Template-type: ReDIF-Paper 1.0
Author-Name: Wignaraja, Ganeshan
Author-Name: Nixson, Frederick
Title: Non-Tariff Measures, Technological Capability Building and Exports in India's
	 Pharmaceutical Firms
Abstract: As tariffs fall over time, attention inevitably focuses on non-tariff measures
	 (NTMs). Governments are increasingly imposing mandatory technical regulations on
	 products for reasons of security, health or the environment and have facilitated
	 the introduction of non-mandatory (voluntary) standards for products in order to
	 facilitate their utilisation. The WTO administers the implementation of the
	 Agreement on Technical Barriers to Trade (TBT) and the Agreement on the Application
	 of Sanitary and Phytosanitary Measures (SPS), which together constitute the core of
	 modern NTMs. This paper presents a case study of the effects of NTMs on Indian
	 pharmaceutical exports (bulk drugs and formulations). Within the broad context of
	 India's recent export performance, market access, competitiveness and technological
	 capability building, the study utilises enterprise-level data to identify the type
	 and nature of NTMs faced in export markets, the compliance with NTMs (including
	 preliminary estimates of the costs of compliance), technology strategies of
	 enterprises in response to NTMs and institutional support. The study highlights
	 differing perceptions as to the significance of NTMs, the importance of firm-level
	 research, lessons for other low- income economies and the need for enterprises to
	 adopt offensive technological strategies. The study concludes by identifying a
	 number of domestic constraints and market failures that are at least as important
	 as NTMs in explaining India's relatively poor export performance
Keywords: Non-tariff Measures, WTO Agreements, Technological Capability, Exports,
	 Pharmaceuticals, India
Series: Discussion Paper
Creation-Date: 2004
Number: 06
File-URL: http://www.intech.unu.edu/publications/discussion-papers/2004-6.pdf
File-Format: application/pdf
File-Size: 131 Kb
Handle: RePEc:unm:unuint:200406