Heterogeneous Impact of Non-Tariff Measures and Trade Agreements on Indian Coffee Exports: 25282
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https://doi.org/10.35716/IJED-25282
Author: Imran Ahmad and Shahid Ahmed
Author Address: Department of Law, Aligarh Muslim University Centre, Malapuram-673940 (Kerala)
Abstract
This
study evaluated the impact of Non-Tariff Measures (NTMs) on India's coffee
exports. A preliminary descriptive analysis suggested that India was not
exporting coffee at its full potential. The econometric analysis revealed that NTMs
played a significant role in restricting trade when controlling for FTAs. While
the demand for coffee in foreign markets was highly price-sensitive, it was
largely resilient to SPS measures, suggesting quality effects. However, TBT
measures significantly reduce exports. Among the different types of FTAs
considered, Partial Scope Agreements (PSAs) and, to a greater extent, Deep
Trade Agreements, the EIAs exhibited a positive influence on exports. However,
traditional FTAs had a negative impact, aligning with existing literature on
FTA effects. The study underscored the critical need to overcome technical
barriers to trade by prioritising the mutual recognition agreements clause in
future trade negotiations.
Keywords
Free trade
agreements, export performance, Indian coffee exports, non-tariff measures.
JEL Codes
F13, F14, F15, Q17.