Economy / Foreign Trade / Non-Tariff Barriers..
Non-Tariff Barriers..
Introduction:
- While the WTO mandates the reduction of customs tariffs to promote globalization, various forms of Non-Tariff Barriers (NTBs) persist.
- NTBs serve as alternative mechanisms for protecting domestic economies against foreign competition.
Examples of NTBs:
- Social Clause:
- A proposed measure to exclude imports from developing countries based on factors such as weak labor laws, child labor, human rights, and environmental standards.
- Considered a form of back-door protectionism.
- Restrictions on H-1B Visas (USA):
- Imposing limits on the number of H-1B visas in the USA and increasing associated fees.
- A measure affecting the movement of skilled workers.
- Quantitative Restrictions (QRs):
- A form of NTB curbing imports or exports.
- Includes quotas, licensing requirements, and canalization (controlled bulk imports/exports through designated agencies).
NTBs Allowed by WTO:
- Sanitary and Phytosanitary Measures (SPS):
- Measures addressing the protection of animal, plant, and human life from diseases, pests, toxins, etc.
- Technical Barriers:
- Measures specifying product characteristics, production processes, packaging, labeling, marketing, etc.
