Why NTM is a Challenge in Trade Relations? Evidence from India–Africa Agricultural Trade

2020 ◽  
Vol 12 (2) ◽  
pp. 79-103 ◽  
Author(s):  
Chandan Kumar ◽  
Nalin Bharti
Keyword(s):  
Bilateral Trade ◽  
Agricultural Trade ◽  
Rapid Expansion ◽  
Complex Nature ◽  
Trade Barriers ◽  
Trade Restrictions ◽  
Coverage Ratio ◽  
Agriculture Sector ◽  
Wide Range ◽  
Trading Partners

India and Africa have experienced the rapid expansion of bilateral trade during the last two decades. The India–Africa trade is understudied in general and in the agriculture sector. Very few considerable efforts have been made to study the agro-trade restrictions between both the economies. Therefore, the purpose of this paper is to empirically identify the recent evidence of non-tariff measures (NTMs) imposed on the agro-products between India and Africa, which also work as non-tariff barriers. It is perceived that India being one of the frequent users of NTMs in the world poses many challenges for its trading partners. Based on the Revealed Trade Barrier (RTB) index, using 28 agro-products (HS-4 digit level), this paper assesses bilateral agro-trade barriers. The frequency index ( Fi) and coverage ratio ( Cr) were used to analyse the complex nature of NTMs. The study findings show that both trading partners imposed a wide range of NTMs on each other’s agro-products, which resulted in the discriminatory effects on trade. Comparatively, India has imposed the lesser number of NTMs on Africa’s agro-products. Despite the recent bilateral trade agreements between both the economies, trade barriers were frequently noticed. The paper suggests applying strategic trade policies and reduction of NTMs along with harmonisation of standards to flourish the bilateral agro-trade.

Post-SAFTA NTMs for Agricultural Trade: Revelations from the India–South Asia Approach

2020 ◽  
Vol 56 (1) ◽  
pp. 117-135
Author(s):  
Chandan Kumar ◽  
Nalin Bharti
Keyword(s):  
South Asia ◽  
South Asian ◽  
Trade Agreement ◽  
Agricultural Trade ◽  
Trade Liberalisation ◽  
Trade Barriers ◽  
Asian Countries ◽  
Trade Restrictions ◽  
Coverage Ratio ◽  
Trade Potential

Commitment of South Asian Free Trade Agreement (SAFTA) from South Asian Preferential Trading Agreement (SAPTA) for trade liberalisation was one of the hopes in South Asia. This article highlights untapped trade potential in agro-trade between India and its trading partners in South Asia through Trade Potential Index (TPI). This article evaluates post-SAFTA effects of non-tariff measures (NTMs) on agro-products (HS 6-digit level) over the period 2004–2016. After 2004, many agro-products of South Asia have suffered trade restrictions which create challenges over SAFTA implementation. This article inquires whether NTMs in post-SAFTA has been trade creating or trade inhibiting in agro-trade for member countries as per the earlier commitments. Research methodology for this study includes qualitative and quantitative approach. Qualitative approach examines agri-trade constraints faced between India and rest seven South Asian countries and vice versa. Quantitative analysis explores prevailing trade barriers in selected agro-products during 2002–2016 applying Regional Trade Barrier Index and NTM Coverage Ratio. Results establish the presence of agri-trade barriers from South Asian countries against India as well as India’s barriers against rest seven countries of South Asia. Study concludes that agri-trade restrictions prevail in South Asia despite SAFTA which shows the slow process of trade liberalisation. JEL Codes: F13, F14, Q17

scholarly journals DEVELOPMENT OF CHINESE-KAZAKHSTAN TRADE IN AGRICULTURAL PRODUCTS WITHIN THE FRAMEWORK OF "ONE BELT, ONE WAY": FEATURES, FORMS OF COOPERATION AND PERSPECTIVES

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Haohe Zhang
Keyword(s):  
Bilateral Trade ◽  
Complex Dynamics ◽  
Economic Cooperation ◽  
Agricultural Trade ◽  
Agricultural Products ◽  
Trade Barriers ◽  
Starting Point ◽  
Trade Turnover ◽  
Belt And Road ◽  
Bilateral Cooperation

The "Оne Вelt, Оne Road" policy has brоught ecоnоmic and trаde relаtiоns between Chinа аnd Kаzаkhstаn closer in the field of agricultural products, adding new opportunities for development, and the volume of tradе has bеcomе stаblе and grоwing. Bilateral trade between China and Kazakhstan has shown new positive dynamics, where a unified trade structure is also noted. There are great development prospеcts in the field of agricultural products of the two countries. In this regard, the author points to a mega-project called the Belt and Road Initiative, which focuses on the current situation and characteristics of Sino-Kazakh agricultural trade. The article indicates some problems in the bilateral cooperation of the two states. Among these problems, the most important are noted. For example, the author notes that the situation with a large number of trade barriers prevents more Chinese and Kazakh enterprises from entering the market. As a starting point based on an analysis of the obstacles facing the development of bilateral agricultural trade, countermeasures should be taken to further deepen bilateral cooperation in agricultural trade. A set of proposals to mitigate the problems of economic cooperation between Kazakhstan and China are offered in the conclusion of the article. Key words: trade and economic cooperation, agrarian complex, dynamics of agricultural production growth, trade volume, trade turnover, trade barriers, RK, PRC.

Modeling bilateral forest products trade.

2021 ◽  
pp. 43-82
Author(s):  
Craig M. T. Johnston ◽  
Brad Stennes ◽  
G. Cornelisvan Kooten
Keyword(s):  
Bilateral Trade ◽  
Forest Products ◽  
The United States ◽  
Programming Models ◽  
Trade Barriers ◽  
Trade Restrictions ◽  
Price Equilibrium ◽  
Softwood Lumber ◽  
Trade Model ◽  
Spatial Price

Abstract The focus in this chapter is on the development of mathematical programming models used to model bilateral forest products trade. Theoretical outlines are provided of a multi-region, single product trade model and of an integrated, multi-region, multi-product trade model. The objective function and constraints are described mathematically, while the analysis takes into account horizontal and vertical chains and the need to calibrate the model using observed trade flows. Data sources are discussed, and the GAMS code is provided for the uncalibrated and calibrated versions of the model. The Canada-U.S. softwood lumber dispute is the raison d'être for much applied work in modeling forest products trade, especially on Canada's side. In this chapter, we examine several spatial price equilibrium (SPE) trade models that are currently used to investigate the implications of trade barriers imposed on Canadian exports of softwood lumber to the United States. The reason we consider bilateral trade is so that we can determine the impacts of trade restrictions on various regions in North America. We begin in the next section by specifying a general but vertically integrated SPE trade model.

scholarly journals Exchange Rate Dynamics and the Bilateral Trade Balance: The Case of U.S. Agriculture

2009 ◽  
Vol 38 (2) ◽  
pp. 213-228 ◽  
Author(s):  
Jungho Baek ◽  
Won W. Koo ◽  
Kranti Mulik
Keyword(s):  
United States ◽  
Exchange Rate ◽  
Bilateral Trade ◽  
Time Series Data ◽  
The United States ◽  
Agricultural Trade ◽  
Agricultural Products ◽  
Series Data ◽  
J Curve ◽  
Trading Partners

This study examines the dynamic effects of changes in exchange rates on bilateral trade of agricultural products between the United States and its 15 major trading partners. Special attention is paid to investigate whether or not the J-curve hypothesis holds for U.S. agricultural trade. For this purpose, an autoregressive distributed lag (ARDL) approach to cointegration is applied to quarterly time-series data from 1989 and 2007. Results show that the exchange rate plays a crucial role in determining the short- and long-run behavior of U.S. agricultural trade. However, we find little evidence of the J-curve phenomenon for U.S. agricultural products with the United States’ major trading partners.

Modeling bilateral forest products trade.

2021 ◽  
pp. 43-82
Author(s):  
Craig M. T. Johnston ◽  
Brad Stennes ◽  
G. Cornelisvan Kooten
Keyword(s):  
Bilateral Trade ◽  
Forest Products ◽  
The United States ◽  
Programming Models ◽  
Trade Barriers ◽  
Trade Restrictions ◽  
Price Equilibrium ◽  
Softwood Lumber ◽  
Trade Model ◽  
Spatial Price

Abstract The focus in this chapter is on the development of mathematical programming models used to model bilateral forest products trade. Theoretical outlines are provided of a multi-region, single product trade model and of an integrated, multi-region, multi-product trade model. The objective function and constraints are described mathematically, while the analysis takes into account horizontal and vertical chains and the need to calibrate the model using observed trade flows. Data sources are discussed, and the GAMS code is provided for the uncalibrated and calibrated versions of the model. The Canada-U.S. softwood lumber dispute is the raison d'être for much applied work in modeling forest products trade, especially on Canada's side. In this chapter, we examine several spatial price equilibrium (SPE) trade models that are currently used to investigate the implications of trade barriers imposed on Canadian exports of softwood lumber to the United States. The reason we consider bilateral trade is so that we can determine the impacts of trade restrictions on various regions in North America. We begin in the next section by specifying a general but vertically integrated SPE trade model.

scholarly journals The Impact of Trade Agreement on Agricultural Trade Flow in West Africa

2020 ◽  
Vol 13 (1) ◽  
pp. 89
Author(s):  
Christiana Manu
Keyword(s):  
West Africa ◽  
Free Trade ◽  
Bilateral Trade ◽  
Trade Flow ◽  
Trade Agreement ◽  
Trade Agreements ◽  
Agricultural Trade ◽  
Trading Partners ◽  
Short Run ◽  
The Impact

This paper analysed the impact of trade agreements on agricultural trade flow in West Africa. The study used 25 major trading partners of Ghana for 25 years between 1995 and 2019. Using the Gravity econometric model, this study finds that being a member of the trade agreement (FTA) is positively related to the aggregate flow of trade in agriculture. Trade agreements are found to increase trade flow with trading in agricultural products; especially trading partners in ECOWAS, if members agree on free trade in such products. The result shows that Ghana’s bilateral exports significantly increase with an increase in domestic and partner wages, and with distance, they decrease significantly. FTA was found to be a positive and significant determinant of Ghana’s bilateral trade in the long and the short run as well. Therefore, when there is a free trade agreement between countries, they tend to trade more among themselves than countries without the trade agreement.

scholarly journals China Shocks and Their Employment Effects in Emerging Economies

2020 ◽  
Vol 9 (1) ◽  
pp. 31-50
Author(s):  
Bambang Suprayogi ◽  
Tarek M Harchaoui
Keyword(s):  
Emerging Economies ◽  
Bilateral Trade ◽  
Supply And Demand ◽  
Job Destruction ◽  
Employment Effects ◽  
Job Demand ◽  
Supply Shock ◽  
Wide Range ◽  
Trading Partners ◽  
The Impact

The impact of “China shocks” on trading partners is a source of a massive supply shock that displaces foreign manufacturing producers, and an important source of demand shock that propelled forward a wide range of foreign sectors. The “common” existing literature mainly focused on the supply shock and its impact, leaving a large span of “China shocks” unexplained. Thus, this article undertake the important task to account for the dual track of “China shocks” and their impacts on a set of emerging economies, for which the evidence remains scanty. Using a global input-output methodology which highlights the job creation from exports and the job destruction aspect of imports, we provide evidence on the employment effect of bilateral trade with China. Our results suggest that considering the net effect of supply and demand related to China shocks mainly lead to negative job demand, and press the ringing bell for the government.JEL Classification: F1, F16, F66How to Cite:Suprayogi, B., & Harchaoui, T. M. (2020). China Shocks and Their Employment Effects in Emerging Economies. Signifikan: Jurnal Ilmu Ekonomi, Vol. 9(1), 31-50. doi: http://dx.doi.org/10.15408/sjie.v9i1.13550.

scholarly journals Znaczenie wymiany bilateralnej w handlu zagranicznym produktami rolno-spożywczymi UE i USA

2017 ◽  
Vol 17(32) (2) ◽  
pp. 199-210
Author(s):  
Karolina Pawlak
Keyword(s):  
Bilateral Trade ◽  
Free Trade Area ◽  
Food Products ◽  
Agricultural Trade ◽  
The European Union ◽  
Trade Area ◽  
The Us ◽  
Trading Partners ◽  
American Agriculture ◽  
The Eu

The aim of the paper was to assess the importance of the bilateral turnover to the EU and the US foreign trade in agri-food products in 2001-2016, as well as to define the possibilities of its development after signing the TTIP Agreement. The research is based on the data from the ComExt Database in the resources of the Statistical Office of the European Union (Eurostat) and the USDA Foreign Agricultural Service's Global Agricultural Trade System. It was proved that in 2001-2016 the EU and the US were important trade partners for each other, but the value of bilateral trade in agri-food products remained relatively small, largely due to low complementarity of the Polish and American agriculture and the resulting minor demand for agricultural products from the temperate zone in the US. These products are made in the US, usually at a lower cost, and they are the export surplus of this country. The way to intensify the EU-US bilateral trade may be to develop a transatlantic free trade area, resulting in a strong effect of trade creation between the TTIP parties, with a limited impact on the relationship with other trading partners.

An Analysis of Determinant Factors in Agricultural Trade between India and ASEAN

2021 ◽  
pp. 314-320
Keyword(s):  
Bilateral Trade ◽  
Agricultural Trade ◽  
Agricultural Products ◽  
Common Language ◽  
Trade Relation ◽  
Major Trading Partner ◽  
The World ◽  
Trading Partners ◽  
Variable Distance ◽  
The Common

Considering the significance of trade relation between India and ASEAN, the present study was conducted to analyze the determinants of India-ASEAN trade in agricultural products. This study incorporated HS 2-digit codes from 01 to 24 chapters, which constituted 85 percent of the total chapter falling under agricultural products. To perceive the significance of ASEAN as a major trading partner, shares of India's trade with ASEAN relative to the world was computed via trade intensity approach. Furthermore, the gravity model was employed to witness the determinants of agriculture trade between the two trading partners. The study found that the GDP of ASEAN and India, the common border between the two trading blocs, was positive and significant. The variable distance and landlocked was observed to be negative and significant, which confirmed that trade would decrease if distance increases and if the country was landlocked, respectively. Interestingly, variables like FTA, GDP of India, common language, and common colony showed no significant effect on the bilateral trade.

scholarly journals Asymmetric Trade Costs: Agricultural Trade among Developing and Developed Countries

2018 ◽  
Vol 15 (2) ◽  
Author(s):  
Jihyun Eum ◽  
Ian Sheldon ◽  
Stanley Thompson
Keyword(s):  
Developing Countries ◽  
Low Income ◽  
Agricultural Sector ◽  
Bilateral Trade ◽  
Developed Countries ◽  
Agricultural Trade ◽  
Trade Costs ◽  
Low Income Countries ◽  
Trade Model ◽  
Trading Partners

AbstractIn this article, the reasons why developing countries trade fewer agricultural products than developed countries are analyzed. Based on earlier findings that low trade volume in the agricultural sector is due to high trade costs, the focus is on evaluating the extent to which bilateral trade costs in the agricultural sector differ among trading partners. Using a neo-Ricardian trade model, the results show that systematically, asymmetric bilateral trade costs and variation in the level of agricultural productivity across all countries in the sample, are the main barriers to developing countries’ agricultural exports. In addition, low-income countries face higher trade costs to export than do high-income countries.

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