A newly released study by the International Centre for Trade and Sustainable Development (ICTSD) looks at the potential of establishing a “Composite Index of Market Access” (CIMA) to measure the changes in market access using a single, comprehensive, and operationally-friendly model.
The extent to which markets are open and transparent to trade is an important issue for farmers across the globe. Farmers must weigh the costs and benefits of subsidies, export tariffs, and other barriers such as technical barriers, health and safety measures, and private voluntary standards which must be met to sell to certain buyers.
What this model attempts to achieve is to “shift the focus from the number and complexity” of measures being considered “to a uniform and comparable index so that negotiations may conclude more transparent and equitable trade agreements in the future.”
While still a conceptual discussion, the paper suggests that a limited test of the indiex on a few commodities could demonstrate whether the CIMA could become an effective tool for policy discussions, such as:
- determining the current level of market access for negotiation purposes
- identifying shifts in market access over time
- targeting sub-issues which might remedy existing trade problems
- estimating the impact of private standards on market access
- empowering exporting farmers with useful information on which to base decisions