Methods to Evaluate Non Tariff Measures on Trade

Methods to Evaluate Non duty Measures on wadNon-duty measures are touchy to quantify as Tariff levels are published in tariff schedules, and these potty be large, cumbersome and difficult to read. Non-tariff measures are politic on the wholey beautiful and this may arise from the lobby activity of vested interests. Measures that are difficult to cast may to a fault be less transparent, which helps to prevent public discussion. some(prenominal) techniques may be used to evaluate the effect of non tariff measures for pillowcase data sourcesInformation about the effects on NTMs can be gathered through different databases such as the 2013 discip track Trade Estimate Report on Foreign Trade Barriers which is nonionised each year by the Office of the U.S. Trade Representative to surveys all classical(p) foreign barriers to U.S. exports, the European Unions Market Access Database, land Trade Organizations (WTO) Trade Policy Reviews and the area Integrated Trade Solutions (WI TS) software developed by the beingness Bank which is described as Vald manole as a substance abuser friendly way .price gap measuresNon-tariff measuresincrease thepricepaidby consumers. The basic strategy manner involves a comparison of prices earlier an d afterwards the NTM mark up where the difference is show as a Tariff equivalent. For example, the price of a product includes the represent of transport and insurance while whole exchange of retail prices include the woo of transport. These factors must be removed from the observed price difference before the markup can be attributed to non-tariff measures.(Ferrantino,2006).Econometrics modelThe notable advantage of econometric analysis, sexual relation to the price gapmethod, is that it can be used to study the dispense effects of multiple non-tariff measures across multiple industries and countries simultaneously. They forecast that the price of handle between any two countries testament be positively associate to the size of their economies and inversely connected to the distance (and other measures of deal out costs)between them.Measures interpreted by the giving medication to alleviate the impact of Non Tariff barriersMauritius has effectively change its economic activities from a monocrop economy depending on sugar to an economy establish on textile, tourism and financial services. Mauritius is regarded as a middle income domain and ranks according the recent Human Development Index for 173 countries, Mauritius was ranked mo in Africa. (Wikipedia)However, Non tariff measures are affecting Mauritanian Trade. A shop class was organized on the 24 January 2013 by the International Trade relate (ITC) with the collaboration of the Mauritian Ministry of Foreign Affairs, where the core results about non-tariff measures (NTMs) affecting Mauritian exporters were discussed, along with solutions and potential policy options.The ICTs NTM Program Manager Poonam mayhem claimed that Though Mauritian companies enjoy preferential access in the EU market, they complained about the technical and conformity assessment requirements which they find cumbersome in these markets. Labelling, namely the need for labelling in various languages, was similarly considered to be an important non-tariff barrier (Anon 2013). Moreover, a report claimed that 29% of burdensome NTMs were encountered within COMESA in which Mauritius is a member .Thus ,in order to alleviate this problem, the government has clear-cut to take concrete measures to eliminate Non Tariff Barriers that are unjustified. The measures were announced by the Dr. the Hon. A. Boolell, curate of Foreign Affairs, Regional Integration and International Trade at the opening of the Workshop on NTBs in September 2013.The measures are as follows To eliminate some 26 trade measures considered as NTBs after a study carried out by Strataconsult which identified those non tariff measures that project no justification and had to be either s treamlined or eliminated., relating principally to import and export procedures in 2012.The launching of the Mauritius Trade Portal to endue businesses by granting with all the relevant information concerning the import and export procedures. A more ambitious project currently being developed is the virtuoso window that will link all Government agencies concerned with trade procedures the objective being for traders to complete all trade procedures on line(Anon 2013). This system will help to meaningfully eliminate the quasi nub of Non Tariff Barriers in Mauritius.The Government is also collaborating with the International Trade pore to carry out a survey with organizations to examine the factors affecting trade. reside time for the release of goods at the port and airport have been importantly improved since the construction of a one stop center by housing Customs and other agencies under one roof.The Ministry with the collaboration of the knowledge base Bank has codified al l existing NTBs so as to facilitate their streamlining or elimination. Some people from the World Bank was in Mauritius recently to help us in setting the permanent data collection tool on NTMs, modelled on a new compartmentalization method that is more user friendly.Other measures taken by the governmentCOMESA-EAC-SADC Training WorkshopIn addition , the COMESA-EAC-SADC Training Workshop was also organized and targeted at enabling trade on Non-Tariff Barriers. Mauritius is ranked first base in Sub-Saharan Africa in the Ease of Doing Business power of the World Bank. Mauritius is rated 20th globally in the Ease of Doing Business index of the World Bank, 2nd among SIDS economies and is in the top 10 worldwide for the ease of starting a business. We need to eliminate all weaknesses and difficulties to trade so as to gain more markets since no markets will be at risk if the needs of consumers are satisfied .The World Bank Database on Non Tariff MeasuresMoreover, The World Bank Databa se on Non Tariff Measures (NTMs), including a catalogue of some 6 000 tariff lines, was given to the Minister of Foreign Affairs, Regional Integration and International Trade, Dr. Arvin Boolell, by the Ag res publica Director of the World Bank, Mr. Constantine Chikosi, recently. The Database will allow Mauritius to carry out a regular study of the effects of NTMs on trade and competitiveness.It also facilitates exports by improving information on NTMs in export markets. It proposes the government with undeniable data to implement the right policies that improve the investment climate in competitiveness of Mauritian businesses.Measures taken in other countries are as followsElimination of NTMS in the EUThe elimination of NTMs in the EU is based on three principles (i) non discrimination (ii) mutual quotation (iii) Community legislation to the functioning of the common market(Carrre Jaime 2011). These determine protect the movement for goods, persons, services and capital and is the result of the abolition of customs duties, QRs, and measures having equivalent effect to customs duties(Malouche et al. 2012). In addition, according to the European Commission, On 25 March 2013, the EU and Japan officially launched the negotiations for a unloosen Trade Agreement, which calls for the removal of EU duties and non-tariff barriers in Japan to merge together. They also enable the EU side to interrupt negotiations after one year if Japan does full fill its commitments to remove non-tariff barriers.Elimination of NTMs in IndiaIndia signed a framework contract for setting a isolated trade area with Thailand in October 2003. The agreementis similar toIndia-ASEANfree trade agreement. It also says that FTA should grok (i)Non-tariff barriers (NTBs)imposed onany products covered in this Agreement,including, butnot limited toquantitative restrictions or prohibition on the importee of any product or on the export or sale for export of any products.(ii)Safeguards based o n the GATT/WTO principles (iii) Disciplines on subsidies and countervailing measures and anti-dumping measures based on the existing GATT discipline. The Government Oof India has also taken some internal measures handle the instance, import restrictions levied certain products under Article XX.ReferencesAnon, 2014. European Commission. online available From http//ec.europa.eu/trade/policy/countries-and-regions/countries/japan/ Accessed 27June 2014Anon,2013. Non-tariff measures affecting Mauritian Trade. online getable From http//www.intracen.org/Non-tariff-measures-affecting-Mauritian-trade/ Accessed 27 June 2014Carrre.,C and Jaime (March 2011)Non-Tariff Measures What Do We Know, What Might Be Done?. MeloSource Journal of stinting Integration, Vol. 26, No. 1, pp. 169-196 Published by Center for Economic Integration, Sejong University StableMalouche, M.,Cadot,O., Saez,S., 2012. Streamlining Non-Tariff Measures. online functional From http//www.scribd.com/doc/93203908/Streamlin ing-Non-Tariff-Measures Accessed 27 june 2014Anon 2014. EU and Japan exchange offer to open markets.online Available From http//www.euinjapan.jp/en/media/news/news2014/20140404/200044/Accessed 26 june 2014Bacchetta et al ,2012. 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