Abstract:
Spices are among the major agricultural and food products exports which have burdensome Non-Tariff
Measures (NTMs). Non-compliance with those had shifted Sri Lanka spices exports including Cinnamon to
more regional markets where quality regulation was less stringent. The overall obiective of this research
st.,dywis ro analyze effect of NTMs on Cinnamon IHS 090610, HS 090611, HS 090619and HS 090620)
exports of Sri Lanka over the period of 2001 to 2015.Trade data and non-tariff data from 2001 to 2015
were obtained from ITC: Trade map and information on NTMs was extracted from United Nations
Conference on Trade and Deveiopment IUNCTAD] data base on NTMs. The research employed gravity
estimate technique. As per the results of the gravity model estimations GPD of the exporting country, GPD
of the importing country, distance among trading partners and NTMs have statistically significant negative
effects on value of trade of Cinnamon. Further, 1 %o increase in importer country enforcement of NTMs on
Cinnamon decreases Sri Lanka Cinnamon value of trade by 0.005%. Sri Lankan Cinnamon occupies
highest market share in Peru (96.8%J, Ecuador (96.7J and Mexico [94%]with reiatively less number of
NTMs employed and less trade share in the world. Since, it is particularly important for developing county
like Sri Lanka, to compliance with NTM simposed by irnporting county, as countries market access
depends to a great extent on compliance with trade regulatory measures such as NTMs.
