GTAP Resources: Resource Display
| GTAP Resource #5650 |
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"Pulling back the curtain on 'behind the border' trade costs: The case of EU-US agri-food trade" by Sanjuan Lopez, Ana Isabel, George Philippidis and Helena Resano Abstract With the upcoming elections in the USA, there is a growing urgency by trade negotiators on both sides of the Atlantic to conclude the Trans-Atlantic Trade and Investment Partnership (TTIP) negotiations. In the empirical literature, ex-ante impact assessments typically rely on respected databases (e.g., GTAP), whilst rich with detailed disaggregated representations of tariff barriers, lack price-compatible non-tariff measures (NTMs). In the absence of plausible NTMs, the estimated trade gains reported in many modelling studies are typically understated. Over the last decade, the usage of gravity models has received recognition as one such tool for understanding the 'part-worth' of NTM measures on trade restrictiveness. Thus, , panel data combined with recent methodological advances within the gravity literature are employed to generate bilateral NTM ad-valorem equivalent (AVE) estimates for disaggregated agri-food EU-US trade. On a general note, the results reveal the presence of significant behind the border NTM AVEs on both sides of the Atlantic, which exceed their tariff counterparts. Comparing with aggregate agricultural and food aggregates reported in other studies, the results are found to be of a similar magnitude. Furthermore, rigorous qualitative and quantitative comparisons on a sector-by-sector basis, reveal that a number of bilateral NTM AVEs are also found to be plausible, although in some cases, with recourse to relevant policy documents and expert opinion, it is debatable whether the EU or the US NTM AVE should be more restrictive. Further work could focus on improving the sector specificity of each gravity equation to further improve the model's predictive capacity. |
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- Non-Tariff barriers - European Union - North America |
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Last Modified: 9/15/2023 2:05:45 PM
