Estimations of Tariff Equivalents for the Services Sectors

Fontagné, Lionel; Guillin, Amélie; Mitaritonna, Maria Cristina

doi:10.2139/ssrn.2004933

Cited by 76 publications

(81 citation statements)

References 21 publications

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“…Indirect quantity approaches infer the non-tariff impact on trade flows from 'border-effects' (e.g. Chevassus-Lozza et al, 2008), 'fixed-effects' (Fontagné et al, 2011), or from the depth of past trade agreements (Egger et al, 2015). As an alternative indirect approach, the 'residual gravity approach' infers the non-tariff impact on trade from the residuals by comparing the value of observed imports constrained by trade barriers, with the expected value of imports in the absence of said trade barriers predicted by the gravity equation (Ferrantino, 2006).…”

Section: Literature Reviewmentioning

confidence: 99%

Pulling back the curtain on 'behind the border' trade costs: The case of EU-US agri-food trade

Sanjuán

Philippidis

Resano

2017

Span. j. agric. res.

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With the rise of anti-free-trade sentiment on both sides of the Atlantic, there is a growing urgency by trade negotiators to conclude the Trans-Atlantic Trade and Investment Partnership (TTIP) negotiations. The harmonisation of non-tariff restrictions is a key component of the talks, whilst global modelling databases typically lack a price compatible representation of these measures, which lends a degree of bias to ex-ante modelling assessments. In the gravity literature, there is (limited) evidence of non-tariff ad-valorem equivalent (AVE) estimates of agriculture and food, although disaggregated agri-food activities and/or bilateral EU-US route specific estimates are still in relatively short supply. Using panel data, this study consolidates both of these issues, whilst also proposing an 'indirect' gravity method as a basis upon which to provide econometric non-tariff AVE estimates compatible with the degree of sectoral concordance typically found in global modelling databases. On a general note, the results revealed the presence of significant 'behind the border' trade costs on both sides of the Atlantic, which exceed their tariff counterparts. Using simple aggregated averages, our estimates are comparable with 'direct' gravity method studies. Furthermore, rigorous qualitative and quantitative comparisons on a sector-by-sector basis showed that a number of bilateral non-tariff 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 is more restrictive. Further work could focus on refining the sector specificity of each gravity equation to improve the model's predictive capacity.

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Section: Literature Reviewmentioning

confidence: 99%

Pulling back the curtain on 'behind the border' trade costs: The case of EU-US agri-food trade

Sanjuán

Philippidis

Resano

2017

Span. j. agric. res.

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“…Tariffs are taken from the MAcMap-HS6 database (Guimbard et al, 2012) for years 2007 and 2010, and AVEs for NTMs in goods are our own estimations (see above). AVEs for NTMs in the service sector are taken from Fontagné et al (2011).…”

Section: Data and Aggregationmentioning

confidence: 99%

Interdependencies between Atlantic and Pacific agreements: Evidence from agri-food sectors

Disdier¹,

Emlinger

Fouré

2016

Economic Modelling

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Trade liberalization of the agri-food sector is a sensitive topic in both Transatlantic Trade and Investment Partnership (TTIP) and Trans-Pacific Partnership (TPP) discussions. This article provides an overview of current trade flows and trade barriers. Then, using a general equilibrium model of international trade (the MIRAGE model), it assesses the potential impact of these two agreements on agri-food trade and production. The results suggest that the US agri-food sectors would gain from both agreements while almost all their partners and third countries would benefit less, and might register losses in some sectors. However, the two agreements are not competing, since all the contracting parties' interests are complementary. Finally, we show that the Atlantic trade may be impacted by the inclusion of harmonized standards within the Pacific agreement but not by its extension to additional members (e.g. China or India).

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“…We include international transaction costs and non-tariff measures (NTM) in services, modeled as an iceberg trade cost. Data to calibrate trade costs associated with time were calibrated using a database provided by Minor and Tsigas (2008), which adopts the methodology in Hummels and Schaur (2012); NTM in services are ad-valorem equivalents taken from Fontagné et al (2011).…”

Section: The Cge Modelmentioning

confidence: 99%

“…Regarding the reduction in the barriers to trade in services, we start with the ad valorem equivalents computed by Fontagné et al (2011), modeled here as a trade cost. We then set the target to -50% in 2030, and this phasing out is implemented linearly between 2013 and 2030.…”

mentioning

confidence: 99%

Opening a Pandora's Box: Modeling World Trade Patterns at the 2035 Horizon

Fontagné

Fouré

2013

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Taking a 2035 horizon, we examine how world trade patterns will be shaped by the changing comparative advantages, demand, and capabilities of different regions. We combine a convergence model fitting three production factors (capital, labor and energy) and two factor-specific productivities, alongside a dynamic CGE model of the world economy calibrated to reproduce observed elasticity of trade to income. Each scenario involves three steps. First, we project growth at country level based on factor accumulation, educational attainment and efficiency gains, and discuss uncertainties related to our main drivers. Second, we impose this framework (demographics, gross domestic product, saving rates, factors and current account trajectories) on the CGE baseline. Third, we implement trade policy scenarios (tariffs as well as non-tariff measures in goods and services), in order to get factor allocation across sectors from the model as well as demand and trade patterns. We show that the impact of changing baselines is greater than the impact of a policy shock on the order of magnitude of changes in world trade patterns, which points to the need for care when designing CGE baselines. Classification: E23, E27, F02, F17, F47 Terms of use: Documents in JEL

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Estimations of Tariff Equivalents for the Services Sectors

Cited by 76 publications

References 21 publications

Pulling back the curtain on 'behind the border' trade costs: The case of EU-US agri-food trade

Pulling back the curtain on 'behind the border' trade costs: The case of EU-US agri-food trade

Interdependencies between Atlantic and Pacific agreements: Evidence from agri-food sectors

Opening a Pandora's Box: Modeling World Trade Patterns at the 2035 Horizon

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