Template-Type: ReDIF-Paper 1.0

Author-Name:  Cadot, Olivier
Author-Name-First: Olivier
Author-Name-Last: Cadot

Author-Name:  Gourdon, Julien
Author-Name-First: Julien
Author-Name-Last: Gourdon

Title: NTMs, Preferential Trade Agreements, and Prices: New evidence
Abstract: Abstract

Combining for the first time a new dataset of non-tariff measures (NTMs) in 65 countries with the CEPII’s unit values database, we estimate average ad-valorem equivalents (AVEs) for SPS, TBT and other measures by section of the Harmonized System of product classification. While most existing AVEs are obtained from indirect quantity-based estimation, ours are obtained from direct price-gap estimation. They lie in a single-digit range, i.e. substantially lower than previous estimates based on older data. Our results may reflect the progressive phasing out of commandand-control instruments such as quantitative restrictions in many countries; they also suggest that sanitary and technical regulations have not substituted for them as trade-restrictive interventions. Most interestingly, we show that deep-integration clauses in regional trade agreements, in particular the mutual recognition of conformity-assessment procedures, substantially reduce the price-raising effect of NTMs, possibly reflecting lower compliance costs.

Creation-Date:  2015-02-15
File-URL: http://www.wti.org/media/filer_public/c7/69/c769a952-d5af-4b5e-9f6a-6946bfee87fc/cadot_gourdon_ntms_preferential_trade_agreements_and_prices.pdf
File-Format: Application/pdf
File-Function: First version
Handle: RePEc:wti:papers:833