GTAP Resources: Resource Display
| GTAP Resource #3867 |
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"UNCTAD activities on NTMs: Transparency in Trade initiative and the research and analysis" by Nicita, Alessandro Abstract There are several reasons why policymakers should ponder about non-tariff measures (NTMs). These include trade costs, legitimacy, and transparency. Non-tariff measures can affect competitiveness by imposing additional trade costs. They can serve legitimate purposes or conceal protectionist intents. Their use and implementation often lack transparency. There are a number of studies in the literature which attempt to quantify the effect of NTMs on international trade. They find significant variation in the trade-restrictive impact of NTMs across countries, with the magnitude of NTMs as barriers to trade generally increasing with GDP per capita. There is also considerable variation across sectors - NTMs in agriculture appear to be more stringent and widespread than those in the manufacturing sector. Furthermore, evidence suggests that NTMs are at least as important as tariffs in impeding trade and that their relative contribution to the overall level of protection increases with the level of GDP per capita. In the case of services, while barriers to trade generally higher in developing countries than in developed countries, they do not appear to be systematically associated with a countrys level of development. Variation in the level of openness across countries may be a function of the particular service sector considered. However, it is worth noting that the methods developed in the literature to estimate these trade effects suffer from a number of limitations which can be traced down, in part, to the relative lack of transparency in the use of NTMs. Against this background, UNCTAD, the World Bank, ITC and the African Development Bank have launched a coordinated effort (the Transparency in Trade initiative) which includes non-tariff measures data collection, capacity building and non-tariff measures data dissemination. The purpose of the joint initiative is to inform policy makers, trade analysis and the private sector on the use of NTMs and to analyze the im... |
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Last Modified: 9/15/2023 2:05:45 PM
