Salamat Ali (University of Nottingham)

"Scrambled Signals: Impact of SPS and TBT measures on the export of mangoes from Pakistan"

Abstract

Scrambled signals: Impact of non-tariff measures on mango exporting firms

This study empirically investigates the effect of sanitary and phytosanitary (SPS) measures and the technical barriers to trade (TBT) on mango exporting firms in Pakistan.  It uses a micro-level administrative dataset at an eight-digit-level of disaggregation, and exploits a variation of non-tariff measures (NTMs) across markets and over time in the identification strategy. Pakistani mangoes are allowed duty-free and quota-free access to the EU, North America and Middle East; however they are facing packaging, labelling, and conformity assessment requirements in several countries since 2008.

The paper finds that, contrary to the findings of many earlier studies, the application of SPS and TBT measures has improved intensive margins of the trade.  Compared to a control group, exports to the NTM imposing countries appear to have risen by 15%, from June 2002 to July 2014. Although unit prices dropped, and the customers-base also shrank, these firms ship higher quantities to a smaller set of buyers in these markets. These findings have development policy implications for commodity exporting countries.