Impact of Technical Barriers to Trade and Sanitary and Phytosanitary Measures on Pakistan Exports
Journal Title: Research Journal Social Sciences (Online) - Year 2017, Vol 6, Issue 2
Abstract
Technical barriers to trade (TBT) and sanitary and phytosanitary (SPS) measures are two major tools of non-tariff barriers set by world trade organisation (WTO) and should strictly followed by WTO member countries. These NTBs are set by WTO for safety of food, human, animal, plants and environment. In global competitive market producers/countries can maintain their trade position and trade volume only if they follow WTO rule set for quality and standards of products. These non-tariff barriers have promoted as well as restrict trade. As exports in any country promotes not only because of demand and supply of products but it depends on correct functioning of all micro and macroeconomic policies. This paper discusses the role of Pakistan macroeconomic policies that facilitate trade and redefine the prosperity paths in changing global and local economies. Currently CPEC a big opportunity for Pakistan but its challenge for Pakistan to promote its exports in the presence of non tariff barriers. We analysed impact of these NTBs on trade between Pakistan and its top export partners that are U.S.A, China, and U.A.E, using HS-2 digit code data. To quantify TBT and SPS measures we employ coverage ratio and frequency index, Coverage ratio captures the extent of exports covered by SPS and TBT, whereas frequency index considers the presence/absence of the SPS and TBT in a product without indicating the value of exports covered. As these all countries are member of WTO and follow its standards regarding quality of products, so they constantly uses technical barriers to trade (TBT) and sanitary and phytosanitary (SPS) measures against imports from Pakistan. Literature shows TBT imposed by importer on Pakistan’s exports has positively affected the export performance while SPS discourage exports. In this research paper, we constructed SPS and TBT database from 2003-2016 to examine the influence of NTBs initiated as well as enforced on exports of Pakistan, and compare impact of tariff and non tariff barriers (TBT and SPS) on exports of Pakistan. A separate effect of these NTBs on manufacturing and agriculture sectors is also analysed. The frequency index and export coverage ratio shows that TBT measure promoted exports of manufacturing sector while SPS also promote exports of agriculture sector. The data set is sourced by WTO, UN Comtrade, and WDI.
Authors and Affiliations
NOOR- HERA, SAIMA SHAFIQUE, AMIR MUSTAFA
Keywords
Related Articles
- EP ID EP255545
- DOI -
- Views 108
- Downloads 0
Awareness about Reproductive Health Issues among Youth in Pakistan
Pakistan has one of the largest groups of young people, with approximately 25 million adolescent and youth between the ages 15-24 years. The agonizing fact remains that more than 20 million adolescent and youth in their...
An Empirical Analysis of Passenger Rail Demand in Pakistan
This study identifies the major determinants of passenger rail demand along with forecasting performance in case of Pakistan. The data set covered annual observations over the period from 1980 to 2012. To examine the sho...
Socioeconomic and Environmental Factors Affecting House Rents in Islamabad
Socioeconomic and environmental factors play an important role in determining the housing prices. This study investigates both socioeconomic and environmental factors that influence the rental price of housing in Islamab...
Development and Performance of TVET: Analysis of Pakistan
Technical Vocational Education and Training (TVET) is pivotal for the achievement of socio-economic well beings along with proper utilisation of work force in the development process of the country. Efficient working of...
The Impact of Trade Cost on Exports of Pakistan: An Empirical Modelling
This study takes into the account effect on exports going from Pakistan by key trading partners , tariff imposed by exporting partners, population within and outside Pakistan, distance with trading partner and exchange r...