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GTAP Resource #4349

"Do Product Standards Matter for Margins of Trade? Evidence from Egyptian Firm-Level Data "
by Zaki, Chahir, Rana Hendy and Hoda El Enbaby

The World Trade Organization (WTO) has deployed several efforts in order to reduce tariffs since the birth of the General Agreement on Tariffs and Trade (GATT) in 1948. Data from the World Development Indicators show that the trade-weighted average tariff has declined from 34 % in 1996 after the WTO creation to 2% in 2010. This has been observed for both primary and manufacturing products. Indeed, while for the manufacturing products, the trade-weighted average tariff has declined from 5% to 3%, that of primary products has decreased from 111% to 2% over the same period. Yet, despite this significant liberalization, non-tariff measures (NTMs) have constantly increased and raised new challenges for the international trade policy. For this reason, more attention has progressively shifted towards them given that they pose several concerns for transparency, reasons behind their implementation and above all their detrimental effect on trade flows. According to Moise and Bris (2013), NTMs refer to all policy interventions other than tariffs that affect trade in goods and services. These interventions encompass import quotas, export restraints, government procurement, technical barriers to trade (TBT), sanitary and phyto-sanitary measures (SPS), rules of origin, domestic content requirements, etc. Indeed, the empirical literature on trade policy has shown that NTMs add on average an additional 87% on the restrictiveness imposed by tariffs (Kee et al, 2009). Moreover, according to Anderson and van Wincoop (2004), non-tariff measures (NTMs) are more problematic than tariff barriers. In fact, in comparison to tariffs, NTBs are concentrated in a smaller number of sectors and in those sectors they are much more restrictive.

These measures have several characteristics. First, they are applied by both the importing and exporting countries implying various challenges and additional costs for exporters in developing countries, and may be perceived as trade impediments. Seco...

Resource Details (Export Citation) GTAP Keywords
Category: 2014 Conference Paper
Status: Published
By/In: Presented at the 17th Annual Conference on Global Economic Analysis, Dakar, Senegal
Date: 2014
Created: Zaki, C. (4/1/2014)
Updated: Zaki, C. (4/1/2014)
Visits: 2,368
- Economic development
- Multilateral trade negotiations
- Non-Tariff barriers
- Africa (North)
- Middle East
- North America

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