Poultry is the second most consumed meat in the world and the most traded livestock commodity by volume. Much of this trade is driven by rising demand in developing country markets; as such, poultry trade is expected to continue to grow over the next decade as incomes increase in these countries. However, poultry trade is among the most heavily protected agricultural sectors in terms of tariffs and tariff rate quotas (TRQs). In addition, many nontariff measures (NTMs) limit or even prohibit poultry trade. This report combines data on World Trade Organization (WTO) poultry NTM notifications with domestic and international poultry trade flows to estimate whether and to what extent different types of NTMs affect the value of poultry trade. The results suggest that, on average, nondiscriminatory poultry NTM initiations notified to the WTO have a small positive effect on the value of international poultry trade compared to domestic poultry trade. In aggregate, this finding suggests that the trade facilitation effect dominates, but this may not be the case for any individual NTM or country pair. This study also finds that the effects of WTO notifications appear to vary by importer region.
Details
Title
Evaluating the Effects of Nontariff Measures on Poultry Trade
Record Identifier
https://ageconsearch.umn.edu/record/342470
Language
English
Total Pages
34
Note
This report estimated whether and to what extent different types of nondiscriminatory poultry NTMs affect the value of international poultry trade relative to domestic poultry trade. Our approach incorporated advances in the gravity model literature by including domestic trade flows to enable the identification of the effects of nondiscriminatory NTMs. The model also accounted for other factors that influence poultry trade, such as country characteristics and other trade policies. This study estimated the separate overall effects of SPS and TBT notifications to the WTO. To examine regional heterogeneity, this study allowed the estimated effects of nondiscriminatory NTMs to vary by importer region. The report’s estimates evaluated the effects of poultry-related notifications to the WTO on international poultry trade compared to domestic poultry trade. It did not evaluate the effects of specific NTM measures on individual countries, nor did it identify the effects of any bilateral NTMs that may be implemented between trading partner pairs. The report’s estimates reflected the average effect across all nondiscriminatory SPS and TBT chicken meat WTO notifications; results may vary when focusing specifically on NTMs identified as trade barriers.
