Non-Tariff Barriers
Kartavya Desk Staff
Source: DH
Context: During his visit to Jaipur, US Vice President urged India to eliminate non-tariff barriers (NTBs) to enhance market access for American goods.
About Non-Tariff Barriers (NTBs):
• What are Non-Tariff Barriers (NTBs)? NTBs are trade restrictions other than customs duties that hinder the free flow of goods and services across borders. They include both technical (e.g., certification) and non-technical (e.g., quotas) regulatory measures.
• NTBs are trade restrictions other than customs duties that hinder the free flow of goods and services across borders.
• They include both technical (e.g., certification) and non-technical (e.g., quotas) regulatory measures.
• Impact on Imports and Exports:
• Increase compliance costs for exporters through mandatory testing, documentation, and redesign. Cause logistical delays at ports due to complex inspections and procedural formalities. Reduce the competitiveness of exporters, particularly from developing countries. Create uncertainty and risk, deterring small businesses from entering global markets.
• Increase compliance costs for exporters through mandatory testing, documentation, and redesign.
• Cause logistical delays at ports due to complex inspections and procedural formalities.
• Reduce the competitiveness of exporters, particularly from developing countries.
• Create uncertainty and risk, deterring small businesses from entering global markets.
• Major Categories of NTBs:
• Complex Registration Requirements: Exporters must register and submit extensive documentation with destination authorities. Stringent Product Standards: Domestic rules may exceed global norms, as seen in pharmaceuticals or food safety. Import Licensing: Many items require special or non-automatic licenses. State Trading Monopolies: Certain goods are imported only by government agencies under cabinet oversight. Technical Barriers to Trade (TBTs): Include domestic certification, labelling, quality control orders, and restricted ingredients in Agri-products.
• Complex Registration Requirements: Exporters must register and submit extensive documentation with destination authorities.
• Stringent Product Standards: Domestic rules may exceed global norms, as seen in pharmaceuticals or food safety.
• Import Licensing: Many items require special or non-automatic licenses.
• State Trading Monopolies: Certain goods are imported only by government agencies under cabinet oversight.
• Technical Barriers to Trade (TBTs): Include domestic certification, labelling, quality control orders, and restricted ingredients in Agri-products.
• Significance of NTBs:
• NTBs can be used strategically to protect domestic industries without violating WTO tariff rules. They often lack transparency, creating an uneven playing field for global trade. NTBs, if arbitrary or without scientific basis, violate the principle of fair trade under WTO norms.
• NTBs can be used strategically to protect domestic industries without violating WTO tariff rules.
• They often lack transparency, creating an uneven playing field for global trade.
• NTBs, if arbitrary or without scientific basis, violate the principle of fair trade under WTO norms.