Tariff Equivalent of Technical Barriers to Trade with Imperfect Substitution and Trade Costs

Chengyan Yue, John Beghin () and Helen H. Jensen ()

Center for Agricultural and Rural Development (CARD) Publications from Center for Agricultural and Rural Development (CARD) at Iowa State University

Abstract: The price-wedge method yields a tariff-equivalent estimate of technical barriers to trade (TBT). An extension of this method accounts for imperfect substitution between domestic and imported goods and incorporates recent findings on trade costs. We explore the sensitivity of this revamped tariff-equivalent estimate to its determinants (substitution elasticity, preference for home good, trade cost, and to the reference data chosen). We use the approach to investigate the ongoing U.S.-Japan apple trade dispute and find that removing the Japanese TBT would yield limited export gains to the United States. We then draw policy implications of our findings.

Keywords: apple trade; Japan; price wedge; sanitary and phytosanitary (SPS); tariff equivalent; technical barriers to trade (TBT); trade cost; trade dispute. (search for similar items in EconPapers)
JEL-codes: F1 F18 Q17 Q18 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr and nep-int
Date: 2005-11
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Related works:
Working Paper: Tariff Equivalent of Technical Barriers to Trade with Imperfect Substitution and Trade Costs (2005)
Working Paper: Tariff Equivalent of Technical Barriers to Trade with Imperfect Substitution and Trade Costs (2005)
Working Paper: Tariff Equivalent of Technical Barriers to Trade with Imperfect Substitution and Trade Costs (2005)
Working Paper: Tariff Equivalent of Technical Barriers to Trade with Imperfect Substitution and Trade Costs (2005)
Journal Article: Tariff Equivalent of Technical Barriers to Trade with Imperfect Substitution and Trade Costs (2006)
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Persistent link: http://EconPapers.repec.org/RePEc:ias:cpaper:05-wp383

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