Reducing transatlantic barriers on U.S.-EU agri-food trade: What are the possible gains?

Arita, Shawn; Beckman, Jayson; Mitchell, Lorraine

doi:10.1016/j.foodpol.2016.12.006

Cited by 52 publications

(46 citation statements)

References 21 publications

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“…Moreover, from an empirical perspective, different proxies have been used to measure NTMs such as frequency indexes and coverage ratios [8,9,16], which have shown mixed results as to the impact the measures have on trade flows. While the findings tend to be negative if NTMs are proxied by ad-valorem equivalent (AVE) [17]. Data use is also an important consideration, [18] finding that data aggregated at the HS-4 digit level have been found to have a positive impact on trade flows, while Beckman and Arita [19] showed that data using the HS-6 digit level was seen to have a negative impact.…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of TBT and SPS Measures on Japanese and Korean Exports to China

Wood

et al. 2019

Sustainability

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(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”.

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Section: Literature Reviewmentioning

confidence: 99%

The Impact of TBT and SPS Measures on Japanese and Korean Exports to China

Wood

et al. 2019

Sustainability

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“…In particular, the number of technical NTMs, negligible until the mid-1990s, experienced an exponential increase after 1994 (+360%, from 120,272 implemented until 1994 to 554,446 until 2016, [26]). In fact, the negotiations of the WTO determined the proliferation of the NTMs in response to a large reduction in tariffs [4,13].…”

Section: On Trade Agreements and Technical Non-tariff Measures In Thementioning

confidence: 99%

“…By facing such continuous changes, policymakers have attempted to progressively liberalise the agri-food trade: multilateral and country-specific negotiations have been longstanding at the forefront of the trade policy agenda [3]. In particular, the multilateral negotiations of the World Trade Organisation (WTO) in the mid-1990s have provided a substantial reduction of tariffs, balanced out by the wide diffusion of non-tariff measures (NTMs) [4]. In parallel with the multilateral negotiations, several agreements have evolved at regional level to further liberalise trade: the higher the initial level of trade regulations between members, the larger the trade liberalisation.…”

Section: Introductionmentioning

confidence: 99%

On the Evolution of Trade and Sanitary and Phytosanitary Standards: The Role of Trade Agreements

2018

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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.

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“…To consider the potential effects of a U.S. withdrawal from NAFTA, we use a global CGE model that allows the tracking of agricultural products through trade and production channels to consumers. Our model is based on the CGE modeling database from the Global Trade Analysis Project (GTAP, version 10), as described in Beckman, Arita, Mitchell, and Burfisher () and Arita, Beckman, and Mitchell (), and features several aspects useful for studying agriculture and related sectors: it incorporates biofuels and their coproducts (from Taheripour, Hertel, Tyner, Beckman, and Birur, ), it utilizes a livestock/feed nesting structure (from Beckman, Keeney, and Tyner, ), and it features a detailed land‐use module that captures heterogeneous land quality (noted in Taheripour, Hertel, Tyner, Beckman, and Birur, ). The model also provides a detailed representation of the economies of Canada, Mexico, and the United States, which along with the rest of the world (ROW) form the four regions of the model.…”

Section: Cge Model and Datamentioning

confidence: 99%

The effects on intraregional agricultural trade of ending NAFTA's market access provisions

Beckman

Zahniser

2018

Canadian J Agri Economics

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This paper explores the possible effects on agriculture of ending the market access provisions of the North American Free Trade Agreement (NAFTA). This paper considers two hypothetical scenarios: one revolving around a fallback to most-favorednation (MFN) tariff rates and the other considering the additional effect of increased transaction costs in intraregional trade. Results from a computable general equilibrium model indicate that applying MFN tariff rates to U.S.-Canada and U.S.-Mexico agricultural trade would lead to a 14.43% reduction in these trade flows, while a scenario also featuring higher transaction costs would bring an even larger reduction (21.25%). In both scenarios, almost every agricultural product experiences a reduction in bilateral trade, with U.S. agricultural exports to Mexico undergoing some of the largest proportionate decreases. Many sectors within North American agriculture would have lower output, including fruit and nuts, vegetables, oilseeds and vegetable oils, and processed foods in Canada; fruit, vegetables, and beef in Mexico; and poultry meat, pork, beef, and dairy products in the United States.

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Reducing transatlantic barriers on U.S.-EU agri-food trade: What are the possible gains?

Cited by 52 publications

References 21 publications

The Impact of TBT and SPS Measures on Japanese and Korean Exports to China

The Impact of TBT and SPS Measures on Japanese and Korean Exports to China

On the Evolution of Trade and Sanitary and Phytosanitary Standards: The Role of Trade Agreements

The effects on intraregional agricultural trade of ending NAFTA's market access provisions

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