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

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.

Automated summary

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. Economic and pandemic considerations played a significant role in implementing such NTMs. The study estimates a dynamic post-event trade response of 5.4% for import facilitating and -27.5% for export restricting NTMs, showing their effectiveness in achieving policy goals.