Beyond Tariffs: The Role of Non‐Tariff Barriers in Dairy Trade in the East African Community Free Trade Area

Abstract

This study used a spatial equilibrium modelling approach to quantify the relative welfare impacts of eliminating tariffs and non‐tariff barriers on trade in dairy products among East African Community (EAC) member countries. The results indicated that removing tariffs only would not produce any significant welfare improvements unless it was accompanied by trade‐enhancing measures such as reductions in non‐tariff barriers and transport costs. In the current modelling framework, net welfare gains were higher in relatively lower‐income countries like Burundi than in higher‐income countries like Kenya. This indicates that reductions in trade costs may reduce regional imbalances in the EAC.

Characterising non-tariff trade policy

“…The literature on the impact of these measures is growing fast, mainly with a focus on one specific product and/or region (e.g. Arita et al, 2017;Dal Bianco et al, 2016;Gelan and Omore, 2014;Peterson et al, 2013). These two types of NTMs are notified most frequently to the WTO, but they are by their nature not necessarily the most trade-restrictive measures.…”

Impact of Import Restrictions Policy on Dairy Supply and Demand in Indonesia

“…Some studies on import tariff policy as a restriction on policy on dairy trade liberalization were conducted (Flaig et al, 2013;Gelan & Omore, 2014;Shagdar & Nyamdaa, 2017;Biden et al, 2020;Beckman et al, 2021). However, studies on the impact of import tariff policy on dairy supply and demand holistically are rarely conducted.…”

Africa in global agricultural trade

“…On the demand side, African exporters face several trade barriers (both tariffs and nontariff measures) that affect their penetration in developed and emerging markets (Disdier et al 2008;Gelan and Omore 2014;Liu et al 2019). Moreover, African products are not sufficiently competitive, as they do not meet the quality standards of world markets (World Bank 2015).…”