Dynamics and Structure of Non-Tariff Measures Applied in International Trade (original) (raw)
Related papers
Taking Stock of Trade Protectionism Since 2008
2011
Following the onset of the financial crisis in September 2008 and the subsequent “Great Trade Collapse” (Baldwin 2009), many countries actively used trade policy instruments as part of their response to the global recession. Governments pursued a mix of trade liberalization, trade promotion, and trade restrictions. The choice of trade policy has varied, with limited use of tariff hikes or antidumping and safeguard actions. Sector-specific support to industries dominated initial responses to the crisis, and there has been increasing resort to nontariff measures. Recent research suggests that vertical specialization—the growth in global supply chains—has played a significant role in limiting the use of traditional protectionist instruments. Pressures on governments to support domestic economic activity may increase, given current gloomy economic prospects and more binding macroeconomic policy constraints, and the number of protectionist measures has recently risen. Open trade cannot b...
THE EFFECTS OF PROTECTIONIST POLICIES ON INTERNATIONAL TRADE
Globalisation, which is the most important feature of the new economic world order, reflects the elimination of all barriers to trade of goods and services among countries. Liberalisation of the international trade is the sine qua non condition of the new economic order. As the sources are limited and needs are limitless, no country can meet their needs with their own sources. Therefore, international economic relations are emerged as the most significant element of global foreign trade. Liberalisation movement has especially accelerated after the Second World War. Governments cannot implement any protectionist policy in terms of their interests as the practices that started with the General Agreement on Tariffs and Trade (GATT) and then continued with the World Trade Organisation (WTO) have restricted protectionist measures. Although free trade is robust in theory as a requirement of globalisation, in practice it is hard to see international trade of goods and services without any restriction. Thanks to international treaties, tariffs were reduced, however, invisible barriers to trade have emerged. Governments have usually applied protectionist policies, particularly following the global financial crises, though they engaged with the principles of globalisation. As long as protectionist policies have been implemented, neoliberal paradigm has temporarily shifted. Moreover, developing countries have difficulties as protectionist measures bring several standards in practice. It is therefore argued in this study that protectionist measures create a paradox in terms of free trade.
Unchanging protectionism in the post-ATC Era: Non-tariff measures
Journal of Business, Economics and Finance, 2022
Purpose-This study explores the importance of non-tariff measures (NTMs) in the global textile and clothing trade. For this purpose, we consider the trade effects of other NTMs implemented instead of the quotas that expired in 2005 with the WTO Textile and Clothing Agreement (ATC). These results indicate that the textile and clothing trade continues to be protected by other non-tariff measures during the quota-free period. Methodology-Based on the example of Turkey, the study examines the effects of anti-dumping measures (ADP) on imports in the quotafree period compared to customs duties by using OLS and PPML methods for the period 2000-2020. Findings-The estimations indicate that the ADP measure of NTMs is much more effective than the tariff rates. The import value of textile and clothing might decline by 2,7%-4,1% due to a percentage point increase in the tariff rates compared to a decrease of 22,6%-78,6% following an ADP measure. This effect would be 5,2%-5,8% with one percentage point increase of tariffs, whereas 29,2%-78,2% after an ADP for the import volume. Conclusion-The results reveal that the anti-dumping measures, which replace quotas, could restrict imports more than customs duties. Thus, the protectionism in the global trade of textile and clothing industry continues with other NTMs instead of quotas.
Proceedings of the international conference "Economic and Business Trends Shaping the Future"
As the importance of tariffs diminishes, to avoid underestimation, analysis of the dynamics of protectionism implies the use of more complex data. Hence, this research explores the Global Trade Alert database, which covers a wide range of measures used by countries within trade policy. Once the dynamics of protectionism in trade is presented, the analysis of its grounds might be undertaken to answer the question: what are the reasons for high levels of protectionist tendencies in the 21 st century? Is this a post-crisis repercussion only? Or is the failure of multilateral negotiations under the auspices of the WTO which, in turn, makes space for increased levels of protectionism? While many analyses highlight the indisputable impact of the crisis on the growing protectionist tendencies in the 21 st century, it has been over ten years since the crisis, which requires a search for alternate or additional premises. The hypothesis was therefore adopted that the failure of multilateral n...
The future of global trade in the presence of the Sino-US trade war
Economic and Political Studies, 2019
The looming of a vindictive spirit owing to dishevelled trade relations amidst China and the US seems to be near. Never has it been so apparent than now. The US has had itself as the largest economy on the world stage and China's attempt at shuffling this incumbency has led the US to open a tariff fire on Chinese imports. The tariff brawl appears to be not settling anytime soon as the retaliatory measures are swelling incessantly. Being the two largest economies of the world, giving in for disengaging trade with each other is bound to have a ripple effect on the global system of trade. Where the detesting to barrier-free trade on the part of the US and China are certain to inflict pain upon both countries, it might come as a benefit for other countries. This research explores the movement in global trade springing out of the Sino-US trade war.
MORE TRADE, MORE PROTECTION: INSIGHTS AND IMPLICATIONS OF THE UNENDING CONTRADICTION
2012
Despite the stance of the WTO and various RTAs, elements of trade protectionism remain prevalent. This could be understood by the divergence between countries’ national interests and international trade protocols, which was reverberated during the recent global financial crises. However, the contradiction has taken new turn following new protectionist instruments. Furthermore, the implication of these instruments on developing countries economy is prevalent. Thus, this study explores the likelihood to engage in trade protection and the implication on developing country, focussing on Africa. The study observes that in the first quarter of 2012 alone, the number of protective measures amounts to 67, with bail out and trade defence accounting for as much as 74%. Similarly, from 2009 to 2011, trade defence mechanisms and bailout accounted for 25% of the protective measures; while tariff and non-tariff are also frequently used, jointly constituting about 28.11%. The study reveals that a country’s level of economic development is not a fundamental determining factor with regards to its tendency to engage in trade protectionism. However, the study establishes among others that as a country’s institutional quality improves, the less the tendency of being involved in protectionism. Paradoxically, the more a country’s trade integration, the higher its tendency towards protectionism, which might be alluded to the fact that when a country trades more, it has more interest to protect as major complainants of trade cases are also major traders. The study reveals that a country’s per capita income growth was significantly and adversely affected by the contemporary protectionism. It impacts negatively on trade balance; however, such impact was essentially significant for African countries.
Protectionism Sources of Trade Disputes Within International Economic Relations
Management Theory and Studies for Rural Business and Infrastructure Development, 2021
Peculiarities of modern intercountry trade disputes and their subject-object characteristics, protectionist methods due to the COVID-19 pandemic have been studied in the article. The purpose of the article is to study the features and tools for the implementation of modern interstate trade disputes in the context of strengthening protectionist policies and the spread of the COVID-19 crisis. The research methodology is presented by historical and logical method, statistics and graphic methods, comparative method, correlation regression method, forecasting method, method of theoretical generalization have been used in the article. Dominance and detecting protectionism policy within the process of protecting national markets of goods from international competition have been highlighted and manifestation form of protectionism actions has been defined. Quantitative and qualitative assessment of trade disputes of countries within WTO has been carried out; their subject-object characteristics have been defined; major tools of the most active member countries being a complainant or a respondent have been analyzed. It has been discovered that the largest number of disputes have taken place between the USA and the EU, the USA and China, and China and the EU; methods and tools for trade disputing between the above mentioned countries were identified.