Sustainable Production, Non-Tariff Measures, and Trade Performance in RCEP Countries

Abstract

The main objective of this paper is to reinvestigate the impacts of non-tariff measures (NTMs) on bilateral exports among Regional Comprehensive Economic Partnership (RCEP) countries. The study adds to the literature in two areas. First, we calculate coverage ratios for NTMs related to specific sustainable development goals (SDGs) imposed on bilateral trade between RCEP member countries. Second, to avoid aggregation bias, the analysis covers four major sectors, namely agrifood, health, logistics, and other manufacturing. The results of a Poisson pseudo maximum likelihood (PPML) regression in a gravity model, using average import data from 2016 to 2018 at the Harmonized Commodity Description and Coding Systems (HS) two-digit level (97 subsectors), show that the effects of SDG-related NTMs vary by sector. NTMs related to SDG 3 (good health and well-being) distort trade in health but enhance trade in logistics. NTMs related to SDG 12 (responsible consumption and production) have a negative impact on logistics but a positive impact on other manufacturing exports. The findings provide new perspectives on the varying impacts of SDG-related NTMs on trade. Interestingly, the study finds that NTMs addressing SDGs 3 and 12 have positive trade impacts. Policymakers should, however, regulate NTM implementation, to minimize negative impacts and ensure that domestic firms comply to promote sustainable production.

The Spatial Correlation and Driving Mechanism of Wood-Based Products Trade Network in RCEP Countries

“…In addition, some scholars have studied the heterogeneous effects of different trade facilitation measures on RCEP members. For instance, Zainuddin et al [8] proved that the impacts of non-tariff measures (NTM) on bilateral exports among RCEP countries are heterogeneous in different industries. Erokhin et al [9] found that there is a major imbalance between the potential value of trade among countries and the actual advantages of RCEP economies.…”

Non-Tariff Measures and Competitiveness of Indonesia’s Natural Rubber Export in Destination Countries

“…Furthermore, implementing NTMs with the TBT type positively affected Indonesia's natural rubber export in various destination countries (Virginia & Novianti, 2020). On the other hand, research on NTMs and the export performance of RCEP countries unveiled that the implementation of NTMs by importing countries reduced the export performance of the health sector (Zainuddin, Sarmidi, & Khalid, 2020). It is supported by a study concerning NTMs and the export performance of Indonesia's fishery commodities, uncovering that NTMs harmed the export performance of these commodities (Permata & Handoyo, 2019).…”

“…Furthermore, the trade value for Indonesia's TSNR subject to NTMs in an importing country can be seen from the coverage ratio. The coverage ratio can demonstrate the reach of NTMs and their importance for imported goods (Zainuddin et al, 2020). The coverage ratio was examined using the following formula (Disdier & Fugazza, 2019).…”

“…𝑉 𝑖 indicates the import value of product i. The higher coverage ratio value signifies that Indonesia's Natural Rubber Productivity and ….. (Prasada and Dhamira) Indonesia's natural rubber commodity is getting bigger, affected by NTMs in importing countries (Virginia & Novianti, 2020;Zainuddin et al, 2020).…”

Economic Transformation and Sustainable Development through Multilateral Free Trade Agreements

“…As globalization proceeds rapidly and in a much more complex way, multilateral free trade agreements, such as the Regional Comprehensive Economic Partnership (RCEP), have been pursued for economic transformation breakthroughs. Related to the issue of sustainability, recent works highlight, among others, the dynamic and diverse economic aspects in RCEP countries (e.g., References [7,8]).…”