2 Feb 2015
Working Papers
Cadot, Olivier
NTMs, Preferential Trade Agreements, and Prices: New evidence
![NTMs, Preferential Trade Agreements, and Prices: New evidence](/media/filer_public_thumbnails/filer_public/cc/3c/cc3c042e-a37a-4958-81a7-a10376768b84/pta.jpg__400x800_q85_subsampling-2.jpg)
a working paper by Cadot and Gourdon
Combining for the first time a new dataset of non-tariff measures (NTMs) in 65 countries with the CEPII’s unit values database, we estimate average ad-valorem equivalents (AVEs) for SPS, TBT and other measures by section of the Harmonized System of product classification. While most existing AVEs are obtained from indirect quantity-based estimation, ours are obtained from direct price-gap estimation. They lie in a single-digit range, i.e. substantially lower than previous estimates based on older data. Our results may reflect the progressive phasing out of commandand- control instruments such as quantitative restrictions in many countries; they also suggest that sanitary and technical regulations have not substituted for them as trade-restrictive interventions. Most interestingly, we show that deep-integration clauses in regional trade agreements, in particular the mutual recognition of conformity-assessment procedures, substantially reduce the price-raising effect of NTMs, possibly reflecting lower compliance costs.
NTMs, Preferential Trade Agreements, and Prices: New evidence