Сборник материалов международной научной конференции студентов, магистрантов, аспирантов



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А.Ю. Ливай


Республика Беларусь, Брест, БрГТУ

Научный руководитель – И.Е. Климович


NON-TARIFF BARRIERS TO TRADE

Trade is vital to the success of a civilization. Without trade, countries would have to provide their own resources for every aspect in their daily life. This would mean the country being completely self-reliant which is difficult as the resource capacity of each country is limited. Trading is also important as it contributes to the economy of the country. So trade can be explained as the exchange of goods between those who produce them (producers) and those who consume them (consumers).

Trade can be divided into the following two types: internal (home or domestic) trade and external (foreign or international) trade.

This paper focuses on international trade and looks at how countries react to the variety of factors that attempt to influence trade.



International trade is the exchange of goods and services between countries. It increases the number of goods that domestic consumers can choose from, decreases the cost of those goods through increased competition, and allows domestic industries to ship their products abroad [3].

While all of these seem beneficial, free trade isn’t widely accepted as completely beneficial to all parties. All of the restrictions imposed by governments are normally called trade barriers. They are designed to rescue particular domestic industries whose relative inefficiency does not permit them to compete with foreign exporters in an open world market. Trade barriers also protect new industries until they are sufficiently well established to compete on the international market (reducing the level of imports by making them more expensive relative to domestic substitutes); protect key industries of the nation; counter the practice of dumping by raising the import price of the dumped good to market level; raise revenue for the government. The barriers can take many forms, including the following: tariffs and non-tariff barriers to trade.

In simplest terms, a tariff is a tax. It adds to the cost of imported goods and is one of several trade policies that a country can enact [1].

A non-tariff barrier (NTB) is any obstacle to international trade that is not an import or export duty [4]. They may take the form of import quotas, subsidies, customs delays, technical barriers, or other systems preventing or impeding trade.

Non-tariff measures of state regulation of foreign trade activities are very diverse. In accordance with the classification of the United Nations Economic Commission for Europe (UNECE) all variety of non-tariff methods of state regulation of foreign trade activities can be divided into three major groups:


  1. measures of direct restrictions;

  2. special protective measures;

  3. administrative and customs formalities.

The first category includes methods to directly import restrictions for protection of certain sectors of national industries: licensing and allocation of import quotas, antidumping and countervailing duties, import deposits, so-called voluntary export restraints, countervailing duties, the system of minimum import prices, etc.

Under the second category, methods are not directly aimed at restricting foreign trade and more related to the administrative bureaucracy, whose actions, however, restrict trade, for example: customs procedures, technical standards and norms, sanitary and veterinary standards, requirements for labelling and packaging, bottling, etc.

The third category consists of methods that are not directly aimed at restricting the import or promoting the export, but the effects of which often lead to this result.

The NTBs include a wide variety of restrictions to trade, examples being import licenses, export licenses, import quotas, subsidies, and embargo.



Licenses are granted to a business by the government, and allow the business to import a certain type of goods into the country. For example, there could be a restriction on imported cheese, and licenses would be granted to certain companies allowing them to act as importers. This creates a restriction on competition, and increases prices faced by consumers. Licensing of foreign trade is closely related to quantitative restrictions – quotas on imports and exports of certain goods.

A quota is a limitation in value or in physical terms, imposed on import and export of certain goods for a certain period of time. This sort of barrier is often associated with the issuance of licenses. For example, a country may place a quota on the volume of imported citrus fruit.



Embargo is a specific type of quotas prohibiting the trade. As well as quotas, embargoes may be imposed on imports or exports of particular goods, regardless of destination, in respect to certain goods supplied to specific countries, or in respect to all goods shipped to certain countries. Although an embargo is usually introduced for political purposes, the consequences, in essence, could be economic. A good example is Russia. It has introduced a full embargo on imports of beef, pork, fruit and vegetable produce, poultry, fish, cheese, milk and dairy products from the European Union (EU), United States (US), Australia, Canada and Norway. The move is a response to sanctions put on Russia over the conflict in Ukraine. Analysts have warned that protectionist measures will escalate inflation even though it may be a boon for local producers.

It is estimated that the Russian sanctions will affect about one-tenth of the country’s $43 billion in annual food imports, causing difficulties for foreign suppliers and domestic consumers alike. EU fruit and vegetable growers, who supply about $2.7 billion worth of produce to Russia each year, are expected to be particularly hard hit, but the pain will be spread unevenly across the 28-nation trading bloc, analysts said. “For the larger EU economies – Germany included – the costs are bearable. For some of the smaller EU economies the pain will be more acute”, RBS Capital said in a research note. For the US, the Russian embargo is expected to shut the door on a market worth about $1.3 billion a year [2].



Standards take a special place among non-tariff barriers. Countries usually impose standards on classification, labelling and testing of products in order not only to sell domestic products, but also block foreign product sales. These standards are sometimes entered under the pretext of protecting the safety and health of the local population. The most commonly used standards in international trade include product standards.

The government may require goods sold domestically to meet specific safety standards that are above the standards of the country that exports to the domestic market. This will mean that the exporter will either have to quit selling to the country that enacts such standards, leaving the domestic producer with less competition, or raise their standards for the products that they wish to export. This would increase their costs, and make them relatively less efficient than before [5]. Restrictions on genetically modified organisms (GMO) present one of the product standard examples.

Almost a third of the food products consumed in Europe are genetically modified organisms, in the US the figure is 60%. In Russia the situation is different. Until recently, the problem of GMO products was fought using GOST standards, but the Russian government has recently submitted a bill to the State Duma to ban the cultivation and breeding of genetically modified plants and animals in Russia. The seeds of plants obtained by genetic engineering techniques cannot be used for sowing. The Prime Minister of Russia Dmitry Medvedev has announced that Russia will end importing GMO products and stressed that he has ordered the widespread monitoring of the agricultural sector, because a certain amount of GMO products and seeds had made its way into the Russian market despite strict restrictions. Under the new legislation the certificates for GMOs would only be valid for ten years, but this certification previously had an unlimited duration [6].

Subsidies are paid by the government or an organization to make a particular product cheaper to buy, use, or produce.

The examples above are only some of the most popular NTBs, though the list can be very long, indeed.

The real impact of non-tariff regulation on trade, as well as other affected areas is quite difficult to identify. It is not easy to determine the true causes of input measures – whether they are caused by the desire to reduce the risks to health, to ensure compliance with standards or are hidden protectionist tools designed to protect the domestic market from foreign invaders.


  1. Chow, P. More on the Equivalence of Tariffs and Quotas / P. Chow, M. Keiiman // American Economic Review. – 1968. – March. – P. 142-146.

  2. Gorst, I. Russia begins implementing food embargo against U.S. and allies [Electronic resource] / I. Gorst, Ch. Parsons // Los Angeles Times. – Mode of access: http://www.latimes.com/world/europe/la-fg-russia-import-ban-takes-shape-20140807-story.html. – Date of access: 09.02.2015.

  3. Boyes, W. Economics / W. Boyes, M. Melvin. – Boston : Houghton Mifflin Company, 1991. – 1045 p.

  4. Non-Tariff Barriers to Trade [Electronic resource]. – Mode of access: http://www.tradebarriers.org/ntb/non_tariff_barriers. – Date of access: 09.02.2015.

  5. Radcliffe, B. The Basics of Tariffs and Trade Barriers [Electronic resource] / B. Radcliffe. – Mode of access: http://www.investopedia.com/arti cles/economics/ 08/tariff-trade-barrier-basics.asp. – Date of access: 09.02.2015.

  6. Russia announces “full embargo” on most food from US, EU [Electronic resource] // Foreign trade. – Mode of access: http://www.dw.de/russia-announces-full-embargo-on-most-food-from-us-eu/a-17838717. – Date of access: 09.02.2015.

В статье рассматриваются нетарифные методы регулирования внешней торговли, их толкование и классификация. Уделяется внимание применению нетарифных барьеров в условиях сегодняшнего мирового рынка, а также деятельности национального правительства, направленной на выработку адекватных инструментов внешнеторгового регулирования в области применения защитных мер, с целью создания условий для справедливой конкуренции на мировом рынке.



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