Tariff equivalent of technical barriers to trade with imperfect substitution and trade costs

Chengyan Yue, John C. Beghin, Helen H. Jensen

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

The price-wedge method yields a tariff-equivalent estimate of technical barriers to trade (TBT). An extension of this method accounts for imperfect substitution between domestic and imported goods and incorporates recent findings on trade costs. We explore the sensitivity of this revamped TBT estimate to its key determinants (substitution elasticity, preference for home good, and trade cost). We use the augmented approach to investigate the recent Japan-U.S. apple trade dispute and find that removing the Japanese TBT would yield limited export gains to the United States. We then draw policy implications of our findings.

Original languageEnglish (US)
Title of host publicationNontariff Measures and International Trade
PublisherWorld Scientific Publishing Co. Pte Ltd
Pages151-164
Number of pages14
ISBN (Electronic)9789813144415
ISBN (Print)9789813144408
DOIs
StatePublished - Nov 28 2016

Bibliographical note

Publisher Copyright:
© 2017 by World Scientific Publishing Co. Pte. Ltd.

Keywords

  • Apple
  • Dispute
  • Japan
  • SPS
  • TBT
  • Technical barriers
  • Trade
  • Wto

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