The 2030 Agenda for Sustainable Development recognizes international trade as an engine for inclusive economic growth and poverty reduction, and an important enabler to achieve the Sustainable Development Goals (SDGs). The SDG framework explicitly recognizes different trade policy measures. Trade and trade related policies have a multifaceted link to the SDGs. In addition to the trade-growth economic development nexus, trade is strongly linked to sustainable development goals such as food safety, health, climate, labour conditions, etc. Non-tariff measures (NTMs) cover measures such as sanitary and phytosanitary standards and technical barriers to trade that aim to protect human, animal and plant life as well as the environment. They are necessary instruments to achieve social and environmental objectives. However, such measures can become barriers to trade hampering economic development opportunities. Evidence indicates that NTMs can be three to four times more restrictive than tariffs and are the main contributors to trade costs. NTMs have thus moved to the forefront of the discussion on sustainable global trade patterns and are key to enhance policy coherence for sustainable development.
To help developing countries better understand how NTMs are linked to the SDGs ESCAP, and ARTNeT, have conducted and facilitated research on NTMs through various past and on-going projects throughout Asia and the Pacific.
Overview of Non-Tariff Measures
Examining the impact of non-tariff measures (NTMs) on subregional trade among countries in North and Central Asia
Conventional trade theory suggest that countries physically located next to each other should trade the most with each other. Yet, trade statistics on trade flows of North and central Asia shows very different patterns. For example, in 2015, 92% of exports from Azerbaijan went to countries outside of the NCA region, with only 4% going to Georgia, 3.6% to the Russian federation, 0.5% to Uzbekistan, 0.1% to Turkmenistan and Kazakhstan, 0.02% to Tajikistan and 0.01% to Kyrgyzstan. In terms of imports, while the Russian Federation was the largest single source of imports (15.6%), 82% of imports came from non-NCA countries. This mismatch between expected trade based on geographic location and actual trade values is evident among other countries in the subregion as well. While some of reasons are due to similar production structure, similar export product baskets, and conventional barriers to trade like tariffs, an emerging concern is the increasing incidence of non-tariff measures. This project will examine the impact of NTMs on subregional trade among NCA countries. Ultimately, the goal of this project is to reduce costs of non-tariff measures among the member States in support of the 2030 Agenda for Sustainable Development through enhanced efficiency, transparency of NTM regulatory practices and mutual recognition of associated standards among the member States through enhanced knowledge and capacity of policymakers.
Project Details
- Project title: Examining the impact of non-tariff measures (NTMs) on subregional trade among countries in North and Central Asia
- Start date: January 2018
- End date: December 2019
- Beneficiary Countries: Selected North and Central Asian (NCA) countries (Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, the Russian Federation, Tajikistan, Turkmenistan, and Uzbekistan).
- Executing Entity: Economic and Social Commission for Asia and the Pacific (ESCAP)
- Co-Operating Agencies within the UN System: United Nations Conference for Trade and Development (UNCTAD)