A PRELIMINARY ANALYSIS ON NEWLY COLLECTED DATA ON NON-TARIFF MEASURES

Julien Gourdon and Alessandro Nicita

No 53, UNCTAD Blue Series Papers from United Nations Conference on Trade and Development

Abstract: This paper makes use of data newly collected by UNCTAD and the World Bank to investigate he use of non-tariff measures (NTMs) in about 26 countries. The analysis is based on simple inventory methods: frequency indices and coverage ratios. The results indicate that the use of NTMs is extensive and increasing, especially with regard to technical measures. Technical barriers to trade (TBTs) are found to affect a large share (about 30 per cent) of international trade. Given the more limited scope for sanitary and phytosanitary (SPS) measures, these affect only about 15 per cent of trade but more than 60 per cent of agricultural products. In regard to non-technical measures, their use varies greatly across countries and economic sectors. The use of quantity controls has increased but is now largely limited to non-automatic licences. As a whole, quantity control measures affect approximately 16 per cent of products and 20 per cent of trade. Pre-shipment inspection requirements affect about 11 per cent of trade. These are implemented especially in low-income countries to help custom administrations in the correct evaluation of imports and their proper taxation. Price-control measures are only rarely used and affect less than 5 per cent of trade and only 2 per cent of products. The results also suggest the presence of correlation between the use of NTMs and traditional forms of trade policy. This may indicate that NTMs have been used, at least to some degree, as substitutes to tariffs in order to continue protecting key economic sectors in spite of the tariff liberalization of the last 10 years.

Date: 2013
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