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Analysis on the effects of TBT on Vietnamese agricultural exports

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  • Phan Hoang Minh Tuan

Abstract

With the trade liberalization, the traditional tariff barriers and other non-tariff barriers have become less and less gradually. However, technical trade barriers have turned into the significant obstacle in the trade development among nations. Due to difference of economy development and technical level, developing countries have much difficulty meeting standard of developed countries, thus, technical trade barriers have been used as the tool of trade protection by developed countries. Vietnamese exports of agricultural products account for a larger proportion of domestic GDP, in export trade, agricultural products are playing an increasingly important role. However, since 2007 years the accession to WTO, when Vietnam enjoys the MFN status, agriculture is facing an unprecedented challenge. It is obvious that Vietnamese exports of agricultural products suffer from foreign technical tariff barriers. By establishing a series of strict standards, major countries and regions restrict the import of agricultural products from Vietnam for the sake of consumers, and health of human being, ecological environment, and unqualified agricultural products of Vietnam. This paper makes a brief introduction of concept, feature and mechanism of action of technical trade barriers; secondly, it makes further analysis that status quo and analysis of causes of technical trade barriers Vietnam’s agricultural products suffer. Through gravity model to measure the impact of the number of agricultural products residue limits on aquatic trade and the cross-sectional data of Vietnam’s aquatic exports in European Union, the United states and Japan during the 12 years 1998-2010 to measure the impact of TBT to agricultural exports. The effect resulting from Vietnam’s implementation of pollution-free products promotes export. Lastly, this paper puts forward solutions to breaking through foreign technical tariff barriers so as to reduce loss of export trade of agricultural products.

Suggested Citation

  • Phan Hoang Minh Tuan, 2015. "Analysis on the effects of TBT on Vietnamese agricultural exports," International Journal of Financial Economics, Research Academy of Social Sciences, vol. 4(1), pages 32-44.
    • Handle: RePEc:rss:jnljfe:v4i1p4
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