Abstract
The contribution shows the state of the art of “trade and non-tariff measures” debate in the agri-food sector. It provides an overview on trends in trade and in the level of policy interventions over the last decades, in order to shed lights on potential cause-effect relations. Comparing the evolution of trade and of non-tariff measures (NTMs) in agri-food sector, it appears that the pervasiveness of NTMs is likely to be strictly related to changes in trade patterns. Although the main scope of NTMs is to correct market inefficiencies, they may have a twofold role: trade catalysts or trade barriers. The potential relationships between trade and NTMs, however, differ across involved countries, products under regulation, and types of measure. Indeed, evidence from the empirical literature support either the “standards as catalysts” and the “standards as barriers” points of view. Our contribution aims at outlining how NTMs and trade influence each other.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
Martin (2018).
- 2.
Anderson and Martin (2005).
- 3.
Martin (2018).
- 4.
Trebilcock and Pue (2015).
- 5.
Bagwell and Staiger (2011).
- 6.
- 7.
Fernandes et al. (2017).
- 8.
Xiong and Beghin (2014).
- 9.
UN Comtrade (2017). See comtrade.un.org/data/ (last accessed 29 September 2017).
- 10.
Martin (2018).
- 11.
According to the United Nations’ country classification (2017), we consider Australia, Canada, the European Union (EU), New Zealand, and the United States (US) as Northern (developed) countries, and emerging economies of the group of BRIICS (Brazil, Russian Federation, China, Indonesia, India, South Africa), as well as other countries of Latin America (Argentina, Bolivia, Peru) and of the Northern and Central Africa (Congo, Egypt, Libya, Morocco, Tunisia) as Southern (developing) countries. They cover 77% of the global gross domestic product (GDP): in 2015, developed economies, BRIICS countries, Egypt, and Peru are listed as top 25% economies for level of GDP. All these economies have benefited from a general growth in global welfare from 1995 to 2015: in particular, Bolivia and Congo have more than quadrupled their GDPs, while Libya, Morocco, and Tunisia have tripled their GDPs (CEPII, 2017). See www.cepii.fr/CEPII/en/bdd_modele/bdd.asp (last accessed in 9 June 2017).
- 12.
UN Comtrade (2017). See comtrade.un.org/data/ (last accessed 29 September 2017).
- 13.
Henson et al. (2000).
- 14.
Disdier et al. (2015).
- 15.
Henson and Loader (2001).
- 16.
- 17.
See rtais.wto.org/UI/Charts.aspx# and ptadb.wto.org/ptaList.aspx (last accessed 12 January 2018).
- 18.
OECD (2015).
- 19.
Grant and Lambert (2008).
- 20.
- 21.
See www.globaltradealert.org/ (last accessed 15 March 2018).
- 22.
Arita et al. (2017).
- 23.
Fernandes et al. (2017).
- 24.
Grant and Arita (2017).
- 25.
UNCTAD (2012), p. 1.
- 26.
See trains.unctad.org/Forms/Analysis.aspx (last accessed 15 September 2017).
- 27.
Greenville (2015).
- 28.
- 29.
See trains.unctad.org/Forms/Analysis.aspx (last accessed 15 September 2017).
- 30.
- 31.
UNCTAD (2012), p. 7.
- 32.
See trains.unctad.org/Forms/Analysis.aspx (last accessed 15 September 2017).
- 33.
Grant and Arita (2017).
- 34.
See trains.unctad.org/Forms/Analysis.aspx (last accessed 15 September 2017).
- 35.
UNCTAD (2012).
- 36.
We analyse product categories, coded according to the Harmonised System (HS) 2-Digit Chapter Headings: meat (02), fish (03), dairy produce (04), edible vegetables (07), edible fruits and nuts (08), cereals (10), oil seeds and oleaginous fruits (12), preparation of meat and fish (16).According to the United Nations’ country classification (2017), we consider Australia, Canada, the European Union (EU), New Zealand, and the United States (US) as Northern (developed) countries, and emerging economies of the group of BRIICS (Brazil, Russian Federation, China, Indonesia, India, South Africa), as well as other countries of Latin America (Argentina, Plurinational State of Bolivia, Peru) and of the Northern and Central Africa (Congo, Egypt, Libya, Morocco, Tunisia) as Southern (developing) countries.
- 37.
See trains.unctad.org/Forms/Analysis.aspx (last accessed 15 September 2017).
- 38.
See trains.unctad.org/Forms/Analysis.aspx (last accessed 15 September 2017).
- 39.
Jongwanich (2009).
- 40.
See trains.unctad.org/Forms/Analysis.aspx (last accessed 15 September 2017).
- 41.
Athukorala and Jayasuriya (2003).
- 42.
Henson et al. (2000).
- 43.
Mehta and George (2003).
- 44.
UNCTAD (2012).
- 45.
- 46.
In line with Wacziarg (2001), countries’ trade openness ratio is computed as the sum of domestic agri-food imports and exports compared to the annual GDP. Domestic agri-food imports and exports refer to product categories meat (02), fish (03), dairy produce (04), edible vegetables (07), edible fruit and nuts (08), cereals (10), oil seeds and oleaginous fruits (12), preparation of meat and fish (16).
- 47.
See trains.unctad.org/Forms/Analysis.aspx (last accessed 15 September 2017).
- 48.
Swinnen (2016).
- 49.
Xiong and Beghin (2014).
- 50.
Swinnen (2017).
- 51.
Sheldon (2012).
- 52.
Swinnen (2016).
- 53.
Xiong and Beghin (2014).
- 54.
- 55.
- 56.
Swinnen (2016).
- 57.
Swinnen (2017).
- 58.
- 59.
- 60.
- 61.
- 62.
- 63.
Santeramo et al. (2019b).
- 64.
- 65.
- 66.
de Frahan and Vancauteren (2006).
- 67.
- 68.
E.g. de Frahan and Vancauteren (2006).
- 69.
- 70.
Schlueter et al. (2009), p. 1489.
- 71.
- 72.
- 73.
- 74.
- 75.
- 76.
- 77.
- 78.
Martin (2018).
- 79.
Santeramo (2019).
References
Anders S, Caswell JA (2009) Standards-as-barriers versus standards-as-catalysts: assessing the impact of HACCP implementation on U.S. seafood imports. Am J Agric Econ 91(2):310–321
Anderson K, Martin W (2005) Agricultural trade reform and the Doha Development Agenda. World Econ 28(9):1301–1327
Anderson K, Nelgen S (2012) Trade barrier volatility and agricultural price stabilization. World Dev 40(1):36–48
Arita S, Beckman J, Mitchell L (2017) Reducing transatlantic barriers on US-EU agri-food trade: what are the possible gains? Food Policy 68:233–247
Athukorala PC, Jayasuriya S (2003) Food safety issues, trade and WTO rules: a developing country perspective. World Econ 26(9):1395–1416
Bagwell K, Staiger R (2011) What do trade negotiators negotiate about? Empirical evidence from the World Trade Organization. Am Econ Rev 101(4):1238–1273
Beckman J, Arita S (2016) Modeling the interplay between sanitary and phytosanitary measures and tariff-rate quotas under partial trade liberalization. Am J Agric Econ 99(4):1078–1095
Cardamone P (2011) The effect of preferential trade agreements on monthly fruit exports to the European Union. Eur Rev Agric Econ 38(4):553–586
CEPII (2017) Available at: http://www.cepii.fr/CEPII/en/bdd_modele/bdd.asp
Chen C, Yang J, Findlay C (2008) Measuring the effect of food safety standards on China’s agricultural exports. Rev World Econ 144(1):83–106
Chevassus-Lozza E, Latouche K, Majkovic D, Unguru M (2008) The importance of EU-15 borders for CEECs agri-food exports: the role of tariffs and non-tariff measures in the pre-accession period. Food Policy 33(6):595–606
Cioffi A, Santeramo FG, Vitale CD (2011) The price stabilization effects of the EU entry price scheme for fruit and vegetables. Agric Econ 42(3):405–418
Crivelli P, Gröschl J (2016) The impact of sanitary and phytosanitary measures on market entry and trade flows. World Econ 39(3):444–473
Dal Bianco A, Boatto VL, Caracciolo F, Santeramo FG (2016) Tariffs and non-tariff frictions in the world wine trade. Eur Rev Agric Econ 43(1):31–57
de Frahan BH, Vancauteren M (2006) Harmonisation of food regulations and trade in the single market: evidence from disaggregated data. Eur Rev Agric Econ 33(3):337–360
Disdier AC, Marette S (2010) The combination of gravity and welfare approaches for evaluating non-tariff measures. Am J Agric Econ 92(3):713–726
Disdier AC, Fontagné L, Cadot O (2015) North-South standards harmonization and international trade. World Bank Econ Rev 29(2):327–352
Drogué S, DeMaria F (2012) Pesticide residues and trade, the apple of discord? Food Policy 37(6):641–649
Essaji A (2008) Technical regulations and specialization in international trade. J Int Econ 76(2):166–176
Fernandes AM, Ferro E, Wilson JS (2017) Product standards and firms’ export decisions. World Bank Econ Rev (in press)
Ferro E, Otsuki T, Wilson JS (2015) The effect of product standards on agricultural exports. Food Policy 50:68–79
Fontagné L, Mayer T, Zignago S (2005) Trade in the triad: how easy is the access to large markets? Can J Econ 38(4):1401–1430
Global Trade Alert (2018) Available at: https://www.globaltradealert.org/
Grant JH, Arita S (2017) Sanitary and phyto-sanitary measures: assessment, measurement, and impact. IATRC Commissioned Paper 21:1–53
Grant JH, Lambert DM (2008) Do regional trade agreements increase members’ agricultural trade? Am J Agric Econ 90(3):765–782
Greenville J (2015) Issues in agricultural trade policy: an overview. In: Issues in Agricultural Trade Policy: Proceedings of the 2014 OECD Global Forum on Agriculture, May
Harrigan J (1993) OECD imports and trade barriers in 1983. J Int Econ 34(1–2):91–111
Henson S, Loader R (2001) Barriers to agricultural exports from developing countries: the role of sanitary and phytosanitary requirements. World Dev 29(1):85–102
Henson S, Brouder AM, Mitullah W (2000) Food safety requirements and food exports from developing countries: the case of fish exports from Kenya to the European Union. Am J Agric Econ 82(5):1159–1169
Hoekman B, Nicita A (2008) Trade policy, trade costs, and developing country trade. World Dev 39(12):2069–2079
Ivanic M, Martin W (2014) Implications of domestic price insulation for global food price behavior. J Int Money Financ 42:272–288
Jayasinghe S, Beghin JC, Moschini GC (2010) Determinants of world demand for U.S. corn seeds: the role of trade costs. Am J Agric Econ 92(4):999–1010
Jongwanich J (2009) The impact of food safety standards on processed food exports from developing countries. Food Policy 34(5):447–457
Koo WW, Kennedy PL, Skripnitchenko A (2006) Regional preferential trade agreements: trade creation and diversion effects. Appl Econ Perspect Policy 28(3):408–415
Lambert D, McKoy S (2009) Trade creation and diversion effects of preferential trade associations on agricultural and food trade. J Agric Econ 60(1):17–39
Martin W (2018) A research agenda for international agricultural trade. Appl Econ Perspect Policy 40(1):155–173
Mehta R, George J (2003) Processed food products exports from India: an exploration with SPS regime. Country report prepared under the ACIAR Project, International Food Safety Regulation and Processed Food Export from Developing Countries. Research Information Systems and the Australian National University, Delhi
Melo O, Engler A, Nahuehual L, Cofre G, Barrena J (2014) Do sanitary, phytosanitary, and quality-related standards affect international trade? Evidence from Chilean fruit exports. World Dev 54:350–359
OECD (2015) Regional trade agreements and agriculture. OECD Food, Agriculture and Fisheries Papers, No. 79. OECD, Paris
Olper A, Raimondi V (2008) Explaining national border effects in the QUAD food trade. J Agric Econ 59(3):436–462
Otsuki T, Wilson JS, Sewadeh M (2001a) What price precaution? European harmonization of aflatoxin regulations and African groundnut exports. Eur Rev Agric Econ 28(2):263–283
Otsuki T, Wilson JS, Sewadeh M (2001b) Saving two in a billion: quantifying the trade effect of European food safety standards on African exports. Food Policy 26(5):495–514
Peterson E, Grant JH, Roberts D, Karov V (2013) Evaluating the trade restrictiveness of phytosanitary measures on US fresh fruit and vegetable imports. Am J Agric Econ 95(4):842–858
RTA-IS (2018) Available at: https://www.wto.org/english/tratop_e/region_e/region_e.htm
Santeramo FG (2019) On non-tariff measures and changes in trade routes: from north-north to south-south trade? IATRC Commissioned Paper, No. 938-2019-1580
Santeramo FG, Cioffi A (2012) The entry price threshold in EU agriculture: deterrent or barrier? J Policy Model 34(5):691–704
Santeramo FG, Lamonaca E (2019a) On the drivers of global grain price volatility: an empirical investigation. Agric Econ (AGRIECON) 65(1):31–42
Santeramo FG, Lamonaca E (2019b) The effects of non-tariff measures on agri-food trade: a review and meta-analysis of empirical evidence. J Agric Econ 71(1) (in press)
Santeramo FG, Lamonaca E (2019c) On the impact of non-tariff measures on export performances of African agri-food sector. Agrekon:1–18
Santeramo FG, Lamonaca E, Contò F, Nardone G, Stasi A (2018) Drivers of grain price volatility: a cursory critical review. Agric Econ (AGRIECON) 64:347–356
Santeramo FG, Guerrieri V, Lamonaca E (2019a) On the evolution of trade and sanitary and phytosanitary standards: the role of trade agreements. Agriculture 9(1):2
Santeramo FG, Lamonaca E, Nardone G, Seccia A (2019b) The benefits of country-specific non-tariff measures in world wine trade. Wine Econ Policy 8(1):28–37
Scheepers S, Jooste A, Alemu ZG (2007) Quantifying the impact of phytosanitary standards with specific reference to MRLs on the trade flow of South African avocados to the EU. Agrekon 46(2):260–273
Schlueter SW, Wieck C, Heckelei T (2009) Regulatory policies in meat trade: is there evidence for least trade-distorting sanitary regulations? Am J Agric Econ 91(5):1484–1490
Schuster M, Maertens M (2013) Do private standards create exclusive supply chains? New evidence from the Peruvian asparagus export sector. Food Policy 43:291–305
Sheldon I (2012) North–South trade and standards: what can general equilibrium analysis tell us? World Trade Rev 11(3):376–389
Shepherd B, Wilson NL (2013) Product standards and developing country agricultural exports: the case of the European Union. Food Policy 42:1–10
Shepotylo O (2016) Effect of non-tariff measures on extensive and intensive margins of exports in seafood trade. Mar Policy 68:47–54
Sun L, Reed MR (2010) Impacts of free trade agreements on agricultural trade creation and trade diversion. Am J Agric Econ 92(5):1351–1363
Sun D, Huang J, Yang J (2014) Do China’s food safety standards affect agricultural trade? The case of dairy products. China Agric Econ Rev 6(1):21–37
Swinnen J (2016) Economics and politics of food standards, trade, and development. Agric Econ 47(1):7–19
Swinnen J (2017) Some dynamic aspects of food standards. Am J Agric Econ 99(2):321–338
Trebilcock M, Pue K (2015) The puzzle of agricultural exceptionalism in international trade policy. J Int Econ Law 18:233–260
UN Comtrade (2017) Available at: https://comtrade.un.org/
UN Statistics Division (2018) Available at: https://unstats.un.org/unsd/databases.htm
UNCTAD (2012) International classification of non-tariff measures, February 2012 version (UNCTAD/DITC/TAB/2012/2). United Nations, New York
UNCTAD (2017) Available at: https://unctad.org/en/Pages/Home.aspx
Wacziarg R (2001) Measuring the dynamic gains from trade. World Bank Econ Rev 15(3):393–429
Wei G, Huang J, Yang J (2012) The impacts of food safety standards on China’s tea exports. China Econ Rev 23(2):253–264
Wilson JS, Otsuki T (2004) To spray or not to spray: pesticides, banana exports, and food safety. Food Policy 29(2):131–146
Wilson JS, Otsuki T, Majumdsar B (2003) Balancing food safety and risk: do drug residue limits affect international trade in beef? J Int Trade Econ Dev 12(4):377–402
WTO (2018) Available at: http://ptadb.wto.org/
Xiong B, Beghin JC (2011) Does European aflatoxin regulation hurt groundnut exporters from Africa? Eur Rev Agric Econ 39(4):589–609
Xiong B, Beghin JC (2014) Disentangling demand-enhancing and trade-cost effects of maximum residue regulations. Econ Inq 52(3):1190–1203
Yue C, Beghin JC (2009) Tariff equivalent and forgone trade effects of prohibitive technical barriers to trade. Am J Agric Econ 91(4):930–941
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2020 Springer Nature Switzerland AG
About this chapter
Cite this chapter
Santeramo, F.G., Lamonaca, E. (2020). The Role of Non-tariff Measures in the Agri-Food Sector: Positive or Negative Instruments for Trade?. In: Krämer-Hoppe, R. (eds) Positive Integration - EU and WTO Approaches Towards the "Trade and" Debate. European Yearbook of International Economic Law(). Springer, Cham. https://doi.org/10.1007/978-3-030-25662-3_3
Download citation
DOI: https://doi.org/10.1007/978-3-030-25662-3_3
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-25661-6
Online ISBN: 978-3-030-25662-3
eBook Packages: Law and CriminologyLaw and Criminology (R0)