Heterogeneous Impact of Non-Tariff Measures and Trade Agreements on Indian Coffee Exports

This study evaluated the impact of Non-Tariff Measures (NTMs) on India's coffee exports. A preliminary descriptive analysis suggested that India was not exporting coffee at its full potential. The econometric analysis revealed that NTMs played a significant role in restricting trade when controlling for FTAs. While the demand for coffee in foreign markets was highly price-sensitive, it was largely resilient to SPS measures, suggesting quality effects. However, TBT measures significantly reduce exports. Among the different types of FTAs considered, Partial Scope Agreements (PSAs) and, to a greater extent, Deep Trade Agreements, the EIAs exhibited a positive influence on exports. However, traditional FTAs had a negative impact, aligning with existing literature on FTA effects. The study underscored the critical need to overcome technical barriers to trade by prioritising the mutual recognition agreements clause in future trade negotiations.