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Effect of non-tariff barriers on secondary processed wood product trade: New Zealand exports to the United States, China and Japan

Informally Refereed

Abstract

Secondary processed wood products - builder's carpentry and joinery, moldings and millwork, wooden furniture, and prefabricated buildings - have grown significantly in importance in the global trade of wood products. At the same time there has been increased use of non-tariff barriers to restrict their trade.  These barriers could have an important impact on the trade of secondary processed products, as well as the production, consumption and trade of wood products used in their manufacture. This paper describes the development of an economic model of the international trade of secondary processed wood products within the structure of the spatial equilibrium Global Forest Products Model. The model was used to assess the effect of removing non-tariff barriers to New Zealand exports of prefabricated housing, and builder's carpentry and joinery to three key trading partners; the United States, China and Japan. New zealand exporters would benefit the most from removal of non-tarigg barriers that account for the greatest proportion of production costs, i.e., higher design values and engineering certificates for prefabricated houses exported to Japan. The calculated increase in trade value from improved market assess is, however, a modest 0 to 9.2% of New Zealand's total wood products trade by 2030.

Keywords

Secondary processed wood products, non-tariff barriers, trade, spatial equilibrium model, econometrics

Citation

Turner, James A.; Buongiorno, Joseph ; Zhu, Shushuai; Maplesden, Frances. 2008. Effect of non-tariff barriers on secondary processed wood product trade: New Zealand exports to the United States, China and Japan. New Zealand Journal of Forestry Science 38(2/3):299-321.
https://www.fs.usda.gov/research/treesearch/36289