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Using supply chain analysis to examine the costs of non-tariff measures (NTMs) and the benefits of trade facilitation

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  • Ferrantino, Michael J.

Abstract

It has become increasingly common to produce goods in a number of geographically dispersed stages linked by international trade. This tendency, known by names such as production fragmentation, processing trade, and vertical specialization, has important implications for the analysis of nontariff measures (NTMs) and trade facilitation. First, different types of NTMs or trade facilitation issues are naturally associated with different stages in the movement of goods. Different price gaps can be assigned to these stages, making it possible to decompose the overall amount of distortion and to prioritize the policies with the largest potential efficiency gains. Second, NTMs may accumulate in long supply chains, implying that their trade-distorting effects are greater for goods produced in a fragmented manner than for goods with simple production processes. There is evidence that trade costs are more important for high technology goods or goods undergoing several stages of processing. Issues with product standards may be particularly important for goods with long supply chains. The link between NTMs and supply chains also has implications for economic development and for the relationship between liberalization in services and goods.

Suggested Citation

  • Ferrantino, Michael J., 2012. "Using supply chain analysis to examine the costs of non-tariff measures (NTMs) and the benefits of trade facilitation," WTO Staff Working Papers ERSD-2012-02, World Trade Organization (WTO), Economic Research and Statistics Division.
  • Handle: RePEc:zbw:wtowps:ersd201202
    DOI: 10.30875/8773a5b1-en
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    5. Beverelli, Cosimo & Neumüller, Simon & Teh, Robert, 2014. "A new look at the extensive trade margin effects of trade facilitation," WTO Staff Working Papers ERSD-2014-16, World Trade Organization (WTO), Economic Research and Statistics Division.
    6. Escaith, Hubert, 2014. "Exploring the policy dimensions of trade in value-added," MPRA Paper 59891, University Library of Munich, Germany, revised 08 Nov 2014.
    7. 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.
    8. Mahdi Ghodsi & Robert Stehrer, 2022. "Trade policy and global value chains: tariffs versus non-tariff measures," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 158(3), pages 887-916, August.
    9. Michida, Etsuyo & Ueki, Yasushi & Nabeshima, Kaoru, 2014. "Impact on Asian firms of product-related environmental regulations through global supply chains : a study of firms in Malaysia," IDE Discussion Papers 453, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    10. Beckman, Jayson & Arita, Shawn & Mitchell, Lorraine & Burfisher, Mary, 2015. "Agriculture in the Transatlantic Trade and Investment Partnership: Tariffs, Tariff-Rate Quotas, and Non-Tariff Measures," Economic Research Report 212886, United States Department of Agriculture, Economic Research Service.
    11. Beverelli, Cosimo & Neumueller, Simon & Teh, Robert, 2015. "Export Diversification Effects of the WTO Trade Facilitation Agreement," World Development, Elsevier, vol. 76(C), pages 293-310.
    12. Diakantoni, Antonia & Escaith, Hubert, 2014. "Trade in tasks, tariff policy and effective protection rates," MPRA Paper 60675, University Library of Munich, Germany.
    13. Ponomareva, Ekaterina (Пономарева, Екатерина) & Magomedov, Rustam (Магомедов, Рустам), 2017. "Non-Tariff Measures and the Structure of Trade Flows [Нетарифные Меры И Структура Торговых Потоков]," Working Papers 051704, Russian Presidential Academy of National Economy and Public Administration.
    14. 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.
    15. Jaime de Melo & Anna Twum, 2020. "Supply chain trade in East Africa: Prospects and challenges," Working Papers hal-02493410, HAL.
    16. Kirill Muradov, 2017. "Trade costs and borders in global value chains," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(3), pages 487-509, August.
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    20. Muradov, Kirill, 2016. "Trade costs and borders in the world of global value chains," Conference papers 332697, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
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    More about this item

    Keywords

    trade costs; non-tariff measures; standards; intermediate goods;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • F29 - International Economics - - International Factor Movements and International Business - - - Other

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