Non-tariff barriers to trade
Most trade barriers work on the same principle: the of some sort of cost on trade that raises the price of the traded products. If two or more nations use trade barriers against each other, then a trade war results.
generally agree that trade barriers are and decrease overall economic , this can be explained by the theory of advantage. In theory, free trade involves the removal of all such barriers, except perhaps those necessary for health or national security. In practice, however, even those countries promoting free trade heavily subsidize certain , such as and steel. Examples of free trade areas are: North American Free Trade Agreement (NAFTA), South Asia Free Trade Agreement(SAFTA), European Free Trade , European Union (EU), Union of South American Nations.Other trade barriers include in culture, customs, , laws, language and currency.
Non-tariff barriers to trade are trade barriers that restrict imports but are not in the usual form of a tariff.
They are as a means to evade free trade rules such as those of the World Trade (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 duties, which, although they are called “non-tariff” barriers, have the effect of tariffs but are only imposed under certain . Their use has risen sharply after the WTO rules led to a very reduction in tariff use.
Non-tariff barriers may also be in the form of or 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 . Examples are the European Union on -modified organisms or beef treated with growth hormones.
Some non-tariff trade barriers are expressly permitted in very limited , when they are deemed necessary to protect health, safety, or , or to protect natural resources.
Non-tariff barriers to trade can be:
State subsidies, , trading, state ownership
safety and health
Foreign exchange controls and
“Buy national” policy.
property laws (patents, )
Seasonal import regimes
Examples of Trade Barriers
While trade barriers and unfair practices take many forms, the most common examples are listed below:
property – including copyright, patent and .
Customs that are not uniformly applied
Lack of bidding for foreign tenders.
The of direct or indirect subsidies by a foreign in favor of domestic suppliers.
and testing that are not required by domestic .
Influence pedaling – A corporate entity or country is with fair trade practices at your expense.
Bribery, and requests for payoffs – When foreign bribery prevents you from competing fairly on the basis of price, quality or service.
Report a Trade Barrier
If you feel your company’s exports or foreign bids have been, or may be adversely affected by a trade barrier or unfair business practice, you may file a complaint with the Trade Center within the Trade .
Property Rights Abroad
Learn what property and how to protect your rights and . Receive guidance on how to file patents, and/or in the U.S. and abroad.
Fair Access to Foreign Contracts
How can I insure a fair bidding process on a foreign contract? If your company is bidding on a foreign contract the Advocacy Center can help level the playing field.
Foreign Technical Barriers to Trade
Member countries of the World Trade (WTO) are required under the Agreement on Technical Barriers to Trade (TBT Agreement) to report to the WTO all proposed technical that could affect trade with other Member countries.
Notify U.S. is a free, web-based e-mail service that offers an to review and comment on proposed foreign technical that can affect your access to markets.
Free Trade (FTA)
Learn how Free Trade can benefit you and your business. Take advantage of our user guides sorted by title, service/goods industry, issue or country on the Free Trade website.