Quantifying NTBs

Abstract

This chapter presents results of the partial equilibrium analysis of NTBs and their effects on the manufacturing sector in Uganda. Its focus is on the static or barrier removal effects as opposed to the long-term market integration effects. The main objective is to attach identifiable costs to existing NTBs within the EAC. In particular, the simulation attempts to measure the impact of NTBs on selected inputs and finished products relevant to the manufacturing sector. The chapter is organized as follows: the first section presents an overview and review of barrier removal effects, together with an outline of the welfare areas to be quantified. This is followed by a presentation of the cost effects of barrier removal. The second section presents results of the partial equilibrium simulation at an aggregated level for Uganda, the EAC and the RoW. The results at the sectoral and product levels are then presented followed by an estimation of the overall cost of trade barriers within the sector. The third section discusses the impact of NTB removal as presented in the simulations from a domestic, regional (intra-EAC trade) and external trade perspective, economic welfare in Uganda, industry growth and efficiency and the creation of a competitive environment. The fourth concludes the chapter.