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Non-tariff Barriers

Non-tariff barriers such as regulations, quotas, labelling requirements can be at least as important as tariffs as a barrier to trade. Non-tariff barriers (NTBs) are administrative, technical and regulatory obstacles to trade.

Here are some common examples of non-tariff barriers:

  • Quotas: These are limits on the quantity of a good that can be imported.
  • Licenses and permits: Governments may require licenses or permits for certain goods to be imported, which can create red tape and delay the import process.
  • Regulations: Governments may impose regulations on imported goods that require additional testing, labeling, or packaging, which can add to the cost of imports.
  • Subsidies: Governments may provide financial support to domestic producers to help them compete against imports, which can make it harder for foreign producers to sell their products in the country.
  • Administrative requirements: Governments may impose complicated administrative requirements, such as inspection and certification procedures, that increase the cost and complexity of importing goods.

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