Methods of Measurement of Non-tariff Barriers in the International Textile Trade

Abstract

Modern international trade is in the process of constanttrade liberalization in goods and services: nowwhen tariff barriers have been substantially reduced oreliminated there has been an increasing interest in theways that non-tariff barriers might restrict or distort internationaltrade and its dynamic. The policy of tradeliberalization is changing the picture of world import andexport trade.The end of quotas and import taxes are bringing to afinale a process of liberalization that started in 1995 withthe aim of integrating the textile and clothing sector intoGATT. The main emphasis of it was to gradually reducequotas as the most influential non-tariff trade barrierwithin 10 years period of time ending in January 1, 2005.Furthermore, the traditional non-tariff barriers to tradefound replacement by modern trade distortions.The article studies different methods to measure nontariffbarriers and analyses those most suitable to indicatethe influence of non-tariff barriers in the internationaltextile trade.At first the article presents one of the most frequentlyused classification (typology) of non-tariff barriers employedto control international trade and introduces generalmethods for measuring the presence or size of nontariffbarriers. The main part of the study is dedicated tothose trade restrictions most efficient in the context ofinternational textile trade: quantity impact measures,frequency measures and price comparison measures.The analysis of the main methods of measurement ofnon-tariff barriers as well as the summary of the findingsfrom the other researches brings to the conclusion thatregardless of a number of difficulties the theoretic andempiric analysis has developed and opens the opportunityto choose a corresponding trade policy to protect separateindustries. It also admits that estimating tariff and subsidiesequivalents and comparing them with price changesbefore and after the introduction of a barrier might be thebest method of measurement of non-tariff barrier.The empiric test is carried out in order to prove thisproposition. The object of the research – the comparableanalysis of consumer prices indexes including clothingand shoes in Norway, Sweden, representing EuropeanUnion and USA. The outcome of the research confirmsthat gradual reduction of tariff rates in the internationaltextile trade 1995-2004 is proportional to the drop inprices on textile and clothing products.Acknowledging difficulties the article concludes thatthere is no the only best method absolutely efficient formeasuring the presence or size of non-tariff barriers intextile and clothing sector. Every method discussed in thestudy depending on the aim of measurement of non-tariffbarriers might be used.