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Empirical Analysis on the Technical Barriers to Trade—Taking Tea Trade between Japan and China as an Example
Abstract
The tea industry is a traditional pillar industry for China’s economy. It has developed rapidly and has gained significant achievements with reform and opening-up to the international market. Known as “green trade barriers”, new non-tariff barriers to trade(NTBs), such as technical trade barriers and environmental trade barriers, have taken the place of traditional trade barriers. As a main type of technical barrier to trade, pesticide MRL standards have severe impact on foreign trade of our Chinas tea products.
Japan is the second largest export market of Chinas tea products. Since 2001, Japan heightened its pesticide MRL standards on tea products continually. This paper takes tea trade with Japan as an example, briefly introduces Japans technical barrier to trade (TBTs) and Chinas pesticide MRL standards system, makes quantitative analysis on the important roles which tea products play in the trade, adopts gravity model to make empirical analysis of the impact of technical barrier to trade.
1. Introduction
The Non-Tariff Barriers (NTBs) as defined by The General Agreement on Tariffs and Trade (GATT) allows an importing country to introduce measures which are necessary to protect human, animal or plant life or health. The WTO Agreement on Technical Barriers to Trade (TBTs) also allows for the imposition of technical requirements on products by an importing country. Technical barriers to trade (TBTs) are widely believed to assume an increasingly important role in determining international trade, especially between developed and developing economies. The use of NTMs other than quantity control, finance and price control measures increased from 55% in 1994 to 85% in 2004, and tea products are extensively affected (Anne-Célia, D. Frank van, T., 2010).
In 2008, the total volume of tea export for China was 3 million tons, which accounted fo
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