NON-TARIFF BARRIERS (NTBS) (Syllabus: GS Paper 3 – Economy)
Context: India has flagged concerns over non-tariff barriers (NTBs) faced by its exporters with the Russian government,
Non-Tariff Barriers (NTBs)
- Definition: NTBs encompass a variety of measures beyond tariffs, such as quotas, licensing requirements, technical regulations, and subsidies.
- Forms: NTBs manifest as quotas, embargoes, licensing requirements, product standards, subsidies, and administrative procedures.
- Objectives: Implemented to protect domestic industries, ensure product quality and safety, and regulate foreign competition.
- Impact on International Trade: NTBs influence trade costs, availability, and competitiveness, alongside tariffs, shaping global market dynamics.
- How Non-Tariff Barriers Differ from Tariffs
o Nature of Measures: NTBs are regulatory and non-tax measures, contrasting with tariffs imposed directly on imports.
o Effects on Trade Dynamics: While tariffs increase import costs, NTBs create regulatory obstacles and compliance burdens.
- Examples of Non-Tariff Barriers
o Quotas: Limits on imported goods' quantities.
o Technical Regulations: Standards for product quality, safety, or labeling.
o Licensing Requirements: Mandatory permits for certain imports.
o Sanitary and Phytosanitary Standards (SPS): Regulations for food safety and animal/plant health.
o Customs Procedures: Administrative requirements and inspections for imports.
- Impact on International Trade
o Increase costs, cause delays, and restrict market access for foreign goods.
o Can lead to trade conflicts and complicate efforts to liberalize trade globally.
