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Modelling the Impact of Non-Tariff Measures on Supply Chains in the Asia Pacific Region

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  • Webb, Mike
  • Strutt, Anna
  • Gibson, John
  • Walmsley, Terrie

Abstract

This paper explores the impact of non-tariff measures (NTMs) on supply chains in the Asia-Pacific region, with a focus on exports to major ASEAN countries. Generally defined, NTMs are policy measures, other than tariffs, which may have an impact on international trade. The database of NTMs used was compiled as part of a multi-agency project led by UNCTAD. This database contains detailed and comprehensive data on NTMs obtained from teams of researchers working systematically through all laws, rules and regulations which may affect merchandise trade. These measures are then set within a common classification framework and assigned to tariff lines within the World Customs Organization’s Harmonized System. We first use the detailed NTM database to obtain econometric estimates of the effect of different types of NTMs on imports into major ASEAN countries, using a gravity model framework. We then use these econometric estimates in a global computable general equilibrium model to examine the impact of unilaterally eliminating the types of NTMs that are found to have significant negative effects on trade. We use a newly available Global Supply Chain Model, based on the well-known Global Trade Analysis Project (GTAP model). By utilizing this model, we can capture the effects of reducing NTMs identified as particularly problematic separately on products sold for intermediate production and those sold to final consumers. Moreover, we can separate the effects of NTM liberalization depending on whether the obligation and its cost is directed at exporters or importers. This facilitates quantification and in-depth analysis of the impact of NTMs on supply chains.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:pugtwp:332906
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    References listed on IDEAS

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    7. Thomas W. Hertel & Terrie Walmsley & Ken Itakura, 2005. "Dynamic Effects Of The "New Age" Free Trade Agreement Between Japan And Singapore," World Scientific Book Chapters, in: Philippa Dee & Michael Ferrantino (ed.), Quantitative Methods For Assessing The Effects Of Non-Tariff Measures And Trade Facilitation, chapter 18, pages 483-523, World Scientific Publishing Co. Pte. Ltd..
    8. Thomas W. Hertel & Terrie Walmsley & Ken Itakura, 2005. "Dynamic Effects Of The "New Age" Free Trade Agreement Between Japan And Singapore," World Scientific Book Chapters, in: Philippa Dee & Michael Ferrantino (ed.), Quantitative Methods For Assessing The Effects Of Non-Tariff Measures And Trade Facilitation, chapter 18, pages 483-523, World Scientific Publishing Co. Pte. Ltd..
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