Non Tariff Barriers : A strong Measure to control inflow of foreign goods

The international trade in present economic scenario faces many challenges . It is not about been the best or producing at lower cost or supplying at a competitive rate . There is something more which occurs into the growth path of developing nations . Trade barriers are well known to us.

To brief about trade barriers in layman terms : These are the measure to control imports and save the domestic market from more competitive players in the global market by imposing customs duties, setting up the quotas and much more by the governments.

But when we talk about Nontariff barriers it implies that with the above goal of reducing imports from different nations government uses some Administrative measures. These can be summarized as Traditional and NonTraditional Trade barriers.

1: Traditional Trade Barriers:

• Import Quotas
• Import Licensing
• Foreign Exchange regulations
• canalization of imports
• Production subsidies
• Export credit subsidies
• Tax concessions on exports
• Govt Procurement etc.

2: NonTraditional Trade Barriers: These are basically used by developed nations, the same is called VER: Voluntary Exports Restraints . Others are: administrative procedures, health, and sanitary issues 

They may put environmental issues/ Product standard/ technical barriers.

The above issue has been tried to resolve by the world economies by GATT, which based on nondiscrimination, elimination of nontariff barriers and consultation tries to avoid such issues among the nations  . But there is the lot more to be done for global economic welfare!