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The impact of COVID-19 trade measures on agricultural and food trade.

ABSTRACT: This paper assesses the determinants of temporary non-tariff measures (NTMs) in response to COVID-19 and their implications for the agricultural and food trade. Using a control function approach, we show that economic and pandemic considerations played an essential role in implementing such NTMs. Relying on variation between treated and untreated varieties, we estimate a dynamic post-event trade response of 5.4% for import facilitating and -27.5% for export restricting NTMs. After revoking them, their trade effects fade away, implying that these temporary trade policies were effective in achieving the set policy goals, causing only a limited degree of long-term trade disruptions.

SUBMITTER: Ahn S

PROVIDER: S-EPMC9348489 | biostudies-literature | 2022 May

REPOSITORIES: biostudies-literature

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The impact of COVID-19 trade measures on agricultural and food trade.

Ahn Soojung S Steinbach Sandro S

Applied economic perspectives and policy 20220513

This paper assesses the determinants of temporary non-tariff measures (NTMs) in response to COVID-19 and their implications for the agricultural and food trade. Using a control function approach, we show that economic and pandemic considerations played an essential role in implementing such NTMs. Relying on variation between treated and untreated varieties, we estimate a dynamic post-event trade response of 5.4% for import facilitating and -27.5% for export restricting NTMs. After revoking them, ...[more]

PMID: 35941860

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Project description:ContextIn a region already plagued by food insecurity and challenges to the sustainability of the agricultural sector, the COVID-19 pandemic was a brutal shock in the Caribbean with immediate and significant socio-economic consequences.ObjectiveIn this paper, we assessed what are the immediate impacts of the COVID-19 crisis on the agricultural and food systems of the Caribbean.MethodsTo this end, we conducted online surveys among farmers, households and experts of the region. We assessed the nature, strength and reversibility of the impacts but also the factors of resilience in the face of the crisis.Results and conclusionsOur study shows that the COVID-19 crisis has had strong impacts on Caribbean farmers and has weakened agricultural systems. The main impacts identified were a drop in income, production losses due to difficulties in marketing through conventional channels, but also difficulties in managing the farming systems due to reduced access to inputs and labor. In order to cope, farmers have adapted to be more self-sufficient: reduction in the size of cultivated areas, search for short marketing channels, diversification of production and reorientation towards the needs of the local market, recourse to mutual aid between farmers. If these effects appear to be non-irreversible in an island like Guadeloupe, the situation is different in other islands of the region where farmers have had to sell livestock, seek new off-farm income and sometimes sell land to cope. In terms of impacts on food systems, the crisis has led to strong constraints such as a reduction in food intake and diversity and increased reliance on family and social mutual aid. Our study also shows that the crisis has had an impact on consumer behavior and their perception of the importance of the agricultural sector: reduction of food waste, return to fresh and local products, adaptation of the diet, consumption of new products, and cultivation of food gardens. Finally, our study shows that the crisis has had an effect of strengthening the links between farmers and the rest of the population.SignificanceThus if the crisis has had seriously damaging consequences, it can also be the trigger and catalyst for an agro-ecological transition and the development of a circular and territorialized bio-economy to strengthen the resilience of Caribbean agricultural and food systems and facilitate the achievement of sustainability and food security objectives.

Dataset Information

The impact of COVID-19 trade measures on agricultural and food trade.

Publications

The impact of COVID-19 trade measures on agricultural and food trade.

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