Non-Tariff Barriers
Non-tariff barriers (NTBs) are restrictions on international trade other than tariffs. They include quotas, import licences, technical standards, sanitary regulations, and administrative procedures that, whether intended or not, restrict imports and protect domestic producers.[1]
Definition
Non-tariff barriers are trade restrictions that do not take the form of a tax on imports. As tariffs have fallen through successive rounds of trade liberalisation, non-tariff barriers have become relatively more important as instruments of protection.[1]
Types
| Type | Description |
|---|---|
| Quotas | Quantitative limits on imports. |
| Import licensing | Requirements to obtain permission before importing. |
| Technical standards | Product standards that imports must meet, sometimes used as disguised protection. |
| Sanitary and phytosanitary measures | Health and safety regulations on food and agricultural products. |
| Administrative barriers | Customs procedures and documentation requirements. |
| Voluntary export restraints | Agreements under which exporters limit their own shipments. |
Economic effects
Like tariffs, non-tariff barriers raise the domestic price of imports and reduce their quantity, harming consumers and reducing overall welfare. However, they are often less transparent than tariffs and can be harder to quantify and negotiate away. They may also generate no government revenue, in contrast to tariffs, so their welfare cost can be higher.[1]