Studying the Effects of Non-Tariff Barriers on the Export of the Main Agricultural Products of Iran

Abstract

Problem statement: As trade agreements decrease tariffs throughout the world, other barriers to trade emerge. These Non-Tariff Barriers (NTBs) can be just as troublesome as tariffs for exporting countries. NTBs include any of a number of hindrances that restrict the ability of companies to export. NTBs may now have a greater impact on trade than tariffs. Approach: In contrast with previous research, we used a gravity model to estimate the trade effect of non-tariff barriers imposed by importer countries on pistachios, raisins and shrimp exported by Iran. Results: NTBs had a negative impact on pistachio and shrimp exports and their effect was greater than that of tariffs; raisin exports were unaffected by NTBs. Conclusion/Recommendations: The export and the world demand for agricultural products increasing focusing on quality, packaging, labeling and standards of products. Policy makers in countries that export agricultural products, such as Iran, must consider these characteristics when designing their programs. Therefore, if Iran builds up-to-date production systems, it will increase its exports of agricultural products.