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Book part
Publication date: 17 June 2024

Nassir Ul Haq Wani

The benefits of global trade are primarily attributed to reducing trade distortions between trading partners. The anticipated promise of a progressive diminution in tariffs…

Abstract

The benefits of global trade are primarily attributed to reducing trade distortions between trading partners. The anticipated promise of a progressive diminution in tariffs throughout the globe was, regrettably, steadily superseded by non-tariff measures (NTMs). However, the impact of these NTMs is only sometimes evident since it occurs in various disguises. NTMs significantly influence trade in the SAARC, mandating prompt attention. The question is how much internal trade will expand if NTMs are repealed. Based on statistics from 2015 to 2020, the study endeavours to quantify the impact of NTMs on Afghanistan's trade volume within the SAARC region, primarily targeting four export destinations (Bangladesh, India, Pakistan and Sri Lanka). Using trade freedom scores as a proxy for trade distortions, it has been determined that Afghanistan's magnitude of export earnings is significantly lower due to NTMs imposed by its importing trading partners. According to the findings, a 1% rise in tariffs and NTMs applied by importing countries diminishes Afghanistan's exports by 1.23%.

In contrast, the impact of tariffs alone lowers Afghanistan's exports by 1.13%. The incidence of NTMs also devoid actual Afghanistan exports by US$ 5.70 million, equal to a 0.029% loss of Afghanistan's GDP. The calculations also reveal that lowering or eliminating non-tariff barriers has diverse trade growth effects in different trade groupings. The study recommends a serious NTM-oriented trade policy dialogue that is liberal and guarantees regional integration, thereby promoting and ensuring the future of Afghanistan's economic laurels and stability.

Details

Policy Solutions for Economic Growth in a Developing Country
Type: Book
ISBN: 978-1-83753-431-9

Keywords

Article
Publication date: 1 March 1991

Lee D. Dahringer

Focuses on the international marketing of services and the need forservice marketers to be aware ofbarriers to international marketingunique to the service sector, as well as of…

2575

Abstract

Focuses on the international marketing of services and the need for service marketers to be aware ofbarriers to international marketing unique to the service sector, as well as of management strategies for overcoming such barriers. Describes fundamental barriers to the successful international marketing of services. Includes a discussion of the significance of GATT. Explores managerial implications of tariff and non‐tariff barriers for international services marketing.

Details

Journal of Services Marketing, vol. 5 no. 3
Type: Research Article
ISSN: 0887-6045

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Article
Publication date: 1 August 2001

Keith Maguire

Analyses some of the hidden barriers in exporting to Japan. It looks at Japanese industrial organisation and the role of the large corporations in controlling import and…

4281

Abstract

Analyses some of the hidden barriers in exporting to Japan. It looks at Japanese industrial organisation and the role of the large corporations in controlling import and distribution outlets. The Japanese wholesale and distribution system is much larger than would be the case in Europe or North America. There are also differences in patterns of consumer behaviour in Japan compared to Europe. Japan’s Ministry of International Trade and Industry also plays a more active role in the business environment. Also examines the problems involved with negotiating with the Japanese. It looks at a number of the obvious sources of confusion and misunderstanding between Japanese and Westerners during the negotiation process.

Details

European Business Review, vol. 13 no. 4
Type: Research Article
ISSN: 0955-534X

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Article
Publication date: 26 July 2011

Gordhan K. Saini

This paper attempts to examine the implications of non‐tariff measures (NTMs) on firms' international business operations through a survey of India's textiles and clothing…

Abstract

Purpose

This paper attempts to examine the implications of non‐tariff measures (NTMs) on firms' international business operations through a survey of India's textiles and clothing exporting firms. The main objectives of the study are to identify and assess the impact of NTMs, and analyze the cost incurred in complying with them.

Design/methodology/approach

This paper is based on the survey which was jointly undertaken with the Market Research Division of Textiles Committee, Mumbai.

Findings

The results reveal that the EU and USA‐based buyers are more restrictive with significantly higher NTM incidences. The technical barriers, product and production process standards, and conformity assessment requirement for technical barriers are the widely used NTM categories. The compliance expenditure may vary according to firm size, and an inverse relation is revealed by this study. The larger and smaller firms demonstrate important differences in compliance due to their varying resource endowments. Further, the regression results suggest that the US and EU markets and firms' product profile/type are an important determinant of compliance cost.

Originality/value

This study contributes to the understanding about the implications of NTMs on Indian firms, and the inferences may be tested in other similar Asian markets. However, a further empirical validation of the issues such as NTMs as promotion and marketing tools is warranted.

Details

Journal of Asia Business Studies, vol. 5 no. 2
Type: Research Article
ISSN: 1558-7894

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Article
Publication date: 1 August 1999

Alan Zimmerman

Barriers, especially non‐tariff barriers (NTBs), have been shown to have an important impact upon international trade in services. Foreign direct investment and market entry…

6072

Abstract

Barriers, especially non‐tariff barriers (NTBs), have been shown to have an important impact upon international trade in services. Foreign direct investment and market entry strategy theory do not adequately address the importance of NTBs in the decision‐making process. Previous studies indicate that service firms need to establish local presence to be successful in a foreign market. Where firms are unable to enter a market because it is blocked by trade barriers, some researchers suggest managers engage in specific entry strategies or strategic actions to overcome barriers. This study, based on in‐depth interviews with insurance executives, shows that trade barriers are one of several factors managers evaluate when deciding whether to enter a market. However, barriers can become a critical factor if they create prohibitive costs or difficulties. Based on the findings, this study proposes a new model of market entry decision making which hypothesizes that barriers can become a go/no‐go decision factor.

Details

Journal of Business & Industrial Marketing, vol. 14 no. 3
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 1 February 2003

Robert Eyler

Direct shipping laws restrict the amount of wine traded between states in the United States as well as international trade in the wine industry. The effects of these laws are…

Abstract

Direct shipping laws restrict the amount of wine traded between states in the United States as well as international trade in the wine industry. The effects of these laws are twofold. First, they restrict consumer choice, through higher prices and fewer goods available. This is the classic way in which barriers to trade reduce consumer and societal welfare. For the international wine company, marketing and distribution costs rise due to the fact that certain markets are not directly available. For all potential exporters to the US. these direct shipping laws add to difficulty in competing and reduce availability. The data show that the elimination of the laws would reduce prices, increase quantities sold, and increase competition in wine, especially through direct shipping. These laws affect firm choice on product delivery and market penetration.

Details

International Journal of Wine Marketing, vol. 15 no. 2
Type: Research Article
ISSN: 0954-7541

Keywords

Book part
Publication date: 17 June 2024

Nassir Ul Haq Wani

The trading expenses encountered domestically and across borders have a detrimental influence on global trade. Higher trade costs hamper trade and limit the benefits of trade…

Abstract

The trading expenses encountered domestically and across borders have a detrimental influence on global trade. Higher trade costs hamper trade and limit the benefits of trade liberalisation. The current research applies Novy's micro-founded trade cost measure (2013) to estimate global trade costs connected with Afghanistan, along with the factors that influence trade costs. Based on the investigation, trade in agriculture costs is significantly higher compared to the non-agricultural. As a consequence, focusing on agricultural trade facilitation would be advantageous.

Furthermore, enhancing and expediting trade facilities in trading areas are top priorities for government intervention to reduce trade costs. Focusing on free trade agreements and better shipment communication with trade partners increases transportation routes efficiently, cutting time and other expenses. The study proposes that the World Trade Organization's trade facilitation agreement be effectively implemented, administrative burdens at entry points minimised, non-tariff barriers (NTBs) be simplified and harmonised and soft infrastructures be established utilising current technologies.

Details

Policy Solutions for Economic Growth in a Developing Country
Type: Book
ISBN: 978-1-83753-431-9

Keywords

Expert briefing
Publication date: 18 July 2022

After leaving the EU, London is attempting to negotiate FTAs with its major trading partners. The GCC states are trying to diversify their economies from hydrocarbon-dependence.

Article
Publication date: 23 January 2024

Edirimuni Nadeesh Rangana de Silva

South Asia is a region urgently seeking development, although it has failed in regional integration. It is the second least integrated region regarding the number of Free Trade…

Abstract

Purpose

South Asia is a region urgently seeking development, although it has failed in regional integration. It is the second least integrated region regarding the number of Free Trade Agreements (FTAs) and can thus be recognised as a missing bloc in the global multilateral system. This study aims to focus on South Asian FTAs and explores the problems of the inter-relations and compatibility between the systemic and regional trade systems.

Design/methodology/approach

The study proposes a framework to benchmark the compatibility of South Asian FTAs with WTO rules. Primary data from 2000 to 2020, including descriptive analyses of reports, legal text of the FTAs, official documents and factual presentations, have been collected and analysed through thematic analysis using the proposed framework.

Findings

The study finds that, although South Asian FTAs meet most of the WTO requirements, they are not progressing toward facilitating and promoting trade. Data from 2000 to 2020 show us that South Asian FTAs have not significantly impacted trade between themselves. The study argues that, although South Asian FTAs fulfil some benchmarks, they show only a lukewarm interest in contributing to the international trading system as building blocs. It is therefore recommended that the case of South Asian trade liberalisation must be understood contextually and be given careful and exclusive attention by the WTO.

Originality/value

As such, this study is the first to claim that South Asian FTAs are not fully compatible with the WTO rules. They remain a missing regional bloc in the multilateral system, rather than a building bloc or a stumbling bloc, delaying the region’s opportunity to develop as a region and within the larger system.

Details

Journal of International Trade Law and Policy, vol. 23 no. 1
Type: Research Article
ISSN: 1477-0024

Keywords

Expert briefing
Publication date: 4 July 2018

US President Donald Trump last month targeted Canada’s supply management system for dairy, poultry and eggs as an example of unfair restrictions on agricultural exports to that…

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