Join / Sign In
What Types of Non-Tariff Measures Exist and How Do They Affect International Trade?
167 views
0 comm

What Types of Non-Tariff Measures Exist and How Do They Affect International Trade?

Staff

Several countries and economic blocs have introduced non-tariff measures for foreign products. This has been done to protect their domestic market against competition from products from certain countries. These measures also protect consumers by guaranteeing a certain level of quality for products imported from abroad or to regulate the international trade of certain types of products. Non-tariff measures come in different shapes and sizes but can be classified into three broad groups: quantitative restrictions, qualitative restrictions, and administrative barriers.


The most widespread quantitative non-tariff measure is the establishment of export quotas. This is a restrictive measure that limits the quantities of a product imported into a given country. This measure is very often used to protect the local market. For example, in February 2019, the European Commission announced the setting of quotas on steel imports in Europe. This was in response to the concerns of European steelmakers who feared saturation of the European market following customs tariffs imposed by the US.


Concerning qualitative measures, they relate to the level of quality that all products entering a market must respect. They are primarily aimed at protecting the consumers who will use these products. The implementation of quality standards actualizes these measures. Examples of such standards are the CE standard for the European Union or the CCC standard in China.

International Trade, import, export, steel imports, European market, CE standard, international trade, Non-tariff measures, product, domestic market, Europe
Finally, there are regulatory or administrative measures that are more subtle and difficult to define. They consist of imposing lengthy and costly administrative formalities on the importers of certain products.


These tariff barriers have a real impact on international trade because they prevent the free access of products to all export markets. However, this strategy is justified by the desire to protect the local market against the competition of products of equivalent quality but produced much cheaper in African and Asian countries.


Learn More with EXIMA

For all the information you need to confidently trade internationally, join EXIMA. Our network of trade professionals is ready to share its knowledge with you today.

You may also like:

Dec 11
2019
Why Entrepreneurs Should Learn About Patents | Read More
Why Entrepreneurs Should Learn About Patents | Read More

A patent grants the inventor the legal right to fully take advantage of the novelty and to prevent others from making, using,...

Staff
Comments (0)
May 13
2019
Understanding Cameroon’s Role as Central Africa’s Business Hub
Understanding Cameroon’s Role as Central Africa’s Business Hub

What makes Cameroon the center for import and export in all of Central Africa, and how can businesses take advantage of...

Staff
Comments (0)
This website uses cookies. By using this website, you consent to our use of these cookies