The Impact of Sanitary and Phytosanitary Measures and Technical Barriers to Trade on Imports of China with Partner Countries

Abstract

The aim of this research is to analyze the impact of initiation of SPS and TBT by China for its import, during 1995 to 2018. Sanitary and Phytosanitary Agreement and Technical Barrier to Trade by the World Trade Organization have restricted the Chinese trade. In general, it is perceived that non-tariff measure barricade trade. Using the PPML estimation process to manage the zero import flow, and over-dispersion in data of China depend on the gravity model. Results witness that GDP of China and partners, tariff, exchange rate, and distance are core determinants; SPS and TBT initiated and levied by China have affected imports from the WTO members. Results states that China has initiated SPS and TBT, hence country has experienced lower imports. The study also depicts comparative analysis of Chines initiated SPS and TBT effects on import from the high income, upper middle, lower middle, and low income countries. SPS and TBT are equally good as tariff, but China should focus more on NTMs because tariff would decline gradually in WTO regime.