Search Results (8)

Asia accounted for 167.1 million tons of global fisheries and aquaculture production, 75 percent of the world’s total. Seafood, especially aquaculture products, is a dominant and growing sector and crucial in the Asia-Pacific region for ensuring global food security, supporting sustainable livelihoods, reducing poverty for small-scale fisheries, and promoting environmental sustainability. However, amidst the current backdrop of the World Trade Organization (WTO)‘s inefficiency and dysfunctional mechanism, coupled with a slowdown in global economic growth and the resurgence of trade unilateralism and protectionism, these challenges have created significant barriers to trade, limiting market access and hindering the sustainable growth of the seafood industry. The implementation of the Regional Comprehensive Economic Partnership (RCEP) offers Asia-Pacific economies a promising opportunity to expand trade and stimulate economic growth sustainably. In this study, we aim to provide a comprehensive overview of the potential effects of the RCEP on aquatic products trade among the parties. A key marginal contribution in our study is that we adjusted the existing tariff rates under other FTAs to the same period as tariff rates under RCEP and compared the concession rates between these different FTAs to clearly illustrate the potential tariff effects of RCEP. On the non-tariff side, we analyze specific provisions in the RCEP agreement that could potentially affect aquatic products trade and evaluate their possible impacts. The results showed that, as of 2022, in almost all RCEP parties, the average tariffs under the RCEP agreement are generally higher than those under other existing FTAs, which indicates that the tariff concession efforts under RCEP are limited for most parties. However, due to certain progressiveness compared to other FTAs in terms of its provisions on non-tariff measures, such as rules of origin, sanitary and phytosanitary measures (SPS) regulations, etc., RCEP has the potential to benefit a broader range of countries and products, making market access more convenient and inclusive for the seafood industry. Full article

Technical Measures to Trade have the characteristics of strong concealment and imperceptibility, which makes some WTO members frequently use “technical barriers” to restrict China’s product exports. Based on the multi-period differences-in-differences method, we use micro-data at the level of Chinese companies from 2000 to 2013 to empirically test the impact of technical measures on the export participation of companies from the perspective of corporate heterogeneity. The study found that for the strength of the technical measures, the coefficients on the technical measures variables are all significantly positive. From the perspective of the types of Technical Measures to Trade, the increase of Technical Barriers to Trade and Pre-shipment Inspection has significantly improved enterprises, and the promotion effect of Sanitary and Phytosanitary Measures on the export participation degree of enterprises is not significant. According to the intermediary effect model, it can be concluded that there is an indirect transmission channel through which technical measures affect the participation of enterprises in export through export diversification. Full article

In recent years, the Indian Ocean Rim Association has witnessed an increasing trend in the use of non-tariff measures (NTMs). This study evaluated the impact of NTMs in the Indian Ocean Rim Association through estimations of their ad valorem equivalents at the HS chapter and country levels. A gravity model using NTM count data (intensity) was specified and estimated to derive the importer-specific ad valorem equivalents for the four (4) most used NTMs in the region. The results showed the presence of both import-impeding and import-promoting effects of NTMs; however, the import-impeding effects dominated in the region. The quantitative restriction and safeguard measures were more restrictive compared to the sanitary and phytosanitary measures and technical barriers to trade. This was expected since quantitative restrictions are trade-distorting by design. This calls for reforming trade policy in the region toward NTMs that are more transparent and trade enhancing for successful subsequent trade negotiations in the Indian Ocean Rim Association, which would support the sustainable economic development of the region. Full article

This study quantifies the structure similarity of nontariff measures between countries and estimates its impact on bilateral agricultural trade using a structural gravity model. The findings show that a similar structure of technical barriers to trade (TBT) between countries is likely to expand their bilateral trade. However, a similar structure of sanitary and phytosanitary measures (SPS) is shown to have negative impacts on agricultural trade. We also discuss the effects of regulatory harmonization on sustainable development. Full article

(1) Background: As countries with troubled histories, China, Japan, and Korea have, in recent times, attempted to overcome political and economic differences in a bid to forge strong trade relationships. However, Non-Tariff Measures (NTMs) have emerged in recent times, which has the potential to complicate matters. (2) Method: Our study analyzes the impact that two forms of NTM, technical barriers to trade (TBT) and sanitary and phytosanitary measures (SPS), have on Japanese and Korean exports to China. In order to effectively measure their impact, we utilize a modified version of the Gravity model and the Poisson Pseudo Maximum Likelihood method (PPML). Using three measures (coverage ratio, frequency index, and the dummy variable) to determine their impact, our study displayed a range of findings. (3) Results: The key results from our study showed that from a coverage ratio perspective, our research clearly demonstrates that Chinese TBT measures, reduce Japan and Korea’s manufacturing and total exports as a whole, while Chinese SPS measures encourage Korean agricultural exports. Moreover, the frequency index results and dummy variable estimations in the main also supported the coverage ratio findings with SPS measures promoting Korean agricultural goods exports. (4) Conclusions: Our research highlights the important role the TBT measures have played to shelter China’s emerging industrial sector from the rigors of highly competitive Korean and Japanese exporters. In doing so, the Chinese government is able to actively pursue some of its key sustainable development strategies such as “Made in China 2025” and “Industrial 4.0”. Full article

Sustainable development (SD) is one of the objectives of the World Trade Organization (WTO), and in order to achieve SD, the precautionary principle (PP) is one of the most appropriate means that can be used. This study aims to explore whether the WTO promotes SD through its legal interpretation of the PP and to provide suggestions for realizing the balance between trade liberalization and sustainable development in the WTO. To this end, this study conducts a case analysis on the Korea-Import Bans, and Testing and Certification Requirements for Radionuclides (DS495) dispute from legal and political-economic perspectives, and finds that the WTO’s rigorous examinations of the four requirements presented in Article 5.7 of the Agreement on the Application of Sanitary and Phytosanitary Measures (the SPS Agreement) remain a significant impediment for the incorporation of the PP into WTO jurisprudence, and can also cause systemic problems. This study suggests that efforts from three dimensions—the WTO adjudicating parties, the government, and the lobbying groups of importing countries—are required to promote SD in the WTO. Full article

Trade agreements and trade measures are policy instruments thought to favour trade by providing a degree of harmonisation among members. We analyse how the agri-food trade and the incidence of Sanitary and Phytosanitary Standards (SPSs) have evolved within countries sharing agreements. We examine, through a regression discontinuity design, whether the approval of agreements affects the evolution of trade and SPSs over time, and quantify the trade effects of SPSs. We also provide differences before and after the introduction of agreements, and among the most regulated agri-food products. Findings show that trade agreements tend to favour the increase of trade and the reduction of policy measures between members. However, regulation inequalities exist across trade agreements covering different geo-economic areas: after the approval of agreements, the existence and the importance of SPSs become relevant among developing countries, whereas the pervasiveness of SPSs becomes less stringent between developed and developing countries. Our analyses also prove that trade agreements and trade measures are trade-enhancing only at aggregate level: product-specific analyses show that cereal is the only sector that benefits from the joint influence of trade agreements and SPSs. The harmonisation of SPSs within agreements may be determinant in avoiding distortions in favour of members. Full article

Since China first joined the World Trade Organization (WTO) in 2001, many countries around the world have sought to capitalize on lower tariff rates and China’s increasing demand for high quality agricultural products. However, as competitive pressures in its agricultural sector have intensified, the Chinese government has implemented other forms of protectionist measures. Known as non-tariff measures (NTMs), these policy initiatives have added another dimension to international trade activities that needs to be better understood. Using a set of variables clearly identified in academic literature, our paper analyzes the effect that sanitary and phytosanitary measures (SPS) have on New Zealand, U.S., Korean, and Japanese agricultural exports to China. To measure the effect that NTMs have on exports, we use an adapted version of the gravity model and the Poisson pseudo maximum likelihood method. The key findings from the empirical projection show that Chinese SPS measures have a negative, albeit insignificant effect on the sample as a whole. However, when looking at the individual countries, the SPS measures were seen to have a negative effect on Japan and the U.S., while from a Korean perspective, their impact was positive and significant. As part of a secondary analysis, it was interesting to note that the SPS measures had a positive effect on New Zealand’s exports before its free trade agreements (FTA) with China came into force. However, in the years since then, they were seen to have a negative impact. Full article