Evaluating the effects of nontariff measures on poultry trade
2024
Farris, Jarrad | Morgan, Stephen | Beckman, Jayson
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.
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