Non-tariff barriers to trade(NTB's) are trade barriers that restrict imports but are not in the usual form of a tariff.

In some forms, 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 the use of tariffs. Some common examples of NTB's are anti-dumping measures and countervailing duties, which, although they are called "non-tariff" barriers, have the effect of tariffs once they are enacted. Their use has risen sharply after the WTO rules led to a very significant reduction in tariff use.

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.

Product Standards & Technical Regulations

Non-tariff barriers may also be in the form of product standards and technical regulations, which may dictate particular manufacturing guidelines or product specifications. If products do not meet the given requirements, they will face an import ban. Examples of this sort are the European Union restrictions on genetically-modified organisms or beef treated with growth hormones.

The tendency of standards and technical regulations to disrupt trade flows has become an increasingly prominent part of the international trade policy debate. As many of the least-developed countries now have duty-free access to major developed-country markets, the trade effects of non-tariff barriers have assumed greater importance. Recent analysis carried out by the World Bank as part of its Trade Costs and Facilitation Project has focused on how product standards affect trade costs and export prospects for developing country firms exporting into developed markets.^[1]

Examples of Non-Tariff Barriers to Trade

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

See also

• Trade sanctions
• Trade Facilitation and Development

References

1. ^ "Harmonized International Standards Do Matter to Developing Country Exports" John S. Wilson & Benjamin Taylor; Trade Facilitation Reform Issue Brief, The World Bank. 2008.

External links

• Trade Costs and Facilitation: The Development Dimesion, the main World Bank project on trade facilitation, economic growth and development.

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