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Market access implications of non‐tariff measures: Estimates for four developed country markets

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  • Mike Webb
  • John Gibson
  • Anna Strutt

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.

Suggested Citation

  • Mike Webb & John Gibson & Anna Strutt, 2019. "Market access implications of non‐tariff measures: Estimates for four developed country markets," The World Economy, Wiley Blackwell, vol. 42(2), pages 376-395, February.
    • Handle: RePEc:bla:worlde:v:42:y:2019:i:2:p:376-395
    DOI: 10.1111/twec.12706
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    Cited by:

    1. Webb, Mike & Strutt, Anna & Gibson, John & Walmsley, Terrie, 2017. "Modelling the Impact of Non-Tariff Measures on Supply Chains in the Asia Pacific Region," Conference papers 332906, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Fabio Gaetano Santeramo & Emilia Lamonaca, 2022. "On the trade effects of bilateral SPS measures in developed and developing countries," The World Economy, Wiley Blackwell, vol. 45(10), pages 3109-3145, October.
    3. Mike Webb & Anna Strutt & John Gibson & Terrie Walmsley, 2020. "Modelling the impact of non‐tariff measures on supply chains in ASEAN," The World Economy, Wiley Blackwell, vol. 43(8), pages 2172-2198, August.
    4. Bryan Roberts & Fynnwin Prager & Charles Baschnagel & Adam Rose & Brett Shears, 2021. "The economic benefits of trade facilitation: U.S. Customs and Border Protection’s Centers of Excellence and Expertise programme," The World Economy, Wiley Blackwell, vol. 44(2), pages 346-366, February.
    5. Webb, Mike & Strutt, Anna & Walmsley, Terrie, 2019. "Regulatory harmonization in the ASEAN region: The effects of applying different types of non-tariff measures," Conference papers 333045, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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