•  
  •  
 

Abstract

Previous studies highlight the heterogeneous effects of Non-Tariff Measures (NTMs) on international trade. This study identifies the enforcement of NTMs and examines the effects on the export performance of Indonesian tea products. This study employed an inventory (coverage ratio) approach and panel regression with the Poisson-Pseudo Maximum Likelihood (PPML) method. The results indicate that 31 out of 36 analyzed destination countries enforce NTMs, with Vietnam imposing the most prevalent ones. Furthermore, SPS measures substantially promote the export of Indonesian tea products, whereas TBT measures show no significant effect. Therefore, the government needs to provide incentives and harmonize the national Voluntary Sustainability Standards (VSS) scheme and other national standards to comply with NTMs imposed by destination countries.

References

[1] Abafita J, & Tadesse T 2021, ‘Determinants of global coffee trade: Do RTAs matter? Gravity model analysis’, Cogent Economics & Finance, vol. 9, no. 1, p. 1892925. doi: http://doi.org/10.1080/23322039.2021.1892925.

[2] Assoua, JE, Molua, EL, Nkendah, R, Choumbou, RFD, & Tabetando, R 2022, ‘The effect of sanitary and phytosanitary measures on Cameroon’s cocoa exports: An application of the gravity model’, Heliyon, vol. 8, no. 1, p. e08754. doi: http://doi.org/10.1016/j.heliyon.2022.e08754.

[3] Astuti, EP, Nurmalina, R, & Rifin, A 2023, ‘Pengaruh hambatan tarif dan SPS pada perdagangan pertanian Indonesia dengan negara G-20’, Buletin Ilmiah Litbang Perdagangan, vol. 17, no. 1, pp. 43-68. doi: http://doi.org/10.55981/bilp.2023.12.

[4] Bala, DM, Venkata, NSP, & Yannam, P 2020, ‘Global and regional trading blocs of coffee and tea: Outlook, trading signals, and policies’, World Food Policy, vol. 6, no. 2, pp. 119-156. doi: http://doi.org/10.1002/wfp2.12018.

[5] Bemelmans, J, Curzi, D, Olper, A, & Maertens, M 2023, ‘Trade effects of voluntary sustainability standards in tropical commodity sectors’, Food Policy, vol. 118, p. 102440. doi: http://doi.org/10.1016/j.foodpol.2023.102440.

[6] Bermúdez, S & Sarmiento, F 2023, ‘South-South trade and voluntary sustainability standards: Challenges and opportunities’, Report, International Institute for Sustainable Development. viewed 5 August 2024, https://www.iisd.org/publications/report/ voluntary-sustainability-standards-south-south-trade.

[7] Bermúdez, S, Voora, V, Larrea, C, & Luna, E 2024, Global market report: Tea prices and sustainability, International Institute for Sustainable Development, viewed 8 February 2024, https://www.iisd.org/ssi/publications/global-market-report-tea-prices-and-sustainability/?gad_source=1&gad_campaignid=22208053183& gbraid=0AAAAADQ3eTDwS8JTgzJhU8uG_QlRIB4Y5&gclid=CjwKCAjwp_LDBhBCEiwAK7Fnkut9X27mk7aAH1b_pUtZhNkAFKzPAEHGhyQT88poSNUIYCG32L9lHxoC_msQAvD_BwE.

[8] Bureau, JC, Guimbard, H, & Jean, S 2019, ‘Agricultural trade liberalisation in the 21st century: Has it done the business?’, Journal of Agricultural Economics, vol. 70, no. 1, pp. 3-25. doi: http://doi.org/10.1111/1477-9552.12281.

[9] Burger, M, van Oort, F, & Linders, GJ 2009, ‘On the specification of the gravity model of trade: Zeros, excess zeros and zero-inflated estimation’, Spatial Economic Analysis, vol. 4, no. 2, pp. 167-190. doi: https://doi.org/10.1080/17421770902834327.

[10] Bustaman, A, Indiastuti, R, Budiono, B, & Anas, T 2022, ‘Quality of Indonesia’s domestic institutions and export performance in the era of global value chains’, Journal of Economic Structures, vol. 11, p. 35. doi: https://doi.org/10.1186/s40008-022-00293-5.

[11] Daq, MF 2021, Dampak non-tariff measures (NTMs) terhadap ekspor teh hijau Indonesia ke negara tujuan ekspor (Bachelor thesis, IPB University).

[12] Darhyati, AT, Suharno, & Rifin, A 2017, ‘Impact of non tariff measure on Indonesian cacao exports’, International Journal of Agriculture System, vol. 5, no. 2, pp. 175-184. doi: https://doi.org/10.20956/ijas.v5i2.1191.

[13] Directorate General of Estates Crops 2020, Statistik perkebunan unggulan nasional 2019-2021 = Statistical of national leading estate crops commodity 2019-2021, Sekretariat Direktorat Jenderal Perkebunan. viewed 8 February 2024, https: //ditjenbun.pertanian.go.id/template/uploads/2021/04/ BUKU-STATISTIK-PERKEBUNAN-2019-2021-OK.pdf.

[14] Directorate General of Estates Crops 2022, Statistik perkebunan unggulan nasional 2021-2023 = Statistical of National Leading Estate Crops Commodity 2021-2023, Sekretariat Direktorat Jenderal Perkebunan. viewed 8 February 2024,

[15] Dong, Y, & Zhu Y 2015, ‘Impact of SPS measures imposed by developed countries on China’s tea export-A perspective of differences in standards’, Applied Economics and Finance, vol. 2, no. 4, pp. 160-169. doi: https://doi.org/10.11114/aef.v2i4.1175.

[16] Edeme, RK, Aduku, EB, Nwokoye, ES, & Nkalu, NC 2020, ‘Impact of trade restrictions in European and Sub-Saharan regions’, Review of Market Integration, vol. 12, no. 1-2, pp. 35-50. doi: https://doi.org/10.1177/0974929220969221.

[17] Eichengreen, B, & Irwin, DA 1998. ‘The role of history in bilateral trade flows’, in JA Frankel (ed.), The regionalization of the world economy (pp. 33-62), University of Chicago Press.

[18] Fugazza, M 2013, ‘The economics behind non-tariff measures: Theoretical insights and empirical evidence’, Policy Issues in International Trade and Commodities Study Series, 57, United Nations Conference on Trade and Development. viewed 8 February 2024, https://digitallibrary.un.org/record/759863?ln=es&v=pdf.

[19] Ghodsi, MM 2018, ‘Determinants of specific trade concerns raised on technical barriers to trade EU versus non-EU’, Empirica, vol. 45, pp. 83-128. doi: https://doi.org/10.1007/s10663-016-9347-1.

[20] Grunert, KG, Hieke, S, & Wills, J 2014, ‘Sustainability labels on food products: Consumer motivation, understanding and use’, Food Policy, vol. 44, pp. 177-189. doi: https://doi.org/10.1016/j.foodpol.2013.12.001.

[21] Gujarati, DN, & Porter, DC 2009, Basics econometrics (5th edition), McGraw-Hill/Irwin.

[22] Gunawiredja, DA 2022, ‘Pengaruh non-tariff measures terhadap ekspor Indonesia ke beberapa negara Uni Eropa’, Buletin Ilmiah Litbang Perdagangan, vol. 16, no. 2, pp. 103-118. doi: https://doi.org/10.55981/bilp.2022.1.

[23] Hwang, CW, & Lim, SS 2017, ‘Effect of non-tariff measures on international tea trades’, Journal of Korea Trade, vol. 21, no. 4, pp. 309-323. doi: https://doi.org/10.1108/JKT-05-2017-0054.

[24] Hyun, HJ, & Jang, YJ 2019, ‘New trade restrictive measures and exports: Evidence from South Korea’, Seoul Journal of Economics, vol. 32, no. 2, pp. 137-162.

[25] ITC Standards Map 2023, The state of sustainable market - 2023. viewed 9 February 2024, https://standardsmap.org/en/trends.

[26] Jagdambe, S, & Kannan, E 2020, ‘Effects of ASEAN-India Free Trade Agreement on agricultural trade: The gravity model approach’, World Development Perspectives, vol. 19, p. 100212. doi: https://doi.org/10.1016/j.wdp.2020.100212.

[27] Jha, A, & Bathla, S 2021, ‘Non-tariff measures and India’s agricultural exports: The case of India-ASEAN trade agreement’, In: R Sudesh Ratna, SK Sharma, R Kumar, & A Dobhal (eds.), India studies in business and economics (pp. 117-138), Springer. doi: https://doi.org/10.1007/978-981-33-6854-5_6.

[28] Jordaan, AC 2017, ‘Impact of non-tariff measures on trade in Mauritius’, Foreign Trade Review, vol. 52, no. 3, pp. 185-199. doi: https://doi.org/10.1177/0015732516681873.

[29] Kartasasmita, RE, Kurniawan, F, Amelia, T, Dewi, CM, Harmoko, H, & Pratama Y 2020, ‘Determination of anthraquinone in some Indonesian black tea and its predicted risk characterization’, ACS Omega, vol. 5, no. 32, pp. 20162-20169. doi: https://doi.org/10.1021/acsomega.0c01812.

[30] Indonesian Food and Drug Authority 2022, Keputusan Kepala Badan Pengawas Obat dan Makanan nomor 229 tahun 2022 tentang pedoman mitigasi risiko kesehatan senyawa etilen oksida (ethylene oxide), 2,6-diisopropilnaftalena (2,6-diisopropylnaphthalene), dan 9,10-antrakinon (9,10-anthraquinone), Badan Pengawas Obat dan Makanan. viewed 22 October 2023, https://standarpangan.pom.go.id/dokumen/peraturan/ 202x/Keputusan_Kepala_Badan_Pengawas_Obat_ dan_Makanan_tentang_Pedoman_Mitigasi_Risiko_ Kesehatan_Senyawa_Etilen_Oksida__Ethylene_Oxide_.pdf.

[31] Kinzius, L, Sandkamp, A & Yalcin, E 2019, ‘Trade protection and the role of non-tariff barriers’, Review of World Economics, vol. 155, pp. 603-643. doi: https://doi.org/10.1007/s10290-019-00341-6.

[32] Kumar, C & Bharti, N 2020, ‘Why NTM is a challenge in trade relations? Evidence from India–Africa agricultural trade’, Insight on Africa, vol. 12, no. 2, pp. 79-103. doi: https://doi.org/10.1177/0975087819898582.

[33] Kumar, C & Bharti, N 2021, ‘Post-SAFTA NTMs for agricultural trade: Revelations from the India–South Asia approach’, Foreign Trade Review, vol. 56, no. 1, pp. 117-135. doi: https://doi.org/10.1177/0015732520961309. [34] Lateef, M, Tong, GJ & Riaz, MU 2018, ‘Exploring the gravity of agricultural trade in China–Pakistan Free Trade Agreement’, The Chinese Economy, vol. 51, no. 6, pp. 522-533. doi: https://doi.org/10.1080/10971475.2018.1481008. [35] Li, CWY, Walters, S, Müller, JF, Orlando, J, & Brasseur, GP 2023, ‘Contamination of tea leaves by anthraquinone: The atmosphere as a possible source’, Ambio, vol. 52, pp. 1373-1388. doi: https://doi.org/10.1007/s13280-023-01858-9.

[36] Lohani, KK 2020, ‘Trade flow of India with BRICS countries: A gravity model approach’, Global Business Review, vol. 25, no. 1, pp. 22-39. doi: https://doi.org/10.1177/0972150920927684.

[37] Marchini, A, Riganelli, C, Diotallevi, F, & Polenzani, B 2021 ‘Label information and consumer behaviour: Evidence on drinking milk sector’, Agricultural and Food Economics, vol. 9, p. 8. doi: https://doi.org/10.1186/s40100-021-00177-5.

[38] Mashayekhi, M 2020, ‘Services trade, structural transformation and the SDG 2030 agenda’, in A Klasen (ed.), The handbook of global trade policy (pp. 79-117), John Wiley & Sons. doi: https://doi.org/10.1002/9781119167402.ch4.

[39] Ministry of State Secretariat 2021, Peraturan Pemerintah Republik Indonesia nomor 26 tahun 2021 tentang penyelenggaraan bidang pertanian, Kementerian Sekretariat Negara Republik Indonesia. viewed 22 October 2023, https://peraturan.bpk.go.id/Details/161856/pp-no-26-tahun-2021.

[40] Naabi, AA & Bose, S 2020, ‘Do regulatory measures necessarily affect Oman’s seafood export-supply?’, SAGE Open, vol. 10, no. 3. doi: https://doi.org/10.1177/2158244020950658.

[41] Nasution, RHR 2023, ‘Pengaruh kebijakan Non-Tariff Measures (NTMs) terhadap ekspor pulp dan kertas Indonesia’, Buletin Ilmiah Litbang Perdagangan, vol. 17, no. 1, pp. 19-42.

[42] Nguyen, BN 2024, ‘The extensive and intensive effects of Vietnam’s technical measures on agricultural imports’, Cogent Economics & Finance, vol. 12, no. 1, p. 2308672.

[43] Nursodik, H, Santoso, SI, & Nurfadillah, S 2022, ‘Competitiveness of Indonesian tea export in Southeast Asia markets’, SOCA: Jurnal Sosial Ekonomi Pertanian, vol. 16, no. 1, pp. 1–14. doi: https://doi.org/10.24843/SOCA.2022.v16.i01.p01.

[44] Prasada, IY, & Dhamira, A 2022, ‘Non-tariff measures and competitiveness of Indonesia’s natural rubber export in destination countries’, AGRARIS: Journal of Agribusiness and Rural Development Research, vol. 8, no. 2, pp. 181- 197. doi: https://doi.org/10.18196/agraris.v8i2.11392.

[45] Priya, KM, & Alur, S 2023, ‘Analyzing consumer behaviour towards food and nutrition labeling: A comprehensive review’, Heliyon, vol. 9, e19401. doi: https://doi.org/10.1016/j.heliyon.2023.e19401.

[46] Ramaswamy, S, Choutagunta, A & Sahu, SK 2021, ‘Evaluating Asian Free Trade Agreements: What does gravity model tell us?’, Foreign Trade Review, vol. 56, no. 1, pp. 60-70. doi: https://doi.org/10.1177/0015732520961330.

[47] Rindayati, W & Kristriana, OW 2018, ‘Impact analysis of non-tariff measures (NTM) on Indonesian tuna exports to major destination countries’, Jurnal Manajemen & Agribisnis, vol. 15, no. 2, pp. 172-185. doi: https://doi.org/10.17358/jma.15.2.172.

[48] Salvatore, D 2014, Ekonomi internasional (9th edition), Penerbit Salemba Empat.

[49] Santeramo, FG, & Lamonaca, E 2019, ‘The effects of non-tariff measures on agri-food trade: A review and meta-analysis of empirical evidence, Journal of Agricultural Economics, vol. 70, no. 3, pp. 595-617. doi: https://doi.org/10.1111/1477-9552.12316.

[50] Santeramo, FG, Guerrieri, V, & Lamonaca E 2019, ‘On the evolution of trade and sanitary and phytosanitary standards: The role of trade agreements’, Agriculture, vol. 9, no. 1, p. 2, doi: https://doi.org/10.3390/agriculture9010002.

[51] Santeramo, FG, & Lamonaca, E 2022, ‘On the trade effects of bilateral SPS measures in developed and developing countries’, The World Economy, vol. 45, no. 10, pp. 3109-3145. doi: https://doi.org/10.1111/twec.13256.

[52] Santos Silva, JMC, & Tenreyro, S 2006, ‘The log of gravity’, The Review of Economics and Statistics, vol. 88, no. 4, pp. 641-658. doi: https://doi.org/10.1162/rest.88.4.641.

[53] Santos Silva, JMC, & Tenreyro, S 2011, ‘Further simulation evidence on the performance of the Poisson pseudo-maximum likelihood estimator’, Economics Letters, vol. 112, no. 2, pp. 220-222. doi: https://doi.org/10.1016/j.econlet.2011.05.008.

[54] Shahriar, S, Qian, L, & Kea, S 2019, ‘Determinants of exports in China’s meat industry: A gravity model analysis’, Emerging Markets Finance and Trade, vol. 55, no. 11, pp. 2544-2565. doi: https://doi.org/10.1080/1540496X.2019.1578647.

[55] Shariasih, E 2016, Khazanah arsip perkebunan teh Priangan, ANRI.

[56] Sumarwan, U, Simanjuntak, M, & Yuliati, LN 2017, ‘Metaanalysis study: Reading behavior of food products label’, Journal of Consumer Sciences, vol. 2, no. 2, pp. 26-40. doi: https://doi.org/10.29244/jcs.2.2.26-40.

[57] Syahtiar, DA 2019, Dampak hambatan non tarif terhadap ekspor teh hitam Indonesia ke negara tujuan utama (Skripsi, Fakultas Ekonomi dan Manajemen IPB University).

[58] Tayleur, C, Balmford, A, Buchanan, GM, Butchart, SHM, Walker, CC, Ducharme, H, Green, RE, Milder, JC, Sanderson, FJ, Thomas, DHL, Tracewski, L, Vickery, J, & Phalan, B 2018, ‘Where are commodity crops certified, and what does it mean for conservation and poverty alleviation?’, Biological Conservation, vol. 217, pp. 36-46. doi: https://doi.org/10.1016/j.biocon.2017.09.024.

[59] Tchakounte, AD & Fiankor, DDD, 2021, ‘Trade costs and demand-enhancing effects of agrifood standards: Consequences for Sub-Saharan Africa’, Journal of African Trade, vol. 8, no. 1, pp. 51-64. doi: https://doi.org/10.2991/jat.k.210907.001.

[60] Thuong, NTT 2018, ‘The effect of sanitary and phytosanitary measures on Vietnam’s rice exports’, EconomiA, vol. 19, no. 2, pp. 251-265. doi: https://doi.org/10.1016/j.econ.2017.12.001.

[61] Tinbergen, J 1962, Shaping the world economy: Suggestions for an international economic policy, Twentieth Century Fund.

[62] UN Comtrade 2023, UN Comtrade database, United Nations. viewed 22 October 2023, https://comtradeplus.un.org/.

[63] UNCTAD 2010, ’Non-tariff measures: Evidence from selected developing countries and future research agenda’, Developing countries in international trade studies, United Nations. viewed 21 November 2023, https://unctad.org/publication/non-tariff-measures-evidence-selected-developingcountries-and-future-research-agenda.

[64] UNCTAD 2019, International classification of non-tariff measures: 2019 version, United Nations. viewed 26 October 2023, https://unctad.org/publication/international-classification-non-tariff-measures-2019-version.

[65] UNCTAD 2021, ’Better trade for sustainable development: The role of voluntary sustainability standards’, Developing countries in international trade studies, United Nations. viewed 8 February 2024, https://unctad.org/publication/better-trade-sustainable-development-role-voluntarysustainability-standards.

[66] UNCTAD TRAINS 2023, Welcome to TRAINS portal, UNCTAD. viewed 22 October 2023, https://trainsonline.unctad.org/home.

[67] van Bergeijk, PAG, & Brakman, S (eds.) 2010, The gravity model in international trade: Advances and applications, Cambridge University Press.

[68] Voora, V, Bermúndez, S, & Larrea, C 2019, ‘Global market report: Tea’, Sustainable Commodities Marketplace Series 2019, International Institute for Sustainable Development. viewed 8 February 2024, https://www.iisd.org/system/files/publications/ssi-global-market-report-tea.pdf.

[69] Wei, G, Huang, J, & Yang, J 2012, ‘The impacts of food safety standards on China’s tea exports’, China Economic Review, vol. 23, no. 2, pp. 253-264. doi: https://doi.org/10.1016/j.chieco.2011.11.002.

[70] Widyastuti, IB, Yudono, P, & Putra, ETS 2021, ‘Pengaruh media pada karakter biokimia dan keberhasilan pencangkokan tanaman teh (Camellia sinensis L. (O.) Kuntze pada klon TRI 2025’, Jurnal Ilmu Pertanian Indonesia, vol. 26, no. 1, pp. 113-119. doi: https://doi.org/10.18343/jipi.26.1.113.

[71] Wood, J, Wu, J, Li, Y, & Jang, H 2017, ‘The economic impact of SPS measures on agricultural exports to China: An empirical analysis using the PPML method’, Social Sciences, vol. 6, no. 2, p. 51. doi: https://doi.org/10.3390/socsci6020051.

[72] Wood, J, Wu, J, Li, Y, & Kim, J 2019, ‘The impact of TBT and SPS measures on Japanese and Korean exports to China’, Sustainability, vol. 11, no. 21, p. 6141. doi: https://doi.org/10.3390/su11216141.

[73] Yuda, WA 2022, December 14, Potensi ekspor produk teh, UKMINDONESIA.ID. viewed 23 April 2024, https://ukmindonesia.id/baca-deskripsi-posts/potensi-ekspor-produk-teh.

[74] Zafar, MZ, Shi, X, Yang, H, Abbas, J, & Chen, J 2022, ‘The impact of interpretive packaged food labels on consumer purchase intention: The comparative analysis of efficacy and inefficiency of food labels’, International Journal of Environmental Research and Public Health, vol. 19, no. 22, p. 15098. doi: https://doi.org/10.3390/ijerph192215098.

Download

Share

COinS
 
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.