff measures (NTMs), which suggests a substitution effect between these two import policy instruments. Yet, detailed economic data reveals that in countries with lower tariff rates (developed countries), the use of NTMs is significantly lower compared to developing countries, which implies a possible complementary effect between tariffs and NTMs across nations. Using a dataset of Kee, Nicita and Olarreaga (2009) on ad valorem tariff equivalents of NTMs, at a very disaggregated product level, this paper explores the determinants of NTMs and their substitutability/complementarity relations with tariff barriers. While exploiting the country variation, it demonstrates the decreasing trend of substitutability between the two import policy instruments with the rise in economic development. In particular, a significant complementarity correlation exists between the two trade measures among the wealthiest nations, implying a stronger commitment to freer trade

Tariffs and Non-Tariff Measures: Substitutes or Complements. A Cross Country Analysis

Alongside the global tariff liberalization, a growing body of evidence demonstrates the rise in the use of non-tariff measures (NTMs), which suggests a substitution effect between these two import policy instruments. Yet, detailed economic data reveals that in countries with lower tariff rates (developed countries), the use of NTMs is significantly lower compared to developing countries, which implies a possible complementary effect between tariffs and NTMs across nations. Using a dataset of Kee, Nicita and Olarreaga (2009) on ad valorem tariff equivalents of NTMs, at a very disaggregated product level, this paper explores the determinants of NTMs and their substitutability/complementarity relations with tariff barriers. While exploiting the country variation, it demonstrates the decreasing trend of substitutability between the two import policy instruments with the rise in economic development. In particular, a significant complementarity correlation exists between the two trade measures among the wealthiest nations, implying a stronger commitment to freer trade

Quantifying the Trade Effects of NTMs: A Review of the Empirical Literature

In recent years, the imposition of Non-Tariff Measures (NTMs) has increased rapidly both in quantity and importance. This development, with its considerable economic impact, particularly within the area of global trade, has prompted numerous scholars to explore the direction and magnitude of the trade effects of NTMs. Moreover, increased efforts are being placed on further exploring the determinants behind the use of NTMs, as well as their policy implications. The current paper aims to survey the empirical trade literature, in order to uncover the available responses to major questions regarding the trade effects of NTMs, principally of TBT and SPS measures. Among the questions posed are: (1) How do specific types of NTMs affect imports and exports? (2) Are developing countries more sensitive to NTMs? (3) Are small-medium sized firms more adversely affected by NTMs? (4) How are particular sectors/products affected by NTMs? And, (5) Do Harmonization and Mutual Recognition necessarily impact trade positively

Quantifying the Trade Effects of NTMs: A Review of the Empirical Literature

In recent years, the imposition of Non-Tariff Measures (NTMs) has increased rapidly both in quantity and importance. This development, with its considerable economic impact, particularly within the area of global trade, has prompted numerous scholars to explore the direction and magnitude of the trade effects of NTMs. Moreover, increased efforts are being placed on further exploring the determinants behind the use of NTMs, as well as their policy implications. The current paper aims to survey the empirical trade literature, in order to uncover the available responses to major questions regarding the trade effects of NTMs, principally of TBT and SPS measures. Among the questions posed are: (1) How do specific types of NTMs affect imports and exports? (2) Are developing countries more sensitive to NTMs? (3) Are small-medium sized firms more adversely affected by NTMs? (4) How are particular sectors/products affected by NTMs? And, (5) Do Harmonization and Mutual Recognition necessarily impact trade positively

The Trade-Enhancing Effects of Non-Tariff Measures on Virgin Olive Oil

Over the last 15 years, the global trade of virgin olive oil (VOO) seems to face a stringent regulatory regime, mainly through the imposition of TBT and SPS measures. Such a development should have adversely impacted global levels of VOO trade. However, evidence shows that the world's imports of VOO have more than quadrupled in value since 2000. Alongside this trend, the share of VOO imports gradually shifts from traditional sources (mainly EU) to New World producing countries, such as Argentina, Australia, the USA, and Chile. By extracting data from hundreds of NTM regulations, as well as all possible registered bilateral trade flows between 2002 to 2014, this paper aims to empirically explore to what extent particular NTMs impact imports of VOO. The results indicate that while tariffs remain a stringent barrier, most NTMs have a positive impact on imports, rather than enhancing restrictiveness. The paper asserts that the majority of NTMs respond to consumers' demand for higher food safety standards and protection of human health, while increasing available information and transparency. That, in turn, leads to an expansion in the magnitude of imports of VOO products

The road to patient experience of care measurement: lessons from the United States

Patient-centered care has become an increasing priority in the United States and plays a prominent role in recent healthcare reforms. One way the country has managed to advance patient-centered care is through establishment of a family of national patient experience surveys (the Consumer Assessment of Healthcare Providers and Systems Plans (CAHPS). CAHPS is publicly reported for several types of providers and was recently tied to hospital reimbursement. This is part of a trend over the last two decades that has shifted provider-patient relationships from a traditional paternal approach to customer service and then to clinical partnership. The health care system in Israel, however, is still struggling to overcome barriers to change in this area. While community based biannual patient experience surveys are conducted by the Myers-JDC-Brookdale Institute, there is no comprehensive national approach to measuring the patient experience across a broad range of settings. Only recently did the Israeli Ministry of Health take its first steps to include patient experience as a dimension of health care quality. In its current position, Israel should learn from the U.S. experience with policies promoting patient-centered care, and specifically the impact on clinical services of measuring the patient experience. Looking at what has happened in the United States, we suggest three main lessons. First, there is a need for a set of national patient experience surveys that would be publicly reported and eventually tied to provider reimbursement. Secondly, the national survey tools should be customized to the unique characteristics of Israeli society and draw from recent research on patient-centeredness to include new and important domains such as patient activation and shared decision-making. Finally, newer technological approaches should be explored with the aim of increasing response rates and the timeliness and usefulness of the surveys