Maritime transport costs have a significant impact on the trade in agricultural goods. Maritime transport costs represent a high proportion of the imported value of agricultural products --10% on average, which is a similar level of magnitude as agricultural tariffs. This study shows that a doubling in the cost of shipping is associated with a 42% drop in trade on average in agricultural goods overall. The tendency to source imports from countries with low transport costs is therefore strong. Trade in some products is particularly affected by changes in maritime transport costs, in particular cereals and oilseeds, which are shipped in bulk. Time spent in transit also has a strong effect on trade: an extra day spent at sea on an the average sea voyage of 20 days implies a 4.5% drop in trade between a given pair of trading partners. Not only cost but also efficiency in getting agricultural goods to market are therefore important factors in explaining trade flows.
Trade logistics facilitate trade. Quality logistics services play an important role in facilitating the transportation of international trade in goods: inefficient logistics services impede trade by imposing an extra cost in terms of time as well as money. As developed nations shift from traditional manufacturing and agriculture and are increasingly engaging in international vertical specialization, the need for efficient logistics services becomes ever more important. High quality logistics services improve the competitiveness of a country’s exports by reducing the cost involved in transporting goods – especially for countries that are disadvantaged by being far from major markets. This paper investigates the role that trade logistics play in the volume and value of international trade and the extent to which poor quality logistics constitute a barrier to trade. It examines the different impact of logistics quality on goods that are transported by sea and by air. The differentiated impact of trade logistics such as infrastructure on low, middle and higher-income countries is analysed.trade, logistics services, trade facilitation, border administration, trade policy working paper, customs procedures, trade costs, trade logistics, transport infrastructure, ports, air infrastructure, infrastructure, logistics, tracking and tracing, logistics competence, freight forwarding
This paper was declassified by the Working Party of the Trade Committee in February 2021 and prepared for publication by the OECD Secretariat. This paper, as well as any data and any map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.
This paper provides an in-depth examination of the trade effects of three regional trade agreements (RTAs) -the ASEAN Free Trade Agreement (AFTA), the Common Market for Eastern and Southern Africa (COMESA) and the Southern Cone Common Market (MERCOSUR) --in the agricultural sector.Results from a gravity model suggest that the creation of AFTA, COMESA and MERCOSUR have increased trade in agricultural products between their member countries. There is no robust indication of trade diversion with respect to imports from outside the region. The agreements are therefore net trade creating. There is no robust indication however that there has been strong trade creation with non-members in the case of any of the RTAs under study. In some cases, lack of transport and communications infrastructure, in addition to supply constraints, lessens the effect of the RTA on trade flows. Trade costs such as transport and logistics seem to remain important factors in determining agricultural trade flows. In some RTAs, countries have a comparative advantage in exporting many of the same agricultural products, thereby decreasing the impact of the preferential market access. A number of implications for South-South RTAs can be drawn from examining these very different agreements.
Import tariffs and export taxes that are imposed on products far upstream in global supply chains increase trade costs strongly since they are applied on products that will most likely be traded many times before they are sold for final consumption. This paper examines the export and import restrictions in place on minerals and metals. This paper provides a backdrop to the recent trade restrictions on minerals and metals. This issue has had much resonance lately since the United States imposed import tariffs of 25% on steel and 10% on aluminium from some major producing countries. The use of export restrictions by producers of minerals and metals is increasing. Moreover, once export restricting measures are in place, they are rarely lifted. Export taxes on minerals and metals can be high, and some are prohibitively high. High export taxes negatively affect exports by countries that impose them. Import policies are very different to those that apply to exports: in major markets for minerals and metals, import tariffs have been substantially lower on average compared with the export taxes imputed by producing countries. Eight successive rounds of multi-lateral trade negotiations have taken place since 1947, resulting in fairly low import tariffs with many countries having bound their tariffs, i.e. pledged not to raise them above an agreed maximum, at successively lower levels. Export taxes are not subjected to multi-lateral oversight. Trade restrictions are used particularly frequently on metallic waste and scrap, which is generated either as a by-product of the mining and refining process or from recycled goods. Since recovered materials can re-enter the production cycle as inputs, trade restrictions pose a particular challenge to the aim of decoupling industrial production from resource use, which is deemed necessary to achieve compliance with the 2030 Agenda and Sustainable Development Goals (SDGs).
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.