The political economy of non‐tariff measures

Abstract

This paper examines the extent to which non‐tariff measures (NTMs) are set for protectionist purposes. Our main focus is on developing countries. Overall results show that NTMs reflect protectionist forces, in particular for those that have been subject to trade concerns at the World Trade Organization (WTO). For the other measures, there is no evidence that protectionism is the driving force behind their adoption, suggesting that their determinants may be associated with legitimate goals such as consumer health and safety. Furthermore, transnational lobbying, defined as the participation of national business groups at the Ministerial Conferences—the highest authority of the WTO—is positively associated with the probability of adopting NTMs.

Are nontariff measures and tariffs substitutes? Some panel data evidence

“…Orefice (2017) reports that as a consequence of tariff cuts, SPS and TBT measures are used to restrict trade. Herghelegiu (2018) documents substitutability between NTMs and tariffs, where products that experience tariff reductions increase the probability of being subjected to NTM protection. This finding of "substitutability" has been confirmed by Broda et al (2008) in their broader examination of NTMs.…”

“…https://orcid.org/0000-0001-9338-4338 ENDNOTES 1 Several studies use tariff "changes" as their main explanatory variable (see Herghelegiu, 2018;Moore & Zanardi, 2011;Orefice, 2017), with some solely focused on tariff "reduction" (see Beverelli et al, 2014;Feinberg & Reynolds, 2007;Ketterer, 2016), while others use tariff "levels" (see Kee et al, 2009;Ronen, 2017;WTO, 2012). 2 Although the NTM may be the binding constraint on the quantity of imports, we assume that the tariff barrier would remain with the removal of the NTM.…”

“… Several studies use tariff “changes” as their main explanatory variable (see Herghelegiu, ; Moore & Zanardi, ; Orefice, ), with some solely focused on tariff “reduction” (see Beverelli et al, ; Feinberg & Reynolds, ; Ketterer, ), while others use tariff “levels” (see Kee et al, ; Ronen, ; WTO, ). …”

Impact of nontariff measures on firms in Tunisia

“…He shows that when treated endogenously, NTBs reduce U.S. manufacturing imports 10 times more than the effect estimated when NTBs are considered exogenous. Literature on the political economy determinants of NTMs has examined other motives for the adoption of NTMs, such as tariff substitution (Herghelegiu, 2018;Moore & Zanardi, 2011).…”

Revista Tempo do Mundo (RTM): n. 22, abr. 2020

“…Por sua natureza, as MNTs são ainda mais intensas no comércio agrícola e entre países emergentes (Beghin, Disdier e Marette, 2015;Niu et al, 2018;Herghelegiu, 2018). Os países que formam o BRICS 3 estão entre as economias emergentes que apresentam especial relevância no comércio agrícola: 11,5% da exportação agrícola mundial provém deles.…”