Non-tariff Measures at the Border, a GTAP Level Analysis

Non-tariff measures can significantly increase trade costs and distort trade flows. This study uses the GTAP model to assess the impact of reducing compliance costs associated with border non-tariff measures on trade and other economic indicators. The purpose of this paper is to present some illustrative statistics on border non-tariff measures, introduce the new GTAP 11 Satellite Database, which provides ad-valorem equivalents for border measures, and demonstrate how it can be applied in the GTAP model to assess the general equilibrium effects of cost reductions. Although the GTAP simulations are not directly linked to specific policy actions, this research provides valuable insights into how reducing border non-tariff measure costs could enhance trade flows and promote regional integration strategies.