Non-Tariff Barriers

Non-tariff barriers (NTBs) are restrictions other than customs tariffs that make it harder for foreign goods to enter or compete in a market. They restrict market access by limiting quantities, raising compliance costs, delaying clearance or discriminating against imported products. A non-tariff measure is not automatically a barrier: regulations may legitimately protect health, safety or the environment, although their design or application can unnecessarily obstruct trade.

Main forms of non-tariff barriers

Unlike a tariff, which imposes a tax on imports, non-tariff barriers operate through rules, procedures and quantitative restrictions.

• Import quotas place a ceiling on the quantity or value of goods that may enter a country; import prohibitions can exclude specified products altogether.
• Import licensing can restrict access when permissions are discretionary, limited or difficult to obtain.
• Technical requirements concerning product specifications, labelling, testing and certification can obstruct trade when unnecessarily restrictive or discriminatory.
• Sanitary and phytosanitary measures address food safety and animal or plant health; unjustified requirements can prevent otherwise competitive products from entering a market.
• Burdensome customs documentation, opaque procedures and discriminatory government purchasing practices can disadvantage foreign suppliers.

How they restrict market access

The central mechanisms are quantity limits and higher trade costs. A product may face a low tariff yet remain commercially unviable because meeting other entry requirements is expensive or uncertain.

• A binding quota prevents additional imports even when consumers demand them and foreign producers can supply them competitively.
• Different national standards can require exporters to redesign products or obtain additional testing and certification before selling abroad.
• Fixed compliance costs weigh particularly heavily on small exporters because they spread those costs over fewer sales.
• Slow clearance and unpredictable approvals increase storage costs, delay payments and make delivery schedules less reliable.
• Restrictions on imported inputs can raise domestic production costs and weaken export competitiveness, especially in global value chains that depend on timely cross-border supplies.

Distinguishing protection from legitimate regulation

The relevant distinction is between pursuing a legitimate public objective and using regulation as disguised protectionism. Removing every non-tariff measure would also remove necessary safeguards.

• Assessment should examine whether requirements discriminate against foreign products and whether their trade restrictiveness is justified by the objective pursued.
• Transparent procedures, predictable administration and avoidance of unnecessary duplication can reduce trade costs without abandoning health or safety standards.
• Trade facilitation therefore complements tariff liberalisation: lower duties alone do not guarantee effective market access.