Non-tariff barriers (NTBs) are various measures and obstacles to international trade that do not involve the imposition of tariffs or duties on imports and exports. Unlike tariffs, which are taxes on goods crossing borders, non-tariff barriers are regulatory or policy measures that can impede trade flows.
Here are some common types of non-tariff barriers:
Quotas: Quantitative restrictions on the quantity or value of specific goods that can be imported or exported during a specified period.
Licensing and Permit Requirements: Mandates for importers or exporters to obtain licenses or permits before engaging in trade. These can involve administrative burdens and delays.
Technical Barriers to Trade (TBT): Regulations, standards, and product requirements that can create obstacles for foreign products, especially if they differ from those applied domestically.
Sanitary and Phytosanitary Measures (SPS): Regulations related to health and safety standards for food, animals, and plants. While crucial for public health and safety, they can be used as barriers to trade if not based on scientific principles.
Subsidies: Government support to domestic industries, creating an uneven playing field by providing an advantage to domestic producers over foreign competitors.
Customs Procedures: Complex and lengthy customs procedures, including documentation requirements, inspections, and administrative processes, can hinder the smooth flow of goods across borders.
Embargoes and Trade Restrictions: Complete prohibitions or restrictions on trade with specific countries due to political, economic, or security reasons.
Currency Controls: Restrictions on the conversion or movement of currencies, affecting the ease of conducting international transactions.
Intellectual Property Restrictions: Differences in intellectual property laws and enforcement can create barriers to the trade of goods that involve patents, trademarks, copyrights, and other intellectual property rights.
Local Content Requirements: Mandates for a certain percentage of a product to be produced locally or to include a specific amount of locally sourced materials.
Government Procurement Policies: Restrictions on foreign companies' participation in government procurement or preferences given to domestic suppliers.
Environmental Regulations: Stringent environmental standards imposed by a country can affect the trade of goods that do not meet those standards.
These non-tariff barriers can vary widely from country to country and are often subject to negotiation and discussion in international trade agreements. They can significantly impact the flow of goods and services across borders.
Non-tariff barriers (NTBs) are posing a challenge to India's efforts to boost global trade. Some examples of non-tariff barriers (NTBs) faced by India's exports include government procurement policies, government industrial policy and regional development measures, competition policies, immigration policies, customs procedures, and administrative practices.
Additionally, Indian exports face NTBs such as complex rules and time-consuming procedures for authorization clearances, mandatory testing at laboratories, and non-aligned international standards and regulations in major export markets like the US, EU, Japan, and other developed countries.
Specific products facing high NTBs include chilies, tea, basmati rice, milk, poultry, bovine meat, fish, chemical products, sesame seed, shrimp, and medicines. These barriers can have adverse impacts on India's exports, with some studies indicating that Indian exports suffer due to the complex rules and regulations set by developed countries.
India is taking a tough stand on non-tariff barriers being imposed on Indian exports by other countries and would also take similar measures on a reciprocal basis, Commerce and Industry Minister Piyush Goyal said, recently.
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