Middle East and North African Integration: through the lens of Non-Tariff Measures

Abstract

Non-Tariff Measures (NTMs) have recently become a central issue for economists and policy makers. Based on a new database developed by the World Bank on five Middle East and North African(MENA) countries at a very detailed product level, this article provides calculations of the average tariff equivalents (AVEs) of NTMs in these countries. A second contribution is the development of an original empirical model with detailed trade costs. This makes it possible to provide the assessment of these NTMs impacts as well as other trade costs ones on the trade of goods in these countries. This analysis is also extended to the trade of 15 service sectors, through the use of the updated GTAP database. Results show that NTMs are very significant in the selected MENA countries. The model also shows that NTMs are significantly trade reducing in almost all MENA countries, especially Sanitary and Phytosanitary(SPS) measures. NTMs in services are also significantly trade reducing, especially in Maghreb countries. The study shows that not all NTMs must necessarily been reduced or removed, but the Middle East and North African Integration: through the lens of Non-Tariff Measures jei