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Abstract

Our study quantifies the economic impact of eliminating non-tariff measures in 13 APEC countries within the framework of GTAP simulation model, using the very preliminary estimates of tariff equivalents of NTMs. The three types of simulations are conducted for each APEC economy: a case with eliminating tariffs, a case with eliminating core NTMs, and a case with removing overall NTMs (core NTMs plus non-core NTMs). The results suggest that the removal of NTMs has a significant impact on the involved economies while the magnitude of the effect is smaller than that of removing tariffs. The results also suggest that the elimination of core NTMs has a larger effect on the welfare than that of removing non-core NTMs does.

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