NTMs, Preferential Trade Agreements, and Prices: New evidence

Olivier Cadot and Julien Gourdon

Working Papers from CEPII research center

Abstract: Combining for the first time a new dataset of non-tariff measures (NTMs) in 65 countries with the CEPII’s unit values database, we estimate average ad-valorem equivalents (AVEs) for SPS, TBT and other measures by section of the Harmonized System of product classification. While most existing AVEs are obtained from indirect quantity-based estimation, ours are obtained from direct price-gap estimation. They lie in a single-digit range, i.e. substantially lower than previous estimates based on older data. Our results may reflect the progressive phasing out of commandand- control instruments such as quantitative restrictions in many countries; they also suggest that sanitary and technical regulations have not substituted for them as trade-restrictive interventions. Most interestingly, we show that deep-integration clauses in regional trade agreements, in particular the mutual recognition of conformity-assessment procedures, substantially reduce the price-raising effect of NTMs, possibly reflecting lower compliance costs.

Keywords: NTMs; price gaps; RTAs; deep integration; harmonization; unit values (search for similar items in EconPapers)
JEL-codes: F13 F15 (search for similar items in EconPapers)
Date: 2015-02
New Economics Papers: this item is included in nep-int and nep-mfd
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Related works:
Journal Article: Non-tariff measures, preferential trade agreements, and prices: new evidence (2016)
Working Paper: NTMs, Preferential Trade Agreements, and Prices: New evidence (2015)
Working Paper: NTMs, Preferential Trade Agreements, and Prices: New evidence (2015)
Working Paper: NTMs, Preferential Trade Agreements, and Prices: New evidence (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:cii:cepidt:2015-01

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