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The Effects of Non-Tariff Measures on Agro-Food Trade: Heterogeneity of Seven Measures and their Effects on Agro-Food Sectors

Author

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  • Inoue, Yutaro
  • Saito, Katsuhiro
  • Kawasaki, Kentaro

Abstract

This study examines the effects of Non-Tariff Measures (NTMs) on global agro-food trade by analyzing seven different NTMs and their interactions. We estimated structural gravity models with the Poisson Pseudo Maximum Likelihood estimator. The results indicate that NTMs generally restrict agro-food trade, reducing it by approximately 28.6% compared to a no-NTM scenario. Two NTMs show larger negative trade effects than SPS and TBT, the commonest measures in agro-food trade. Additionally, the negative impacts of NTMs vary by sector; animal-based product trade may be restricted due to food safety concerns, whereas plant-based product trade seems to be reduced by protectionist measures. On the contrary, NTMs may have positive effects in some sectors by correcting market failures, reducing transaction costs, and aligning with the importing countries’ economic or industrial strategies. Policymakers should balance the benefits of NTMs against the potential loss of food access and ensure inter- ministerial coordination when setting NTMs.

Suggested Citation

  • Inoue, Yutaro & Saito, Katsuhiro & Kawasaki, Kentaro, 2024. "The Effects of Non-Tariff Measures on Agro-Food Trade: Heterogeneity of Seven Measures and their Effects on Agro-Food Sectors," IAAE 2024 Conference, August 2-7, 2024, New Delhi, India 344387, International Association of Agricultural Economists (IAAE).
    • Handle: RePEc:ags:iaae24:344387
    DOI: 10.22004/ag.econ.344387
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