Non-tariff barriers to trade

Jul 30

Non-tariff barriers to trade are trade barriers that restrict imports but are not in the usual form of a tariff.

They are criticized as a means to evade free trade rules such as those of the World Trade Organization (WTO), the European Union (EU), or North American Free Trade Agreement (NAFTA) that restrict tariffs. Some of the common examples are anti-dumping measures and countervailing duties, which, although they are called “non-tariff” barriers, have the effect of tariffs but are only imposed under certain conditions. Their use has risen sharply after the WTO rules led to a very significant reduction in tariff use.

Non-tariff barriers may also be in the form of manufacturing or production requirements of goods, such as how an animal is caught or a plant is grown, with an import ban imposed on products that don’t meet the requirements. Examples are the European Union restrictions on genetically-modified organisms or beef treated with growth hormones.

Some non-tariff trade barriers are expressly permitted in very limited circumstances, when they are deemed necessary to protect health, safety, or sanitation, or to protect depletable natural resources.

Non-tariff barriers to trade can be:

Import bans
General or product-specific quotas
Rules of Origin
Quality conditions imposed by the importing country on the exporting countries
Sanitary and phyto-sanitary conditions
Packaging conditions
Labelling conditions
Product standards
Complex regulatory environment
Determination of eligibility of an exporting country by the importing country
Determination of eligibility of an exporting establishment(firm, company) by the importing country.
Additional trade documents like Certificate of Origin, Certificate of Authenticity etc.
Occupational safety and health regulation
Employment law
Import licenses
State subsidies, procurement, trading, state ownership
Export subsidies
Fixation of a minimum import price
Product classification
Quota shares
Foreign exchange controls and multiplicity
Inadequate infrastructure
“Buy national” policy
Over-valued currency
Intellectual property laws (patents, copyrights)
Restrictive licences
Seasonal import regimes
Corrupt and/or lengthy customs procedures
Bribery and corruption

Sing and smmile exports