Nontariff Trade Barriers, Trade Restriction, International Economics Assignment Help

International Economics - Nontariff Trade Barriers, Trade Restriction, International Economics

International Economics >> Nontariff Trade Barriers

Nontariff Trade Barriers

Tariff is, however, not the only means of trade restriction. There are scores of direct and indirect nontariff methods of controlling and regulating trade, mainly imports. In fact, the use and importance of non tariff trade barriers ­both direct and indirect-has increased in the post-war II period mainly because tariffs invite retaliation and world opinion does not favour tariff. Direct nontariff barriers include such measures as import quota, exchange control, state trading, export subsidies, dumping and price discrimination whereas the indirect nontariff trade barriers are of varied nature; they vary from raising production standards of imports to administrative hurdles including complicated and stringent import pro­cedure, bureaucratic delays and harassment in processing the import permits. Af­ter the recommendation of the Kennedy Round for tariff cuts in 1967, however, nontariff barriers have emerged 'as the main roadblocks in the way of trade "Since the early 1970s, barriers have been getting even more formidable."

In this chapter, we will discuss the following nontariff trade barriers.

(i)      Import quota,

(ii)     Anti-dumping retaliation,

(iii)    Export tax and subsidies,

(iv)    Voluntary export restraint (VER)

(v)     Technical and administrative trade barriers,

(vi)    State trading,

(vii)   International trade cartels. 

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