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A Global Concordance Matrix and Application to Asia and the Pacific TRADE, INVESTMENT AND INNOVATION DIVISION Exploring linkages between non-tariff measures and the Sustainable Development Goals: A global concordance matrix and application to Asia and the Pacific Alexey Kravchenko Maria Semenova Seul Lee Yann Duval Trade, Investment and Innovation Working Paper Series NO. 04 | Dec 19 ESCAP is the regional development arm of the United Nations and serves as the main economic and social development centre for the United Nations in Asia and the Pacific. Its mandate is to foster cooperation between its 53 members and 9 associate members. ESCAP provides the strategic link between global and country-level programmes and issues. It supports Governments of the region in consolidating regional positions and advocates regional approaches to meeting the region’s unique and socio-economic challenges in a globalizing world. The ESCAP office is located in Bangkok, Thailand. Please visit our website at www.unescap.org for further information. Disclaimer: TIID Working Papers should not be reported as representing the views of the United Nations. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the United Nations. Working Papers describe research in progress by the author(s) and are published to elicit comments for further debate. They are issued without formal editing. The designation employed and the presentation of the material in the Working Paper do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The United Nations bears no responsibility for the availability or functioning of URLs. opinions, figures and estimates set forth in this publication are the responsibility of the authors, and should not necessarily be considered as reflecting the views or carrying the endorsement of the United Nations. Any errors are the responsibility of the authors. Mention of firm names and commercial products does not imply the endorsement of the United Nations. Trade, Investment and Innovation Working Paper Series NO. 04 | Dec 19 Exploring linkages between non-tariff measures and the Sustainable Development Goals: A global concordance matrix and application to Asia and the Pacific Alexey Kravchenko, Maria Semenova, Seul Lee and Yann Duval1 Please cite this paper as: Kravchenko, Alexey; Semenova, Maria; Lee, Seul and Duval, Yann (2019). Exploring linkages between non-tariff measures and the Sustainable Development Goals: A global concordance matrix and application to Asia and the Pacific. Trade, Investment and Innovation Working Paper No. 04/19, ESCAP: Bangkok. Available at http://www.unescap.org/resource-series/tiid-working-papers 1 Alexey Kravchenko is an Economic Affairs Officer, Trade Policy and Facilitation Section (TPFS), Trade, Investment and Innovation Division (TIID), United Nations Economic and Social Commission for Asia and the Pacific (ESCAP). Maria Semenova is a researcher and a consultant, TPFS, TIID, ESCAP. Seul Lee is an Associate Economic Affairs Officer, Division on International Trade and Commodities, United Nations Conference on Trade and Development (UNCTAD); Yann Duval is Chief, TPFS, TIID, ESCAP. Comments and suggestions may be sent to: [email protected]. Authors are grateful for the comments received from Mia Mikic, Director, TIID, ESCAP; Ralf Peters, Chief, Trade Information Section, UNCTAD; Samuel Rosenow, UNCTAD. Abstract Non-tariff measures (NTMs) are policy measures other than ordinary customs tariffs that can potentially have an economic effect on international trade in goods, changing quantities traded, or prices or both. NTMs as policy tools are not inherently good or bad. They often serve important purposes, such as protection of human, animal and plant health or, protection of the environment, and can therefore help achieve the 2030 Agenda for Sustainable Development. This working paper presents a methodology to link NTMs imposed on certain product groups to relevant SDGs and their targets, based on the stated or implied objectives of NTMs as reflected in the UNCTAD’s Trade Analysis and Information System (TRAINS) database. A matrix of information strings linking SDG Targets, HS codes, NTM codes, as well as selected keywords is constructed. The matrix is then used to analyse the extent to which NTMs in the TRAINS database are related to SDGs in selected countries, with a specific focus on Asia and the Pacific. Overall, the global SDG-HS-NTM concordance matrix contains 119 concordance strings (entries), of which 42 are evaluated to have direct intended impact on the following SDGs: SDG 2 on ending hunger, SDG 3 on health, SDG 6 on water, SDG 7 on energy, SDG 11 on cities and human settlements, SDG 12 on sustainable consumption and production, SDG 14 on life below water, SDG 15 on life on land, and SDG 16 on peace and crime. These 42 entries are used in the quantitative analysis of the data from the TRAINS database. The rest of the entries recorded in the matrix cover the full set of SDGs and are considered to have either ambiguous or indirect impacts on the examined SDGs. The complete matrix demonstrates the variety of avenues for potential impact of NTMs and provide ideas for possible directions of further inquiry. The concordance matrix is used to calculate the share of NTMs that have direct links to SDGs, a potentially useful index to gauge the overall consistency between NTMs and implementation of the Sustainable Development Agenda. On average, 41.5 per cent of the measures in the global TRAINS NTM database are directly addressing the SDGs - 42.5 in per cent Asia and the Pacific. The share ranges from 11 per cent (in India) to 73 per cent (in Tajikistan). The SDG-related NTMs, both in Asia-Pacific and globally, most often directly address SDGs 2 and 3, as well as 12 and 16. Such prominence of SDG 2 and 3 linkages is due to the fact that sanitary and phytosanitary (SPS) measures account for the highest share of all NTMs and have a direct role to play in the achievement of these two Goals. The complete concordance matrix and the global results of linking NTMs to SDGs and targets are available separately online. Keywords: Non-tariff measures, NTMs, Sustainable Development Goals, SDGs, trade and sustainable development, non-tariff measures and sustainable development, SDG-HS-NTM Concordance Matrix, Asia Pacific JEL: F14, F23 ii Contents Introduction .......................................................................................................................... 1 1. Data and Methodology................................................................................................... 2 1.1. The 17 Sustainable Development Goals ........................................................ 2 1.2. Non-tariff measures: classification and data sources ..................................... 3 1.3. Methodology overview: Matching NTMs to SDGs .......................................... 7 2 NTM-SDG Concordance: An illustration with SDG 3 ..................................................11 2.1 Access to medicines and medical technologies ............................................12 2.2 Safety and predictable efficacy of medicines and healthcare products ..........16 2.3 Regulating trade in products for human consumption that are undeniably harmful to human health ....................................................................................................18 2.4 Regulating characteristics of products intended for human consumption ......19 2.5 Reducing injuries and deaths on roads .........................................................23 2.6 Maintaining a safe living environment and reducing exposure to harmful substances 24 3. NTMs in Asia Pacific and their linkages to the SDGs .......................................................25 3.1 Goal 2 – Zero hunger ....................................................................................29 3.2 Goal 3 - Good Health and Well-being ...........................................................29 3.3 Goal 12 - Responsible Consumption and Production ....................................30 3.4 Goal 16 - Peace, Justice and Strong Institutions ...........................................30 3.5 Other Goals ..................................................................................................31 3.6 NTMs that have no direct links to SDGs........................................................32 3.7 Indirect effects ..............................................................................................33 4. Conclusion and way forward .......................................................................................35 References .........................................................................................................................36 Appendix 1. SDG-HS-NTM-Keywords Concordance Matrix .................................................47 Appendix 2. NTM-SDG linkages and concordance with SDG1-17 .......................................50 Figures Figure 1. The 17 Sustainable Development Goals ..................................................................... 2 Figure 2. NTMs in Asia-Pacific and globally, by type .................................................................. 6 Figure 3. NTMs in Asia-Pacific, by economy .............................................................................. 7 Figure 4. Share of NTMs that directly
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